Global iron and steel industries depend on iron ore as the primary raw material for steel production, which is essential for maintaining a strong industrial base. Just five of the more than 50 countries that mine iron ore account for 80% of the global production of this finite, natural resource.
Iron ore is a naturally occurring mineral substance extracted from the Earth’s crust. Its main use, 98% of iron ore, is to produce steel. Global output of steel, which stood at 1.8 billion tons in 2023, is predicted to be driven by growing demand, particularly in regions that have strong industrial and construction sectors.
The remaining 2% of mined iron ore is used for a variety of purposes, including powdered iron for specific types of steel, car components, and radioactive iron for medicine.
Around 50 nations mine iron ore. Approximately 80% of global production is attributed to five leading iron ore-producing nations.
Global iron ore statistics at a glance
- At least 922 iron ore mines are now in operation worldwide.
- The volume of usable iron ore production in 2023 was 2.5 billion tons.
- China receives about two-thirds of all iron ore exports worldwide, amounting to about 1 billion tons.
- The size of the iron ore market is estimated to have reached US$279 billion in 2023. By 2032, according to experts, this figure will grow to US$398 billion, representing a compound annual growth rate of 4%.
- In 2023, Asia Pacific held a market share of over 70% thus dominating the iron ore industry.
Iron ore in global development
As previously mentioned, iron is mainly used to produce steel which is the most prevalent metal in the world with many industries, including engineering, construction, automobile and machinery manufacturing, relying on it as the basic element.
The market is growing and mining companies are encouraged by the current demand for iron ore.
China remains by far the world’s greatest iron ore importer and one of its biggest exporters and the global iron ore market is heavily shaped by this country.
Data on global mine production of iron ore between 2015 and 2022
Source: USGS
Top 10 usable iron ore producers
Usable ore (or finished ore) is the end product of a mine, beneficiation, or agglomeration plant that is supplied to the consumer without any additional processing.
Collectively, the top five nations – Australia, Brazil, China, India, and Russia – account for over 80% of global output.
Source: U.S. Geological Survey, Mineral Commodity Summaries, January 2024
The three leading iron ore-mining countries
1. Australia
Usable ore production: 880 million metric tonnes (MT)
Almost all of this nation’s iron ore (98.9%) is produced in Western Australia, mainly in the Pilbara region.
With 51 billion MT or a global share of over 28%, Australia has the biggest deposits of crude ore and iron content globally. The Mount Newman joint venture is the country’s largest iron ore mine.
China is a major importer of Australian iron ore. In 2022, around 65% of the 1.1 billion MT of iron ore that China acquired came from Australia.
However, according to the Institute for Energy Economics and Financial Analysis (IEEFA), as of 2024, Australia’s iron ore export industry was facing serious challenges and faced a decrease in exports to China due to several reasons:
- China has reached its peak steel demand.
- China is focusing more on recycling steel which needs less iron ore.
- China is shifting to greener methods which necessitate higher grade iron ore whereas Australia produces mainly lower grade ore.
2. Brazil
Usable ore production: 410 million MT
Brazil produces 16% of the world’s total iron ore.
The two largest iron ore-producing states are Pará and Minas Gerais, which together account for 98% of the country’s annual production volume. The globe’s biggest iron ore mine – Vale’s Carajas mine – is located in Pará.
The major importer of Brazil’s iron ore is also China – of the 388 million tons that Brazil exported, around 64% went to the PRC.
3. China
Usable ore production: 380 million MT
The country may not be in the top spot in terms of iron ore production, but it is currently the biggest user of iron ore and the biggest producer of stainless steel in the world. China’s largest iron ore mine is the Dataigou Mine which is an underground facility in Liaoning.
Over the first eight months of 2024, the nation’s iron ore imports reached 814.95 million tons, which represented a 5.2% increase from 2023.
At the same time, in 2023, China’s iron ore exports rose by 2% compared to 2022, with the biggest share going to Japan.
Final word
Iron ore mining remains a highly profitable business despite the fact that more and more institutional and individual investors are avoiding mining stocks due to moral and environmental issues. However, iron ore plays a vital role in the growth of the global economy with Australia, China, and Brazil holding the top three positions in terms of exports.
