Iron ore is the source of primary iron for the world’s iron and steel industries. It is therefore essential for the production of steel, which in turn is essential to maintain a strong industrial base. Almost all (98%) iron ore is used in steel making. Iron ore is mined in about 50 countries.

The 7 largest of these producing countries account for about 75% of total World production. Australia and Brazil together dominate the World’s iron ore exports, each having about 33% of total exports.

World Mine Production and Reserves: The mine production estimate for China is based on crude ore, rather than usable ore, which is reported for the other countries.

The iron ore reserve estimates for Australia, Kazakhstan, and Ukraine have been revised based on new information from those countries.

Mine                                        Production                                                     Reserves

2010    2011e                                           Crude ore  Iron content

United                                        50    54                                                    6,900      2,100
Australia                                    433 480                                                  35,000     17,000
Brazil                                        370 390                                                  29,000      16,000
Canada                                       37   37                                                   6,300        2,300
China                                      1,070 1,200                                               23,000       7,200
India                                          230 240                                                    7,000       4,500
Iran                                             28   30                                                    2,500       1,400
Kazakhstan                                 24   24                                                    3,000        1,000
Mauritania                                   11   11                                                    1,100           700
Mexico                                       14    14                                                      700           400
Russia                                      101  100                                                   25,000     14,000
South Africa                                59    55                                                     1,000          650
Sweden                                       25   25                                                      3,500       2,200
Ukraine                                       78    80                                                      6,000      2,100
Venezuela                                   14   16                                                       4,000      2,400
Other countries                            48    50                                                     12,000     6,000

World total (rounded)                2,590 2,800                                                  170,000    80,000

World Resources: US resources are estimated to be about 27 billion tons of iron contained within 110 billion tons of ore. US resources are mainly low-grade taconite-type ores from the Lake Superior district that require beneficiation and agglomeration prior to commercial use. World resources are estimated to exceed 230 billion tons of iron contained within greater than 800 billion tons of Crude Ore.

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Substitutes: The only source of primary iron is iron ore, used directly, as lump ore, or converted to briquettes, concentrates, pellets, or sinter. At some blast furnace operations, ferrous scrap may constitute as much as 7% of the blast furnace feedstock. Scrap is extensively used in steel making in electric arc furnaces and in iron and steel foundries, but scrap availability can be an issue in any given year. In general, large price increases for lump and fine iron ores and iron ore pellets through mid-2009 were commensurate with price increases in the alternative—scrap. The ratio of the US import price of scrap to the US import price of iron ore decreased in Y 2011, causing the relative attractiveness of scrap compared to iron ore to increase to levels similar to those of Y 2009. The ratio of imported scrap to imported iron ore price in Y 2011 is the lowest it has been in the past 10 yrs.

e Estimated. E Net exporter.

(Data in million metric tons of usable ore unless otherwise noted)

Source: US Geological Survey, Mineral Commodity Summaries, January 2012 (updated 27 February 2012)