Iron ore mining in Western Australia
Encyclopedia
Iron ore mining in Western Australia, in the financial year 2008-09, accounted for 47 percent of the total value
of the state's resources, with a value of A$
33.56 billion. The overall value of the mineral and petroleum industry in Western Australia
was A$71.3 billion in 2008-09, a 19 percent increase compared to the previous financial year.
Iron ore in Western Australia experienced unprecedented growth in 2008-09, with the state's output growing by 8.5 percent, to 316 million tonnes of ore. In terms of value, the industry grew by 53 percent. The bulk of Western Australian ore went to China
, which imported 64 percent of the 2008-09 production, followed by Japan
with 21 percent.
In the calendar year 2009, the Western Australian Government
received over A$1.7 billion in royalties from the iron ore mining industry in the state.
discovered in 1957 by Stan Hilditch, it was not until 1960, when the Australian Government
lifted the embargo on iron ore exports it had put in place because of concerns the mineral was in short supply, that mining began in earnest. Up until the mid-1960s, iron ore production in Western Australia, and Australia as a whole, was negligible, in the range of less than 10 million tonnes a year. By the mid-1970s, this figure had reached 100 million tonnes, with the majority coming from Western Australia. Production slightly declined in the 1980s but it improved in the 1990s, reaching 150 million tonnes for the country by 1997 and 200 million tonnes by 2003.
The first mine to develop in the Pilbara was the Goldsworthy mine in 1965 and a railway line, the Goldsworthy railway
, as well as port facilities at Finucane Island, Port Hedland
, were constructed. On 1 June 1966, the first shipment of iron ore from the Pilbara left on board of the Harvey S. Mudd.
BHP's operations in Newman
date back to 1968, when the Mount Whaleback mine was opened, the biggest single-pit Open-pit
iron ore mine in the world, developed originally by United States
company Bechtel Pacific. A new town, Newman, was constructed, as well as a 426 kilometre railway line, the Mount Newman railway
. The first train left Newman on 1 January 1969 and the first shipment of Newman ore left port on 1 April 1969 on board of the Osumi Maru. Newman remained a "closed" company town until 1981.
Rio Tinto's iron ore operations in the Pilbara began in 1966, with the Mount Tom Price mine
opened that year, becoming the company's first mine to open in the Pilbara.
The big two producers, Rio Tinto
and BHP Billiton
accounted for 90 percent of all iron ore production in the state in 2008-09, with the third-biggest producer being the Fortescue Metals Group
.
Rio Tinto operates twelve iron ore mines in Western Australia, BHP Billiton seven, Fortescue two, all of those are located in the Pilbara region.
BHP Billiton operates the Goldsworthy railway
and the Mount Newman railway
, both terminating at Port Hedland.
Rio Tinto operates the Hamersley & Robe River railway
, formed in a 2001 merger of the Hamersley and Robe River lines. The two lines terminate at Cape Lambert and Dampier.
FMG's Fortescue railway
is a relative newcomer, having started operation in 2008. The line terminates at Port Hedland. Before deciding to construct its own line, the National Competition Council of Australia received an application from FMG, on 15 June 2004, to use part of the Mount Newman railway and also part of the Goldsworthy railway.
In June 2010, the Australian Competition Tribunal ruled that FMG would be granted access to Rio Tinto's Robe River line and BHP Billiton's Goldsworthy line but not to the busier Hamersley and Mount Newman lines. Treasurer Wayne Swan
suggested that several advantages would accrue from access to the rail lines by third parties. It would increase competition, reduce duplication of infrastructure, and reduce environmental damage. Atlas Iron
, another junior iron ore miner, is hopeful to come to terms with BHP Billiton in regards to using some of the company's rail infrastructure, the Goldsworthy railway, in the future. BHP, in late 2010, had agreed to a joint feasibility study into how an arrangement might work.
Access to the rail networks by third parties is governed by the State Agreements Act.
Port facilities at Port Hedland consist of Nelson Point and Finucane Island, both BHP, and Herb Elliott Port, used by FMG. In Dampier, ore is shipped from Parker Point and East Intercourse Island.
The non-Pilbara mines ship their ore out of other ports, like the Koolyanobbing mine, which ships from the port of Esperance
, or the Koolanooka mine and the Jack Hills mine, which both ship from Geraldton.
is part of another expansion project, launched in 2010 and aimed at increasing production from the Pilbara mines to 240 million tonnes of iron ore annually by 2013. The expansion of Jimlebar, together with an expansion of the inner harbour at Port Hedland and works on the duplication of rail tracks is estimated to cost A$2.15billion. The project is titled Rapid Growth Project 6.
Rio Tinto declared its intent to expand the Hope Downs mine
, spending a further A$1.78 billion on its new Hope Downs 4 project, scheduled to produce 15 million tonnes of iron ore annually by 2013. Rio has commenced construction on its new Western Turner Syncline project. Rio Tinto allocated a further A$1.24 billion in early December 2010, to expand the Brockman 4 mine
to 40 million tonnes per annum, from 22, as well as develop its Western Turner Syncline project, raising planned production there from 6 to 15 million tonnes, with the aim of increasing the Pilbara production to 283 million tonnes per annum by late 2013. The expansion would make Brockman 4 Rio Tinto's second-largest mine in the Pilbara. The company has also begun further construction at the port at Cape Lambert
, which is scheduled to undergo a further expansion, to be completed by 2012. The new expansion is scheduled to cost A$276million. The expansion is part of a plan to raise Rio's annual production from the Pilbara from 220 to 330 million tonnes annually by 2016. To achieve this, the Cape Lambert port capacity will be expanded to handle an additional 100 million tonnes annually.
