WA is the world's largest iron ore exporter for third successive year

28/4/97

For the third successive year, Western Australia was the world's largest exporter of iron ore, with shipments valued close to $3 billion.

And with the Pilbara now believed to offer the lowest price natural gas in the East Asian region, the pre-eminent position is set to continue, with opportunities to invest in value-adding projects to increase and become reality.

This good news on WA's multi-billion dollar iron ore industry will be presented today to the prestigious Metal Bulletin International Iron Ore Symposium in Berlin by Resources Development Minister Colin Barnett.

Mr Barnett was invited to be the international symposium's keynote speaker. Delegates include industry representatives from the European Union, Asia, the United States and Latin America, as well as most European purchasers of iron ore.

To coincide with Mr Barnett's presentation to the symposium, the Department of Resources Development has published the sixth edition of its commodity report Western Australian Iron Ore Industry Review.

The 64-page review focuses on the exciting iron ore and processing developments underway in WA.

The WA industry accounts for 14 per cent of world production and significantly, for the third successive year, is the world leader in exports with 34 per cent of seaborne trade. Last year, shipments totalled 134 million tonnes.

Mr Barnett said that iron ore exports from WA were dominated by three major producers. In 1996, BHP Iron Ore achieved a record year with shipments of 60 million tonnes, Hamersley Iron shipped 50 million tonnes and Robe River Iron Associates 23 million tonnes. A fourth producer, Koolyanobbing Iron-ore, accounted for 2.3 million tonne.

"Japan has consistently maintained its position as the major buyer of Australian iron ore," the Minister said.

"However, increased sales to the rapidly growing economies of China, Korea and Taiwan have underpinned increased production.

"The growth in export demand in Asia, combined with abundant reserves and cost advantages, should see the WA iron ore industry continue to expand.

"Production should continue to grow before stabilising at around 200 million tonnes a year. The challenge for the industry will be value-adding to attract higher prices to justify future development costs.

"With the cost of energy having fallen significantly since deregulation, the potential for new investment in value adding projects is extremely promising and opens a window of opportunity for WA to become a major exporter of DRI and even steel into East Asia."

The Western Australian Iron Ore Review also features articles on the four main mining companies, a global view of the iron ore industry, iron ore prices, changing products, future mining and major expansion projects planned for WA.

Copies of the report are available from the Department of Resources Development by phoning (09) 327 5555.

Media contact: Justine Whittome (09) 222 9699