Country Report

Australia iron ore supply summary

17 September 2018

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17 September 2018

Australia iron ore supply summary

Report summary

Australia is the largest supplier of iron ore into the seaborne export market. It is dominated by three major producers; BHP Billiton, FMG and Rio Tinto who account for 87% of total ore produced. Australia's mining costs are the second lowest worldwide due to a combination of large scale operations that afford economies of scale, high grade material that requires little to no beneficiation, and owner-operated infrastructure. We are forecasting a small rise in C1 costs to US$16.70 in 2018 mainly due to higher fuel prices but these will be largely offset by ongoing productivity gains as automation on sites is extended. Total cash costs are expected to rise again due to higher royalty and freight charges. While costs will rise gradually over the next few years they will remain low with most internal cost cutting initiatives, sustainable.

Executive summary
Location maps
Key companies
- Attributable marketable production by company
Geology
- Pilbara region
- Other Western Australia
- South Australia
Quality
- Product Fe grade 2018
Reserves and resources
Production
- Marketable production by product type
Infrastructure
- Port export capacity
Costs
- Cash costs
  - Value-in-use adjusted cost curve 2018 (CFR China, 62% Fe fines equivalent))
  - Cash costs by key company
- Capital costs
Margins
Fiscal terms
- Fiscal terms

Tables and charts

This report includes 22 images and tables including:

Australia iron ore producing regions
Raw Fe grade 2018
Attributable marketable reserves by company (at 01/01/2018)

Average operating margin (US$/tonne)
Key companies: Image 1
Seaborne export cash cost by operator 2018 (CFR China, 100% basis, unadjusted for quality)
Geology: Image 1
Geology: Image 2
Geology: Image 3
Quality: Image 2
Product impurities - alumina and silica 2018
Production: Image 1
Costed production by status
Infrastructure: Image 1
Infrastructure: Image 2
Infrastructure: Image 3
Infrastructure: Image 4
Capital costs
Fiscal terms: Table 1
Costs: Image 1
Costs: Image 2
Cash costs