Plans by the Fortescue Metals Group to increase production from 39 million tonnes to 55 million tonnes through a U$220 million upgrade of the Cloud Break mine
had to be abandoned in October 2009 because of funding difficulties through its Chinese investors. Instead, Fortescue decided to develop its Christmas Creek mine
, at a cost of U$360 million, by building a mine and process plant there and linking it to its existing rail network. Christmas Creek is scheduled to produce 16 million tonnes of iron ore in its first year of operation. Fortescue plans to reach an annual production of 95 million tonnes of iron ore by 2012, downgraded from an earlier target of 120 million.
At Cape Preston
, CITIC Pacific Mining is currently, as of 2010, in the process of constructing a 27.6 million tonnes per annum magnetite
iron ore mine, named the Sino Iron Project.
with 10 percent and Taiwan
with three. In comparison, Europe
is a small market for ore from the state, having taken only one percent of the overall production in 2008-09.
workers which has seen land prices skyrocket and has negatively affected tourism as accommodation has become sparse.
culture in the region is deeply connected to the land and water and the mining activities threaten the fragile desert environment of the Pilbara. Locals in the Pilbara feel that the massive wealth created by the local mining industry is passing them by and they are left behind. A lack of accommodation and the unattractiveness of relocating to the "dusty outback" resulted in a majority work force of fly-in fly-out workers, depriving local towns of the benefits of a high-earning permanent population.
Mining companies in Australia have, since 1992, changed their attitude towards the local Aboriginal population. In 1992, the Australian government
started to recognise the land rights of the Indigenous Australians
, opening an opportunity for the later to engage in negotiations with mining companies to press for compensation and for assistance in preserving cultural artifacts. However, some Aboriginals feel short-changed, giving the enormous profits made from mining, and also consider the financial benefits and employment opportunities as insufficient compensation for the destruction caused to their habitat.
Aboriginal mining companies have been able to secure contracts with the big international mining companies. In 2007, BHP Billiton awarded a A$300 million contract to Ngarda Civil and Mining, an Aboriginal
-owned company, to manage the mine, the largest ever mining contract awarded to an Aboriginal company. As part of the five year contract, BHP Billiton planned to increase the number of Aboriginal workers at the mine to 70, out of a total of 90 workers all up. The managing director of Ngarda, Brian Taylor, saw this contract as a positive step, moving Aboriginal people in the region away from government welfare and into permanent employment. Western Australian Aboriginals, in 2007, suffered from an unemployment rate of 14 percent in the state, compare to 3.3 for the general population. Of the 12,000 people employed by BHP Billiton in its the Pilbara operations in 2010, 700 were indigenous. Rio Tinto also, as of 2010, employes 700 indigenous workers in its Pilbara operations, compromissing 6 percent of its overall work force. FMG, under the leadership of Andrew Forrest
, is driving a national program which aims to find 50,000 jobs for indigenous workers in Australia. Companies like BHP Billiton, FMG and Rio Tinto have programs aimed at increasing the number of Aboriginal employees in their operations.
Many companies however lack an understanding of Aboriginal culture, which requires young men to be sent to the bush for up to six weeks to hunt and learn about their culture. Companies are often unwilling to award their indigenous employees this time off to be able to perform these important traditions.
Since the late 1960s, when the Department of Mines began categorising fatalities by commodity, until 2010, 86 work-related fatlities have occurred in the iron ore mining industry in Western Australia.
of the state's resources, with a value of A$
Australian dollar
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...
33.56 billion. The overall value of the mineral and petroleum industry in Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
was A$71.3 billion in 2008-09, a 19 percent increase compared to the previous financial year.
Iron ore in Western Australia experienced unprecedented growth in 2008-09, with the state's output growing by 8.5 percent, to 316 million tonnes of ore. In terms of value, the industry grew by 53 percent. The bulk of Western Australian ore went to China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, which imported 64 percent of the 2008-09 production, followed by Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
with 21 percent.
In the calendar year 2009, the Western Australian Government
Government of Western Australia
The formation of the Government of Western Australia is prescribed in its Constitution, which dates from 1890, although it has been amended many times since then...
received over A$1.7 billion in royalties from the iron ore mining industry in the state.
History
While iron ore deposits were known, like the Mount Whaleback depositMount Whaleback mine
The Mount Whaleback mine is an iron ore mine located in the Pilbara region of Western Australia, 6 kilometres west of Newman.The mine is majority-owned and operated by BHP Billiton, and is one of seven iron ore mines the company operates in the Pilbara...
discovered in 1957 by Stan Hilditch, it was not until 1960, when the Australian Government
Government of Australia
The Commonwealth of Australia is a federal constitutional monarchy under a parliamentary democracy. The Commonwealth of Australia was formed in 1901 as a result of an agreement among six self-governing British colonies, which became the six states...
lifted the embargo on iron ore exports it had put in place because of concerns the mineral was in short supply, that mining began in earnest. Up until the mid-1960s, iron ore production in Western Australia, and Australia as a whole, was negligible, in the range of less than 10 million tonnes a year. By the mid-1970s, this figure had reached 100 million tonnes, with the majority coming from Western Australia. Production slightly declined in the 1980s but it improved in the 1990s, reaching 150 million tonnes for the country by 1997 and 200 million tonnes by 2003.
