Lyla Lindsey
Iron ore mining is a significant contributor to the economy of Western Australia, accounting for 54% of the state's resource production value in the 2018-19 financial year. The state possesses the world's largest reserves of iron ore, with deposits occurring in the Pilbara region being identified as early as the 1800s. The formation of these iron ore deposits in the Pilbara region is estimated to have occurred between 1.4 and 1.1 billion years ago, coinciding with the merging of different parts of Australia during the formation of a supercontinent.
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What You'll Learn
Iron ore deposits were identified in the 1800s
Iron ore deposits were identified in Western Australia in the 1800s. While these deposits were extensive, they were not mined until much later, as they were considered worthless without nearby coal. Small deposits east of Perth were mined around 1899, but the industry only began to evolve with later mining in the far north and the Pilbara region. From the mid-1800s, pearlers used ironstone from the beaches of Yampi Sound as ballast in their vessels.
The first significant iron ore production in Western Australia began in 1951 when Broken Hill Proprietary (BHP) was granted leases for known deposits at Cockatoo and Koolan Islands. BHP was later granted additional leases, including Koolyanobbing, in 1966, as part of an agreement to establish a steel rolling mill at Kwinana. Small-scale mining began on Koolan Island, an island off the Kimberly coast, in 1907, and large-scale mining was first attempted by the Yampi Sound Mining Company in the 1920s.
The development of the Goldsworthy mine in the Pilbara region, which began production in 1965, was a significant milestone in Western Australia's iron ore industry. The mine was developed by Mount Goldsworthy Mining Associates, a joint venture between British-owned Consolidated Goldfields (Aust) Pty Ltd, the Cyprus Mines Corporation of Los Angeles, and the Utah Construction & Mining Company of San Francisco. The opening of this mine, along with the construction of a private railway line and port facilities, marked the beginning of large-scale iron ore extraction in the region.
In the late 1960s, iron ore production in Western Australia increased significantly, generating enough wealth for the state to become financially independent. By the end of the decade, the Commonwealth government partially lifted an embargo on iron ore exports to Japan, further boosting the industry. By the 1970s, Western Australia was producing over 100 million tonnes of iron ore, and by the 1990s, this figure had increased to 150 million tonnes.
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Koolyanobbing supplied ore to a blast furnace from 1968 to 1982
Western Australia has the world's largest reserves of iron ore, accounting for 29% of the world's total iron ore production. Iron ore mining in the region has been ongoing since the late 1800s, with significant production beginning in 1951 when Broken Hill Proprietary (BHP) was granted leases to mine at Cockatoo and Koolan Islands. BHP was later granted additional leases, including Koolyanobbing in 1966, which was added as part of an agreement to establish a steel rolling mill at Kwinana.
Koolyanobbing, located in the Shire of Yilgarn, is one of Western Australia's oldest iron ore mines. Iron ore has been mined at Koolyanobbing since 1948, with a break in operations between 1983 and 1993. From 1968 to 1982, Koolyanobbing supplied ore to a blast furnace owned by BHP at Kwinana. During this period, Koolyanobbing was a subsidiary of BHP, operating under the Dampier Mining Company, which was established in 1965.
The closure of the Kwinana blast furnace in 1982 resulted in a suspension of iron ore mining at Koolyanobbing. Mining operations resumed in 1993 under Portman Mining, with the ore being exported via rail to Esperance. Koolyanobbing played a significant role in Western Australia's transition to standard gauge rail in the 1960s and was a key contributor to the state's prosperity and development as a global mining powerhouse.
In recent years, Koolyanobbing has faced challenges, and in 2024, Mineral Resources announced the closure of its Yilgarn operations, including the mine at Koolyanobbing, citing financial inviability. The final iron ore train departed Koolyanobbing in December 2024, marking the end of an era for the historic mine.
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The Goldsworthy mine was developed in 1965
Iron ore deposits were identified around Western Australia in the 1800s, but they were considered worthless without nearby coal. Small deposits east of Perth were mined around 1899, but the industry only began to evolve with later mining in the far north and the Pilbara. The explorer Francis Thomas Gregory reported seeing iron ore in the Goldsworthy region during his Pilbara explorations in late 1861, and the Government Geologist H.P. Woodward confirmed the discovery of iron ore there in 1890. In 1919, Government Geologist Andrew Gibb Maitland confirmed these deposits, but mining them was not economically viable at the time.
