Iron Ore

Previous Years’ Reviews

Iron Ore - 2011 Annual Review and Outlook

  • Highlights
    • Steel prices steadily deteriorated during 2011. The price of the key industrial commodity used to make steel, iron ore, also decreased as demand declined against the backdrop of a weakening Chinese economy and the fallout from the European debt crisis. Steel mills cut iron ore purchases as production was curbed, while major iron ore producers such as BHP Billiton Ltd. and Rio Tinto PLC moved forward with plans to ramp up output. The combination of lower demand and increased supply put pressure on iron ore prices. Despite a challenging year for iron ore producers, many large mining firms invested billions of dollars to expand existing deposits and bring new large projects on stream. With the increased investment in expansions, iron ore producers are hoping for a strong steel market in the future.
    • Canadian shipments of iron ore decreased 7.2% from 36.2 million tonnues (Mt) in 2010 to 33.6 Mt in 2011. During the same period, Canada’s total exports of iron ore increased only 4.1% from 32.5 Mt in 2010 to 33.8 Mt in 2011, while imports decreased by 12.3% from 8.1 Mt in 2010 to 7.1 Mt in 2011.
    • The Iron Ore Company of Canada (IOC), a subsidiary of Rio Tinto PLC, announced that its 2011 production of concentrates and pellets was down by 8.5% from the previous year, and that its sales volume had dropped by 13.0%. Phase 1 of IOC’s concentrator expansion project, which is expected to raise its production capacity to 22 million tonnes per year (Mt/y), was commissioned as planned. Phase 2 of the project, aimed at improving the magnetite recovery circuit, is progressing with first production expected in late 2012.
    • Iron ore from Labrador Iron Mines Limited’s James mine was transported, through a confidential sales contract with IOC, by rail from the Silver Yards plant site via the Tshiuetin Rail Transportation Inc. (TSH) railway and the Quebec North Shore and Labrador Railway Company Inc. (QNS&L) railway to the Port of Sept-Îles. Approximately 411 987 wet tonnes (t) (386 000 dry t) were sold in 2011 to IOC. In addition to these shipments, approximately 187 000 wet t of additional iron ore were being held in inventory at the Port of Sept-Îles for shipping in 2012.
    • Huldra Silver Inc. announced it had entered into a definitive strategic acquisition agreement, dated March 30, 2011, with Craigmont Holdings Ltd., the shareholders of Craigmont Mines Ltd. The Craigmont mine is located 14 kilometres (km) northwest of Merritt, British Columbia, and is wholly owned by Christopher James Gold Corp. Craigmont Mines is a major producer and supplier of specialty magnetite (Fe3O4) products.
    • In May 2011, ArcelorMittal Mines Canada announced it had launched an investment program to increase its production from 14 Mt/y to 24 Mt/y by 2013. This investment program is currently being implemented. Pre-feasibility and feasibility studies will now be commissioned to increase production to 30 Mt/y.
    • In early 2012, New Millennium Iron Corp. announced that its joint-venture partner, Tata Steel Minerals Canada (TSMC) Limited, had entered into a life-of-mine Confidential Rail Transportation Contract and Locomotive Rental Agreement with QNS&L, a wholly owned subsidiary of IOC, for the transportation of iron ore products from the Direct Shipping Ore (DSO) project, owned by TSMC, from Emeril Junction in Newfoundland and Labrador to Arnaud Junction in Sept-Îles, Quebec. Construction on the DSO project in the Mehihek area has started, and the company is expecting first production in 2012. A feasibility study for the Labmag project is also being completed.
    • On May 12, 2012, Cliffs Natural Resources Inc. and Consolidated Thompson Iron Mines announced the official closing agreement of the $4.9 billion acquisition of the Bloom Lake mine and all of its assets. In addition, a number of crusher, dryer, and other equipment outages at the Bloom Lake and Wabush mines resulted in a lack of pellet availability, which caused Cliffs’ eastern Canadian operations to incur higher production costs.
  • Canadian Production
  • Canadian Developments
  • World Production
  • World Developments
  • Markets and Prices
  • Trade
  • Outlook

Iron Ore - Other Information

  • Introduction
  • History of Iron Ore Mining in Canada
  • Uses
  • Health and the Environment
  • Other Sources of Information

Maps/Graphs

  • Figure 1. Canadian Iron Ore Mining Operations and Advanced Projects, 2011
  • Figure 2. Canadian Iron Ore Statistics and Trends, 1989-2011
  • Figure 3. Canadian Agglomerated Export Markets, By Region, 2011
  • Figure 4. Canadian Non-Agglomerated Export Markets, By Region, 2011

Statistical Tables

  • Tariffs
  • Table 1. Canada, Iron Ore Production and Trade, 2009-11
  • Table 2. Iron Ore World Production, Shipments, Gross Weight, by Country, 2008-10
  • Table 3. World’s Largest Producers of Iron Ore, as of January 2011
  • Table 4. World Iron Ore Price Trend, f.o.b. Australian Port, 2001-11
  • Table 5. China’s Iron Ore Imports, by Country of Origin, 2010 and 2011

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