The first mine to develop in the Pilbara was the Goldsworthy mine in 1965 and a railway line, the Goldsworthy railway
Goldsworthy railway
The Goldsworthy railway, owned and operated by BHP Billiton, is a private rail network in the Pilbara region of Western Australia for the purpose of carrying iron ore. It is one of two railway lines the group operates in the Pilbara, the other being the Mount Newman railway.Additionally to the BHP...
, as well as port facilities at Finucane Island, Port Hedland
Port Hedland, Western Australia
Port Hedland is the highest tonnage port in Australia and largest town in the Pilbara region of Western Australia, with a population of approximately 14,000 ....
, were constructed. On 1 June 1966, the first shipment of iron ore from the Pilbara left on board of the Harvey S. Mudd.
BHP's operations in Newman
Newman, Western Australia
Newman, located about 1186 km north of Perth and 9 km north of the Tropic of Capricorn, is a town in the Pilbara region. It can be reached by the Great Northern Highway...
date back to 1968, when the Mount Whaleback mine was opened, the biggest single-pit Open-pit
Open-pit mining
Open-pit mining or opencast mining refers to a method of extracting rock or minerals from the earth by their removal from an open pit or borrow....
iron ore mine in the world, developed originally by United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
company Bechtel Pacific. A new town, Newman, was constructed, as well as a 426 kilometre railway line, the Mount Newman railway
Mount Newman railway
The Mount Newman railway, owned and operated by BHP Billiton, is a private rail network in the Pilbara region of Western Australia for the purpose of carrying iron ore...
. The first train left Newman on 1 January 1969 and the first shipment of Newman ore left port on 1 April 1969 on board of the Osumi Maru. Newman remained a "closed" company town until 1981.
Rio Tinto's iron ore operations in the Pilbara began in 1966, with the Mount Tom Price mine
Mount Tom Price mine
The Mount Tom Price mine is an iron ore mine located in the Pilbara region of Western Australia, near Tom Price.The mine is fully owned and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara. In the calendar year 2009, the combined Pilbara...
opened that year, becoming the company's first mine to open in the Pilbara.
Exploration
In 2008-09, expenditure for exploration in iron ore in Western Australia increased by 33 percent compared to the previous financial year, 2007-08. The A$560million spend on iron ore exploration accounted for 45 percent of all mineral exploration expenditure in the state.Production
The bulk of iron ore production in Western Australia comes from the Pilbara region of the state. A number of mines however are also located in the Mid West and Kimberley regions as well as in the Wheatbelt.The big two producers, Rio Tinto
Rio Tinto Group
The Rio Tinto Group is a diversified, British-Australian, multinational mining and resources group with headquarters in London and Melbourne. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain from the...
and BHP Billiton
BHP Billiton
BHP Billiton is a global mining, oil and gas company headquartered in Melbourne, Australia and with a major management office in London, United Kingdom...
accounted for 90 percent of all iron ore production in the state in 2008-09, with the third-biggest producer being the Fortescue Metals Group
Fortescue Metals Group
Fortescue Metals Group is an Australian iron ore mining company. The company has holdings of more than 87,000 km² in the Pilbara region of Western Australia making it the largest tenement holder in the state. It is listed as FMG on the Australian Securities Exchange .In 2008, the group loaded...
.
Rio Tinto operates twelve iron ore mines in Western Australia, BHP Billiton seven, Fortescue two, all of those are located in the Pilbara region.
Pilbara region
As of 2010, only the three big mining companies operate private rail networks for the purpose of transporting iron ore from the mines to the coast.BHP Billiton operates the Goldsworthy railway
Goldsworthy railway
The Goldsworthy railway, owned and operated by BHP Billiton, is a private rail network in the Pilbara region of Western Australia for the purpose of carrying iron ore. It is one of two railway lines the group operates in the Pilbara, the other being the Mount Newman railway.Additionally to the BHP...
and the Mount Newman railway
Mount Newman railway
The Mount Newman railway, owned and operated by BHP Billiton, is a private rail network in the Pilbara region of Western Australia for the purpose of carrying iron ore...
, both terminating at Port Hedland.
Rio Tinto operates the Hamersley & Robe River railway
Hamersley & Robe River railway
The Hamersley & Robe River railway, majority-owned and operated by the Rio Tinto Group, is a private rail network in the Pilbara region of Western Australia for the purpose of carrying iron ore. The network is larger than any other Australian heavy freight rail network in private ownership. The...
, formed in a 2001 merger of the Hamersley and Robe River lines. The two lines terminate at Cape Lambert and Dampier.
FMG's Fortescue railway
Fortescue railway
The Fortescue Railway, owned and operated by the Fortescue Metals Group , is a private rail network in the Pilbara region of Western Australia for the purpose of carrying iron ore. It is the only railway line the group operates in the Pilbara, having opened in 2008...
is a relative newcomer, having started operation in 2008. The line terminates at Port Hedland. Before deciding to construct its own line, the National Competition Council of Australia received an application from FMG, on 15 June 2004, to use part of the Mount Newman railway and also part of the Goldsworthy railway.