In 1938, Geological Survey of Western Australia geologists Kevin Finucane and Robert Telford surveyed Mount Goldsworthy and reported preliminary estimates of over 6,000,000 tons of iron ore at 65.66% iron. However, due to the classification of iron as a strategic material, the Commonwealth of Australia embargoed its export in the lead-up to World War II. The embargo was partially lifted in 1960, and competition to develop the Goldsworthy mine began.
Goldsworthy, named after Mount Goldsworthy, was a pivotal mining town in the Pilbara region with a rich history of iron ore operations. In its prime during the 1960s and 1970s, it symbolised opportunity and industrial progress, marking the beginning of large-scale iron ore mining in the region. The town was designed to support mining operations at the nearby Mount Goldsworthy mine, one of the first large-scale iron ore mines in the Pilbara.
The success of Goldsworthy opened the door for the Pilbara region to become one of the world's leading iron ore exporters. Western Australia has the world's largest reserves of iron ore, contributing 29% of the world's total iron ore production. Iron ore mining has grown into a massive industry over the past fifty years, with overall production reaching 20 million tonnes per year in 1968 and steadily increasing to 719 million tonnes in 2015.
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The world's largest iron ore deposits are in the Pilbara region
Western Australia has the world's largest reserves of iron ore, accounting for 29% of the world's total iron ore. The state's iron ore industry is worth $78.2 billion, with the bulk of its ore exported to China, Japan, and South Korea.
The Pilbara region in Western Australia is home to the world's largest and most economically significant iron ore deposits. The most sought-after ore in the region is an iron oxide called hematite, which in its purest form contains 69.9% iron. Hematite is one of the most commonly targeted forms of iron oxide for mining, constituting 96% of Australia's iron ore exports.
The Pilbara's iron ore deposits were formed 1.4 to 1.1 billion years ago, according to a recent study. The region's iron oxide content was enhanced by massive geological changes, such as the breaking up and smashing together of continents. The exact timeline of the formation of these iron ore deposits has been debated for decades, with estimates ranging from 2.5 billion to 541 million years ago.
The discovery of these iron ore deposits has significant economic implications, with the deposits valued at up to $5.775 trillion USD. The deposits have also sparked interest in future prospecting efforts, with geologists using isotopic dating and chemical analysis to guide their search.
The major iron ore producers in the Pilbara region include BHP, Rio Tinto, Fortescue Metals Group, and Roy Hill. These companies operate private rail networks to transport ore from their mines to ports on the coast. The iron ore mining boom in the Pilbara has had mixed effects on the local communities, with increased economic activity but also negative impacts on tourism and the environment.
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Iron ore is Western Australia's largest mineral employer
Western Australia has the world's largest reserves of iron ore, with 29% of the world's total. The state's iron ore output for the 2020-21 financial year was 838.7 million tonnes, the second-highest figure after 2017-18. The bulk of Western Australia's iron ore exports go to China, which imported 82% of the state's production in 2021. Japan and South Korea are also significant importers, each receiving 6% of the state's iron ore exports in the same year.
The iron ore industry in Western Australia has grown significantly over the past five decades. Overall production increased from 20 million tonnes in 1968 to 719 million tonnes in 2015. The industry was valued at around AUD 48.4 billion in 2015-16, providing royalties of approximately AUD 3.5 billion to the state government. In 2020-21, the Western Australian Government received AUD 9.8 billion in royalties from the iron ore mining industry.
The major iron ore producers in Western Australia include BHP, Rio Tinto, Fortescue Metals Group (FMG), and Roy Hill. These companies operate mines, port terminals, and rail networks in the Pilbara region, which is home to the world's largest and most economically significant iron ore deposits. The Pilbara region's iron ore deposits were formed between 1.4 and 1.1 billion years ago and are composed of iron oxide minerals, with hematite being the most sought-after ore in the region.
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Frequently asked questions
Iron ore is the state's largest mineral employer, accounting for 17% of gross state product and 57% of the value added by the mining industry. Iron ore also accounted for 75% of Western Australia's royalties in 2018-19.
The major iron ore producers in Western Australia include BHP Billiton, Rio Tinto, Fortescue Metals Group (FMG), and Roy Hill.
According to a study published in the Proceedings of the National Academy of Sciences, the iron ore deposits in the Pilbara region of Western Australia were formed between 1.4 and 1.1 billion years ago.
