Iron Ore — Are we Missing an Investment Opportunity - Another Myth Buster - The Current Narrative According to Samso?
- Noel Ong
- 1 hour ago
- 37 min read
This Samso Insight argues that the current market narrative around a major iron ore price decline, driven by the start-up of the Simandou Iron Ore Project in Guinea, may be overstated. While Simandou is a significant high-grade development, its forecast production needs to be considered against the scale of global iron ore supply and the long history of demand growth tied to steelmaking.
The article places this discussion in historical context by tracing iron ore consumption through crude steel production since the 1960s, showing that the iron ore story has always been shaped by industrial growth, infrastructure build-out, and the ability of major producers to deliver reliable, scalable supply chains.
The key conclusion is that iron ore should not be viewed simply as a commodity facing oversupply, but as a sector entering a new stage of differentiation. The article highlights that the future of iron ore will increasingly depend on product quality, logistics, and suitability for cleaner steelmaking pathways.
In that sense, the real investment shift may not be about whether Simandou adds more tonnes to the market, but whether producers can supply the higher-grade feedstocks needed for Direct Reduction Iron and lower-emission steel production.
The concluding view is that the iron ore market is in transition rather than decline. Global steel output remains near historically high levels, demand may shift geographically rather than disappear, and the rise of decarbonisation is creating a new premium segment for magnetite projects capable of producing Direct Reduction-grade concentrate and pellets.
In supporting the narrative of a transition to cleaner DIR pellets, China is now deploying commercial DRI facilities.
For investors, this means the more important story may not be short-term fear around Simandou, but identifying which companies and ore bodies are best positioned for the next phase of the iron ore business.
To help readers navigate through the Samso Insight, a content list is provided below.
Content
1.0 Introduction – Are Iron Ore Investments A Sunset Industry or Are We Being Fed The Red Herring.
Investors in the iron ore sector are currently being told to brace for a softerning in global iron ore pricing as the giant Simandou Iron Ore mine ships its first shipment of high grade ore. The street talk is that the imminent 120 million tonnes per annum production coming out of Guinea is going to drive iron ore pricing to the sub USD $80 to $90 per tonne.
Market analysts have largely accepted this situation, as the dominant conversation centers on the influx or "glut" of ore "flooding" the market. To me, this is reminiscent of past experts who predicted the decline of oil and gas, the continuous rise of lithium and cobalt, and the fall of gold in 1999 when its price dropped from USD $428 to below USD $240. I recall experts at that time claiming that gold would just become another commodity.
Figure 1: Historical Gold Price Chart. (source: Macrotrends.net)
For those readers who remember that moment in 1999, you would have thought that there must be some truth in those headlines, but as you can see in Figure 1, that was a mere bump in the road to the current gold price in February 2026. Check this site out, it has a good summary of the gold price movement for the last several decades: Best Brokers
I remember in 2018, gold price was about to fall below USD $1000 and there was also a series of conversations of the oncoming dark clouds of a depressing gold price. Again, that was just another bump in the road. So is this current discussion with the iron ore price another bump in the road? Are we going to see a new era of a lesser iron ore pricing?
2.0 Global Consumption of Iron Ore
Iron Ore Consumption Since the 1960s — and When the Giants Stepped In
When discussing "iron ore demand," people typically refer to steel demand. Iron ore is the essential feedstock for primary steelmaking, and nearly all iron ore (around 98%) is used for steel production.
For a clear and consistent timeline from the 1960s onward, the most dependable long-term indicator is world crude steel production, which serves as a strong proxy for iron ore consumption trends.
What follows is a Samso-style overview of the past ~65 years: how the world's appetite expanded, why it evolved over time, and how the major producers (along with the modern export system) developed capacity to meet this demand.
I discovered an excellent chart by Own Analytics (Figure 2) that I believe will complement the details described below. Owen Analytics has illustrated the volatility of iron ore pricing over the decades and how various events have influenced pricing.
Figure 2: The Owen Analytics chart showing the share prices of the big three iron ore miners/exporters – BHP, RIO and Fortescue (FMG) and that of iron ore. Their share prices have been scaled in order to show them on the one chart. (source: Owen Analytics)
In this Samso Insight, the key events influencing iron ore prices highlight why investors should carefully consider the current state of the iron ore market. While the common belief suggests a slowdown in pricing, I believe there are strong reasons to think the impact of Simandou might be exaggerated.
Let's explore the Samso Insight to determine if the global trend of selling in anticipation of lower iron ore prices is actually a strategic move by the market to encourage others to sell while they themselves are buying for long-term positions.
Consider this: in 2024-2025, the average global annual production of iron ore was approximately 2,490 MT, and in the future, Simandou is expected to reach a peak of about 120 MT annually. If they were to boost their production to 120 MT per year today, it would only represent about 4-5% of global production (a rough estimate).
Figure 3: China Steel Output vs. Steel product exports. (source: Reuters)
The speed at which Simandou reaches its maximum production is a significant factor. Although reaching the target of 120 MT per annum is an objective, any delays or operational disruptions that hinder achieving this level will lend more credibility to my views on Simandou's impact on global iron ore production.