In June 2010, the Australian Competition Tribunal ruled that FMG would be granted access to Rio Tinto's Robe River line and BHP Billiton's Goldsworthy line but not to the busier Hamersley and Mount Newman lines. Treasurer Wayne Swan
Wayne Swan
Wayne Maxwell Swan is the Deputy Prime Minister of Australia and an Australian politician. He has been an Australian Labor Party member of the Australian House of Representatives from 1993 to 1996, and then re elected in 1998 till today , representing the Division of Lilley, QLD...
suggested that several advantages would accrue from access to the rail lines by third parties. It would increase competition, reduce duplication of infrastructure, and reduce environmental damage. Atlas Iron
Atlas Iron
Atlas Iron an Australian mining company and an iron ore explorer, developer and producer, predominantley active in the Pilbara region.The company operates two iron ore mines in Western Australia, the Pardoo mine, which opened in 2008, and the Wodgina mine, which opened in July 2010.-Company...
, another junior iron ore miner, is hopeful to come to terms with BHP Billiton in regards to using some of the company's rail infrastructure, the Goldsworthy railway, in the future. BHP, in late 2010, had agreed to a joint feasibility study into how an arrangement might work.
Access to the rail networks by third parties is governed by the State Agreements Act.
Westrail region
Other generally smaller iron ore mines use the formerly Governmment railways to reach convenient ports. They include:- Koolyanobbing to reach EsperanceEsperanceEsperance may refer to:* Esperance , New York* Esperance , New York* Esperance, Washington* Esperance, Western Australia* Exuperantia , French saint* HMS Esperance, two ships of the Royal Navy* The battle cry of Henry Percy...
port - Jack HillsJack HillsThe Jack Hills are a range of hills in Mid West Western Australia. They are best known as the source of the oldest material of terrestrial origin found to date: zircons that formed around 4.4 billion years ago...
to reach Geraldton port. (partly road hauled). - KararaKararaKarara may refer to:* Karara, Queensland* Karara and Lochada Important Bird Area, Western Australia* Karara, a fictional character from Sgt. Frog.* Karara, Western Australia-See also:* Gymnopilus karrara, species of mushroom...
to reach Geraldton port (narrow gauge). (proposed). - KararaKararaKarara may refer to:* Karara, Queensland* Karara and Lochada Important Bird Area, Western Australia* Karara, a fictional character from Sgt. Frog.* Karara, Western Australia-See also:* Gymnopilus karrara, species of mushroom...
to reach Oakajee port (standard gauge). (proposed).
Ports
In the Pilbara, iron ore is shipped from Port Hedland, Dampier and Cape Lambert. The latter two ports are exclusively used by Rio Tinto, while Port Hedland is used by BHP, FMG and Atlas Iron.Port facilities at Port Hedland consist of Nelson Point and Finucane Island, both BHP, and Herb Elliott Port, used by FMG. In Dampier, ore is shipped from Parker Point and East Intercourse Island.
The non-Pilbara mines ship their ore out of other ports, like the Koolyanobbing mine, which ships from the port of Esperance
Esperance, Western Australia
Esperance is a large town in the Goldfields-Esperance region of Western Australia, located on the Southern Ocean coastline approximately east-southeast of the state capital, Perth. The shire of Esperance is home to 9,536 people as of the 2006 census, its major industries are tourism, agriculture,...
, or the Koolanooka mine and the Jack Hills mine, which both ship from Geraldton.
Projects
BHP Billiton is currently spending A$1.85 billion on its Rapid Growth Project 4, aimed at increasing its annual iron ore output to 155 million tonnes. To achieve this, upgrades to both mines and port facilities are necessary. The project is scheduled for completion by 2010. As a follow-up, Rapid Growth Project 5, with a budget of A$4.8 billion, targets a further production increase of 50 million tonnes annually. Additionally to upgrades at the mines and ports, it will also include duplication of existing railway lines and is scheduled for completion in late 2011. The Jimblebar mineJimblebar mine
The Jimblebar mine is an iron ore mine located in the Pilbara region of Western Australia, 41 kilometres east of Newman.The mine is fully owned and operated by BHP Billiton, and is one of seven iron ore mines the company operates in the Pilbara...
is part of another expansion project, launched in 2010 and aimed at increasing production from the Pilbara mines to 240 million tonnes of iron ore annually by 2013. The expansion of Jimlebar, together with an expansion of the inner harbour at Port Hedland and works on the duplication of rail tracks is estimated to cost A$2.15billion. The project is titled Rapid Growth Project 6.
Rio Tinto declared its intent to expand the Hope Downs mine
Hope Downs mine
The Hope Downs mine is an iron ore mine located in the Pilbara region of Western Australia, 100 kilometres northwest of Newman.The mine is partly owned and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara...
