Australia’s iron ore exports to hit record US$104 billion as global steelmaking recovers after coronavirus downturn

Iron ore shipments are expected to rise from 900 million tonnes in 2020–21 to 1.1 billion tonnes by 2025–26

Australia’s most valuable economic export is expected to earn more than A$100 billion per year for the next half decade as miners like BHP Group, Rio Tinto and Fortescue dig out more iron ore from Western Australia’s Pilbara region

Reading Time:2 minutes

Iron ore shipments are expected to rise from 900 million tonnes in 2020–21 to 1.1 billion tonnes by 2025–26, as the country expects to retain its dominant market share even as Brazilian supply recovers. Photo: Reuters

Published: 12:51pm, 29 Mar 2021Updated: 12:51pm, 29 Mar 2021

Australia expects to log a record A$136 billion (US$104 billion) from iron ore exports this financial year, as global steelmaking recovers after a coronavirus-led downturn, a government report showed on Monday.

The country’s most valuable economic export is expected to earn more than A$100 billion per year for the next half decade as miners like BHP Group, Rio Tinto and Fortescue dig out more iron ore from Western Australia’s Pilbara region.

Further out, gains from the export of new energy materials like copper, lithium and nickel are expected to offset lower contributions from thermal coal, according to the report by the Department of Industry.

Iron ore shipments are expected to rise from 900 million tonnes in 2020–21 to 1.1 billion tonnes by 2025–26, as the country expects to retain its dominant market share even as Brazilian supply recovers.

China’s push into Guinea is under way, with Rio Tinto now reviewing infrastructure costs that include port connections and more than 600km of railway, it said. Full production is not expected before 2027 or 2028.