Iron ore mining in Western Australia, in the 2018–19 financial year, accounted for 54 percent of the total value of the state's resource production, with a value of A$78.2 billion. The overall value of the minerals and petroleum industry in Western Australia was A$145 billion in 2018–19, a 26 percent increase on the previous financial year.
Western Australia's iron ore output for 2020–21 was 838.7 million tonnes, the second-highest figure after 2017–18. The bulk of Western Australian ore went to China, which imported 82% of 2021 production, followed by Japan and South Korea, with 6% each. The state has the world's largest reserves of iron ore with 29% of the world's iron ore, followed by Brazil with 19%, Russia with 15% and China with 12%.
In 2020–21 the Western Australian Government received A$9.8 billion in royalties from the iron ore mining industry in the state.
History
While the Pilbara iron ore deposits were known, such as the Mount Whaleback deposit discovered in 1957 by Stan Hilditch, it was not until 1960, when the Australian government lifted the embargo on iron ore exports that 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 tons 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 in the Pilbara, the Goldsworthy mine, was developed in 1965 by Mount Goldsworthy Mining Associates, a joint venture between the British-owned Consolidated Goldfields (Aust) Pty Ltd, Cyprus Mines Corporation of Los Angeles, and Utah Construction & Mining Company of San Francisco. A private railway line, the Goldsworthy railway, as well as port facilities at Finucane Island, Port Hedland, were also constructed. On 1 June 1966, the first shipment of iron ore from the Pilbara left on board the Harvey S. Mudd.
BHP's operations in Newman date back to 1968, when the Mount Whaleback mine was opened, the biggest single open-pit iron ore mine in the world. A new town, Mount Newman, was constructed, as well as a 426 kilometre railway line, the Mount Newman railway. The first train left Mount 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.
Overview
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$560 million 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 and BHP 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 seven, Fortescue two, all of those are located in the Pilbara region.
Railways
Pilbara region
The three largest iron ore producers operate private rail networks to transport ore from their mines to ports on the coast.
BHP 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 railways. The two lines terminate at Cape Lambert and Dampier.
FMG's Fortescue railway, a relative newcomer, 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.