, spending a further A$1.78 billion on its new Hope Downs 4 project, scheduled to produce 15 million tonnes of iron ore annually by 2013. Rio has commenced construction on its new Western Turner Syncline project. Rio Tinto allocated a further A$1.24 billion in early December 2010, to expand the Brockman 4 mine
Brockman 4 mine
The Brockman 4 mine is an iron ore mine located in the Pilbara region of Western Australia, 60 kilometres north-west of Tom Price. The mine, located near the existing Brockman mine, is scheduled to open in 2010....
to 40 million tonnes per annum, from 22, as well as develop its Western Turner Syncline project, raising planned production there from 6 to 15 million tonnes, with the aim of increasing the Pilbara production to 283 million tonnes per annum by late 2013. The expansion would make Brockman 4 Rio Tinto's second-largest mine in the Pilbara. The company has also begun further construction at the port at Cape Lambert
Cape Lambert
Cape Lambert is a port facility operated by Rio Tinto Iron Ore in the Pilbara region of Western Australia. It is located 40 kilometres north of Karratha.-Overview:...
, which is scheduled to undergo a further expansion, to be completed by 2012. The new expansion is scheduled to cost A$276million. The expansion is part of a plan to raise Rio's annual production from the Pilbara from 220 to 330 million tonnes annually by 2016. To achieve this, the Cape Lambert port capacity will be expanded to handle an additional 100 million tonnes annually.
Plans by the Fortescue Metals Group to increase production from 39 million tonnes to 55 million tonnes through a U$220 million upgrade of the Cloud Break mine
Cloud Break mine
The Cloudbreak mine is an iron ore mine located in the Pilbara region of Western Australia, 89 kilometres west-south-west of Nullagine, in the Chichester Range....
had to be abandoned in October 2009 because of funding difficulties through its Chinese investors. Instead, Fortescue decided to develop its Christmas Creek mine
Christmas Creek mine
The Christmas Creek mine is an iron ore mine located in the Pilbara region of Western Australia, 61 kilometres south-south-west of Nullagine, in the Chichester Range....
, at a cost of U$360 million, by building a mine and process plant there and linking it to its existing rail network. Christmas Creek is scheduled to produce 16 million tonnes of iron ore in its first year of operation. Fortescue plans to reach an annual production of 95 million tonnes of iron ore by 2012, downgraded from an earlier target of 120 million.
At Cape Preston
Cape Preston
Cape Preston is a rocky headland located in the Pilbara region of Western Australia and is situated West South West from Karratha.Cape Preston is a standard Bureau of Meteorology reference point for coastal weather reports, it is located between Wallal and North West Cape.The area is noted for its...
, CITIC Pacific Mining is currently, as of 2010, in the process of constructing a 27.6 million tonnes per annum magnetite
Magnetite
Magnetite is a ferrimagnetic mineral with chemical formula Fe3O4, one of several iron oxides and a member of the spinel group. The chemical IUPAC name is iron oxide and the common chemical name is ferrous-ferric oxide. The formula for magnetite may also be written as FeO·Fe2O3, which is one part...
iron ore mine, named the Sino Iron Project.
Export
China, in 2008-09, was the main importer of Western Australian ore, having taken 64 percent, or A$21 billion in value. Japan was the second-most important market with 21 percent, followed by South KoreaSouth Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
with 10 percent and Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
with three. In comparison, Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
is a small market for ore from the state, having taken only one percent of the overall production in 2008-09.
General
The iron ore mining boom in Western Australia experienced since the early 2000s has not exclusivley been seen as positive. Communities in the Pilbara region have seen a large influx of residential and Fly-in fly-outFly-in fly-out
Fly-in fly-out is a method of employing people in remote areas. It is often abbreviated to FIFO when referring to employment status. This is common in large mining states in Australia...
workers which has seen land prices skyrocket and has negatively affected tourism as accommodation has become sparse.
Australian Aborigines
AboriginalAustralian Aborigines
Australian Aborigines , also called Aboriginal Australians, from the latin ab originem , are people who are indigenous to most of the Australian continentthat is, to mainland Australia and the island of Tasmania...
culture in the region is deeply connected to the land and water and the mining activities threaten the fragile desert environment of the Pilbara. Locals in the Pilbara feel that the massive wealth created by the local mining industry is passing them by and they are left behind. A lack of accommodation and the unattractiveness of relocating to the "dusty outback" resulted in a majority work force of fly-in fly-out workers, depriving local towns of the benefits of a high-earning permanent population.
Mining companies in Australia have, since 1992, changed their attitude towards the local Aboriginal population. In 1992, the Australian government
Government of Australia
The Commonwealth of Australia is a federal constitutional monarchy under a parliamentary democracy. The Commonwealth of Australia was formed in 1901 as a result of an agreement among six self-governing British colonies, which became the six states...
started to recognise the land rights of the Indigenous Australians
Indigenous Australians
Indigenous Australians are the original inhabitants of the Australian continent and nearby islands. The Aboriginal Indigenous Australians migrated from the Indian continent around 75,000 to 100,000 years ago....
, opening an opportunity for the later to engage in negotiations with mining companies to press for compensation and for assistance in preserving cultural artifacts. However, some Aboriginals feel short-changed, giving the enormous profits made from mining, and also consider the financial benefits and employment opportunities as insufficient compensation for the destruction caused to their habitat.
Aboriginal mining companies have been able to secure contracts with the big international mining companies. In 2007, BHP Billiton awarded a A$300 million contract to Ngarda Civil and Mining, an Aboriginal
Australian Aborigines
Australian Aborigines , also called Aboriginal Australians, from the latin ab originem , are people who are indigenous to most of the Australian continentthat is, to mainland Australia and the island of Tasmania...
