Australian iron ore production and export to surge by 2012

Monday,4July,2011

Reuters reported that iron ore production in Australia, the world largest exporter of the steelmaking raw material is rising rapidly to keep pace with projected increases in China led demand.

According to government trade data iron ore exports should rise 3% to 414 million tonnes this year before climbing to 459 million tonnes in 2012.

Below is a list of production schedules for the country major suppliers driving future output?

1. Rio Tinto
Rio Tinto is targeting an increase in production to 333 million tonnes a year by the first half of 2015 from around 230 million tonnes currently.

2. BHP Billiton
BHP mines about 155 million tonnes of iron ore a year and is developing new mines and port facilities to lift output to 240 million tonnes in 2015.

3. Forescue Metals Group
Production is scheduled to rise to 155 million tonnes a year by June 2013 from 55 million tonnes currently.

4. Cliffs Natural Resources
The company's Cockatoo Island project resumed production in the third quarter of 2010 following construction of a seawall and is forecast to produce 700,000 tonnes through 2012.

5. Mount Gibson
The company Tallering Peak mine is operating at a production rate of 3 million tonnes per year. A second deposit, Koolan Island is ramping up to a rate of 4 million tonnes a year by December 2011 from 3 million tonnes currently.

6. Murchison Metals
Production of up to 25 million tonnes per year is being targeted from the Jack Hills mine to coincide with the commissioning of a new 560 kilometers rail line to a new port at Oakajee. Development of the port has been delayed by at least three years to 2015.

Murchison is a 50% shareholder in Crosslands Resources Ltd which is the owner of the Jack Hills mine. The remaining 50% of Crosslands is held by a subsidiary of Mitsubishi Corp.

7. Sinosteel
The company Koolanooka/Blue Hills project commenced operations in early 2010 at a production rate of about 1.5 million tonnes a year and is scheduled to run for five years. Sinosteel has suspended development work on its 15 million tonnes per year Weld Range mine pending a definitive time schedule for construction of the Oakajee port and rail project.

8. Atlas Iron
The current production rate of 7 million tonnes per year from Atlas' Wodgina mine is scheduled to rise to 12 million tonnes in 2013 and 22 million tonnes in 2015.

9. Gindalbie Metals
The Karara Project is scheduled to yield 3 million tonnes of hematite ore from mid 2011 and 8 million tonnes annually of magnetite concentrates from late 2011.

10. BC Iron
The firm's Nullagine deposit is forecast to yield 300,000 tonnes of iron ore in the half year to June 30 with full year output estimated at 2.3 million tonnes. Total product shipped for the year ending December 2011 is expected to be approximately 2.3 million tonnes rising to 3.5 million tonnes to 3.7 million tonnes in 2012.

11. Grange Resources
The company Savage River mine project is yielding 2 million tonnes of iron ore annually with potential to increase output to 2.6 million tonnes during its remaining 16 year mine life.

(Sourced from Reuters)