-owned company, to manage the mine, the largest ever mining contract awarded to an Aboriginal company. As part of the five year contract, BHP Billiton planned to increase the number of Aboriginal workers at the mine to 70, out of a total of 90 workers all up. The managing director of Ngarda, Brian Taylor, saw this contract as a positive step, moving Aboriginal people in the region away from government welfare and into permanent employment. Western Australian Aboriginals, in 2007, suffered from an unemployment rate of 14 percent in the state, compare to 3.3 for the general population. Of the 12,000 people employed by BHP Billiton in its the Pilbara operations in 2010, 700 were indigenous. Rio Tinto also, as of 2010, employes 700 indigenous workers in its Pilbara operations, compromissing 6 percent of its overall work force. FMG, under the leadership of Andrew Forrest
Andrew Forrest
Andrew Forrest also known by his nickname "Twiggy", is a Western Australian mining entrepreneur, former chief executive officer, non-executive chairman, and the major shareholder of Fortescue Metals Group...
, is driving a national program which aims to find 50,000 jobs for indigenous workers in Australia. Companies like BHP Billiton, FMG and Rio Tinto have programs aimed at increasing the number of Aboriginal employees in their operations.
Many companies however lack an understanding of Aboriginal culture, which requires young men to be sent to the bush for up to six weeks to hunt and learn about their culture. Companies are often unwilling to award their indigenous employees this time off to be able to perform these important traditions.
Safety
In the past decade, from 2001 to 2010, 42 employees have lost their live in the state's mining industry. Of those, gold and iron ore have been the most dangerous, with 14 fatalities each. Of the 42 fatalities, 29 have occurred at the surface and 13 in underground mining. Iron ore last had a fatality-free year in 2006.Since the late 1960s, when the Department of Mines began categorising fatalities by commodity, until 2010, 86 work-related fatlities have occurred in the iron ore mining industry in Western Australia.
List of active mines
This is a list of currently active iron ore mines in Western Australia:| Mine | Owner 1 | Location 2 | Region | Capacity 3 | Opening year |
| Area C mine Area C mine The Area C mine is an iron ore mine located in the Pilbara region of Western Australia, 92 kilometres west-north-west of Newman.The mine is majority-owned and operated by BHP Billiton, and is one of seven iron ore mines the company operates in the Pilbara... |
BHP Billiton BHP Billiton BHP Billiton is a global mining, oil and gas company headquartered in Melbourne, Australia and with a major management office in London, United Kingdom... |
Newman Newman, Western Australia Newman, located about 1186 km north of Perth and 9 km north of the Tropic of Capricorn, is a town in the Pilbara region. It can be reached by the Great Northern Highway... |
Pilbara | 42 | 2003 |
| Brockman mine Brockman mine The Brockman mine is an iron ore mine located in the Pilbara region of Western Australia, 60 kilometres north-west of Tom Price. It is sometimes also referred to as Brockman 2 mine to differentiate between it and Rio Tinto's new Brockman 4 mine project, also in the area.The mine is fully owned and... |
Rio Tinto Rio Tinto Group The Rio Tinto Group is a diversified, British-Australian, multinational mining and resources group with headquarters in London and Melbourne. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain from the... |
Tom Price Tom Price, Western Australia Tom Price, situated in the Pilbara region of Western Australia, is an industrial town. The town is located inland, at the edge of the Hamersley Range... |
Pilbara | 8.7 | 1992 |
| Brockman 4 mine Brockman 4 mine The Brockman 4 mine is an iron ore mine located in the Pilbara region of Western Australia, 60 kilometres north-west of Tom Price. The mine, located near the existing Brockman mine, is scheduled to open in 2010.... |
Rio Tinto | Tom Price | Pilbara | 22 | 2010 |
| Channar mine Channar mine The Channar mine is an iron ore mine located in the Pilbara region of Western Australia, 17 kilometres south-east of Paraburdoo.The mine is partly owned and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara... |
Rio Tinto | Paraburdoo Paraburdoo, Western Australia Paraburdoo is a town in the Pilbara region of Western Australia. The name of the town comes from the Aboriginal word for 'white cockatoo'. It is located 1,536 kilometres north of Perth and 79 kilometres southwest of Tom Price. Paraburdoo was developed in the early 1970s to support Hamersley... |
Pilbara | 20 | 1990 |
| Christmas Creek mine Christmas Creek mine The Christmas Creek mine is an iron ore mine located in the Pilbara region of Western Australia, 61 kilometres south-south-west of Nullagine, in the Chichester Range.... |
FMG Fortescue Metals Group Fortescue Metals Group is an Australian iron ore mining company. The company has holdings of more than 87,000 km² in the Pilbara region of Western Australia making it the largest tenement holder in the state. It is listed as FMG on the Australian Securities Exchange .In 2008, the group loaded... |
Nullagine Nullagine, Western Australia Nullagine is an old goldrush town in Western Australia's Pilbara region. It is located on the Nullagine River 296 km south-east of Port Hedland and 1,364 km north-north-east of Perth on the old Great Northern Highway.... |
Pilbara | 16 | 2009 |
| Cloud Break mine Cloud Break mine The Cloudbreak mine is an iron ore mine located in the Pilbara region of Western Australia, 89 kilometres west-south-west of Nullagine, in the Chichester Range.... |
FMG | Nullagine | Pilbara | 28 | 2008 |
| Cockatoo Island mine | Cliffs Natural Resources | Cockatoo Island Cockatoo Island (Western Australia) Cockatoo Island is an island in the Buccaneer Archipelago off the coast of Western Australia near the town of Broome.Iron ore mining began at Cockatoo Island in 1951. BHP operated the mine in the early 1950s and ran it as a complete town site until 1984 when the ore body had been mined to sea level... |
Kimberley | ||
| Eastern Range mine Eastern Range mine The Eastern Range mine is an iron ore mine located in the Pilbara region of Western Australia, 10 kilometres south-east of Paraburdoo.The mine is partly owned and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara... |
Rio Tinto | Paraburdoo | Pilbara | 20 | 2004 |
| Hope Downs mine Hope Downs mine The Hope Downs mine is an iron ore mine located in the Pilbara region of Western Australia, 100 kilometres northwest of Newman.The mine is partly owned and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara... |
Rio Tinto | Newman | Pilbara | 30 | 2007 |
| Jack Hills mine | Crosslands Resources | Meekatharra Meekatharra, Western Australia Meekatharra is a town in the Mid West region of Western Australia. Meekatharra is an Australian Aboriginal word meaning 'place of little water'. At the 2006 census, Meekatharra had a population of 798, with 44.0% being Aboriginal.... |
Mid West | 2 | 2006 |
| Jimblebar mine Jimblebar mine The Jimblebar mine is an iron ore mine located in the Pilbara region of Western Australia, 41 kilometres east of Newman.The mine is fully owned and operated by BHP Billiton, and is one of seven iron ore mines the company operates in the Pilbara... |
BHP Billiton | Newman | Pilbara | 14 | 1989 |
| Koolan Island mine | Mount Gibson Mining | Koolan Island Koolan Island Koolan Island is an island off the Kimberley coast of Western Australia in the Buccaneer Archipelago. It is about 1,900 km north of Perth, and about 130 km north of Derby... |
Kimberley | 4 | 2007 |
| Koolanooka mine | Sinosteel Midwest Corporation | Geraldton Geraldton, Western Australia Geraldton is a city and port in Western Australia located north of Perth in the Mid West region. Geraldton has an estimated population at June 2010 of 36,958... |
Mid West | 2010 | |
| Koolyanobbing mine | Cliffs Natural Resources | Southern Cross Southern Cross, Western Australia Southern Cross is a town in Western Australia, 371 kilometres east of Perth on the Great Eastern Highway. It was founded by gold prospectors in 1888, and gazetted in 1890. It is the major town and administrative centre of the Shire of Yilgarn... |
Wheatbelt | ||
| Marandoo mine Marandoo mine The Marandoo mine is an iron ore mine located in the Pilbara region of Western Australia, 45 kilometres east of Tom Price.The mine is fully owned and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara. In the calendar year 2009, the combined... |
Rio Tinto | Tom Price | Pilbara | 15 | 1994 |
| Mesa A mine Mesa A mine The Mesa A mine, sometimes also referred to as Waramboo mine, is an iron ore mine located in the Pilbara region of Western Australia, 50 kilometres west of Pannawonica.... |
Rio Tinto | Pannawonica Pannawonica, Western Australia The town of Pannawonica is an iron-ore mining town located in the Pilbara region of Western Australia, near the Robe River, about 200 km south-west from Karratha... |
Pilbara | 25 | 2010 |
| Mesa J mine Mesa J mine The Mesa J mine is an iron ore mine located in the Pilbara region of Western Australia, 16 kilometres south-west of Pannawonica.The mine is owned by Robe River Iron Associates and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara... |
Rio Tinto | Pannawonica | Pilbara | 7 | 1994 |
| Mount Jackson Mount Jackson, Western Australia Mount Jackson is a hill in outback Western Australia located at . It is situated NNW of Koolyanobbing and NNE of Southern Cross. It is in the Shire of Yilgarn.... |
Cliffs Natural Resources | Mt Jackson | Esperance | 33 | 2010 |
| Mount Tom Price mine Mount Tom Price mine The Mount Tom Price mine is an iron ore mine located in the Pilbara region of Western Australia, near Tom Price.The mine is fully owned and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara. In the calendar year 2009, the combined Pilbara... |
Rio Tinto | Tom Price | Pilbara | 28 | 1966 |
| Mount Whaleback mine Mount Whaleback mine The Mount Whaleback mine is an iron ore mine located in the Pilbara region of Western Australia, 6 kilometres west of Newman.The mine is majority-owned and operated by BHP Billiton, and is one of seven iron ore mines the company operates in the Pilbara... |
BHP Billiton | Newman | Pilbara | 38 | 1968 |
| Nammuldi mine Nammuldi mine The Nammuldi mine is an iron ore mine located in the Pilbara region of Western Australia, 60 kilometres north-west of Tom Price.The mine is fully owned and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara... |
Rio Tinto | Tom Price | Pilbara | 6.6 | 2006 |
| Orebodies 18, 23 and 25 mine Orebodies 18, 23 and 25 mine The Orebodies 18, 23 and 25 mine is an iron ore mine located in the Pilbara region of Western Australia, 8 kilometres east of Newman.The mine is majority-owned and operated by BHP Billiton, and is one of seven iron ore mines the company operates in the Pilbara... |
BHP Billiton | Newman | Pilbara | ||
| Pardoo mine Pardoo mine The Pardoo mine is an iron ore mine located in the Pilbara region of Western Australia, 75 kilometres east of Port Hedland.The mine is fully owned and operated by Atlas Iron Limited and was, at the time of commencemenet of production, the company's only operational mine... |
Atlas Iron Atlas Iron Atlas Iron an Australian mining company and an iron ore explorer, developer and producer, predominantley active in the Pilbara region.The company operates two iron ore mines in Western Australia, the Pardoo mine, which opened in 2008, and the Wodgina mine, which opened in July 2010.-Company... |
Port Hedland Port Hedland, Western Australia Port Hedland is the highest tonnage port in Australia and largest town in the Pilbara region of Western Australia, with a population of approximately 14,000 .... |
Pilbara | 2.4 | 2008 |
| Paraburdoo mine Paraburdoo mine The Paraburdoo mine is an iron ore mine located in the Pilbara region of Western Australia, near Paraburdoo.The mine is fully owned and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara. In the calendar year 2009, the combined Pilbara operations... |
Rio Tinto | Paraburdoo | Pilbara | 20 | 1972 |
| Tallering Peak mine | Mount Gibson Mining | Mullewa Mullewa, Western Australia - External links :* *... |
Mid West | 3 | 2004 |
| West Angelas mine West Angelas mine The West Angelas mine is an iron ore mine located in the Pilbara region of Western Australia, 110 kilometres west of Newman.The mine is owned by Robe River Iron Associates and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara... |
Rio Tinto | Newman | Pilbara | 29.5 | 2002 |
| Wodgina mine Wodgina mine The Wodgina mine is an iron ore mine located in the Pilbara region of Western Australia, 90 kilometres south of Port Hedland.The mine is fully operated by Atlas Iron Limited and is the company's second operational mine, after Pardoo, which opened in 2008... |
Atlas Iron | Port Hedland | Pilbara | 4 | 2010 |
| Yandi mine Yandi mine The Yandi mine is an iron ore mine located in the Pilbara region of Western Australia, 90 kilometres north-west of Newman. It should not be confused with Rio Tinto's nearby Yandicoogina mine, which is also sometimes shortened to Yandi.... |
BHP Billiton | Newman | Pilbara | 41 | 1992 |
| Yandicoogina mine Yandicoogina mine The Yandicoogina mine, often shortened to Yandi, is an iron ore mine located in the Pilbara region of Western Australia, 95 kilometres north-west of Newman. it should not be confused with BHP Billiton's Yandi mine, which is located nearby.... |
Rio Tinto | Newman | Pilbara | 52 | 1998 |
| Yarrie mine Yarrie mine The Yarrie mine is an iron ore mine located in the Pilbara region of Western Australia, 90 kilometres north-east of Marble Bar.The mine is majority-owned and operated by BHP Billiton, and is one of seven iron ore mines the company operates in the Pilbara... |
BHP Billiton | Goldsworthy Goldsworthy, Western Australia Goldsworthy is a former mining town in Western Australia east of Port Hedland and located in the Shire of East Pilbara... |
Pilbara | 2 |
- 1 Majority-owner and operator shown only.
- 2 Location refers to nearest town, mines are not necessarly located at this town.
- 3 Capacity is the production capacity of the mine, as of 2010, not actual annual production, and is in million tonnes of iron ore per annum.
List of in-active and exhausted mines
This is a list of former iron ore mines in Western Australia:| Mine | Owner | Location | Region | Opening year | Closing year |
| Goldsworthy mine | Goldsworthy Goldsworthy, Western Australia Goldsworthy is a former mining town in Western Australia east of Port Hedland and located in the Shire of East Pilbara... |
Pilbara | 1966 | 1982 | |
| Nimingarra mine | BHP Biliton | Goldsworthy | Pilbara | 2007 | |
| Shay Gap mine | Shay Gap Shay Gap, Western Australia Shay Gap was an iron ore mining town in the Pilbara region of Western Australia, 1 574 km northnortheast of Perth and 188 km east of Port Hedland .... |
Pilbara | 1973 | 1993 |
Statistics
Annual statistics for the Western Australian iron ore mining industry:| Subject | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Production (million tonnes/annum) | 158.87 | 162.25 | 171.77 | 194.75 | 215.85 | 244.64 | 250.40 | 264.45 | 305.72 | 341.64 | |
| Production value (A$ billion) | 4.365 | 5.245 | 5.064 | 5.061 | 6.173 | 11.308 | 14.751 | 16.165 | 31.896 | 28.085 | |
| Employees | 8,604 | 9,103 | 9,289 | 11,184 | 12,585 | 13,727 | 16,203 | 18,387 | 23,185 | 26,051 |
External links
- Department of Mines and Petroleum website
- MINEDEX website Database of the Department of Mines and PetroleumDepartment of Mines and PetroleumThe Department of Mines and Petroleum is a department of the Government of Western Australia. The department was formed on 1 January 2009, out of the former Department of Industry and Resources and Department of Consumer and Employment Protection, which were split into three new departments, the...