Assuming that consumption will increase over time and that the Chinese economy (Figure 3) will eventually resume its growth towards a forward-moving GDP, any new production will most likely simply be absorbed. Narratives forget that the whole world is still progressing and the consumption is always going to be increasing and deleption of ore is also always going to be increasing.
For me, this is a very simplistic explanation of why I believe that the output from Simandou will naturally be consumed and not be a real significant hurdle for the iron ore price. Depletion from existing mines, which is a strong candidate for a decrease in future supply, will definitely contribute negatively to the global production versus consumption balance.
My thoughts: the price of iron ore is unlikely to be depressed; if anything, it will remain at a sustainable level, with some volatility, and has a good chance of rising in the medium term, likely after the Chinese New Year period.
Before we convince each other, let's look through some market facts that the internet cans provide for us.
The Consumption Story (1960s → Today), Told Through Steel
World crude steel production (million tonnes): Figure 4
Figure 4: Work Steel production since 1960. 1960: 347 MT -1970: 595 MT - 1980: 717 MT - 1990: 770 MT - 2000: 850 MT - 2005: 1,148 MT - 2010: 1,435 MT - 2015: 1,626 MT - 2020: 1,883 MT - 2024: 1,885 MT. The tonnage are an approximation from a search on google.
Looking at Figure 2, you can see the narrative illustratively but it's a good addition to the visualisation if you consider the details listed below:
1960–1970: rapid industrial build-out (post-war rebuild + manufacturing expansion).
1970–1990: slows and flattens (oil shocks, recessions, and mature-economy saturation).
2000–2020: the modern super-cycle (China-led urbanisation and infrastructure build).
2020–2024: high plateau (still huge volumes, but no longer the same growth engine).
3.0 Decade-by-Decade: What Drove the Iron Ore Appetite?
Figure 4 is a good chart to follow as you go through this section.
3.01 1960s — The export era switches on
This decade is the “start gun” for the modern seaborne iron ore trade, especially for Australia. In 1960, Australia partially lifted an iron ore export ban that had been in place since 1938—one of those policy pivots that looks obvious in hindsight. On the consumption side, global crude steel output moved from 347 Mt (1960) to 456 Mt (1965), reflecting accelerating industrial demand.
3.02 1970s — Growth continues, then energy shocks bite
Steel production rises to 595 Mt (1970) and 644 Mt (1975), but the growth rate slows as oil shocks and inflation reshape heavy industry economics. This is also when Japan’s role as a premium buyer of seaborne ore becomes structurally important (long-term contracting culture, reliability, and quality discipline), shaping how producers think about scale and consistency.
3.03 1980s — Mature economies plateau; Brazil’s next chapter ramps
World crude steel is basically flat: 717 Mt (1980) and 719 Mt (1985). But the supply system keeps professionalising and expanding. A major marker here is Vale’s Carajás region, where Vale notes it has been mining iron ore in the area since 1985 (a key turning point in Brazil’s scale and grade advantage).
3.04 1990s — A long pause before the surge
World crude steel is 770 Mt (1990) then 753 Mt (1995)—a decade where demand growth is real but not explosive. This is the era where efficiency, blending, and supply-chain reliability become increasingly valuable. The “big mining” model (large hubs, integrated rail/port, tight product specs) proves it can outcompete a fragmented supply base.
3.05 2000s — The super-cycle: steel becomes a global volume game
Steel production jumps from 850 Mt (2000) to 1,148 Mt (2005). This is the decade that rewired iron ore thinking:
volume security becomes strategic;
pricing mechanisms evolve (from annual benchmark norms toward more market-linked approaches);
and miners invest like the market will be big forever.
3.06 2010s — China dominates; the system industrialises further
Steel hits 1,435 Mt (2010) and rises through the decade to the 1.8+ Bt level. By now, the iron ore market is less about “finding customers” and more about:
keeping trains and ports running,
matching product to mill blends,
and managing grade/sinter/pellet strategies.
3.07 2020s — Plateau signals + regional shift
World crude steel is basically at a high plateau: 1,883 Mt (2020) and 1,885 Mt (2024). Recent reporting also points to a key transition theme: China appears to have passed peak steel, while developing Asia continues to grow, which can change where iron ore demand growth comes from—even if global volumes remain enormous.
4.0 Timeline: Consumption Milestones + When Major Producers Stepped Into The Iron Ore Game.
Table 1: Here’s a combined timeline (demand proxy + producer milestones) to make it easy to reference.
Period | Demand proxy (world crude steel) | Producer “involvement” milestones (how the giants entered / scaled) |
1960 | 347 Mt | Australia partially lifts iron ore export ban (policy unlock) |
1966 | (mid-60s growth) | Rio Tinto notes its first Pilbara shipment from Mount Tom Price in 1966 |
1969 | (approaching 1970 peak) | BHP marks 1969 as first railing + first shipment from the Mt Newman Project (Mt Whaleback / Port Hedland) |
1970 | 595 Mt | Pilbara system proves repeatable at scale (rail + port + long-term Asian contracting) |
1980–1985 | 717–719 Mt | Vale’s Carajás mining era begins (Vale references mining since 1985) |
1990–1995 | 770 → 753 Mt | Majors consolidate “hub” thinking: product quality, blending, port optionality, and reliability become competitive moats |
2000–2005 | 850 → 1,148 Mt | China-driven demand shock forces multi-year capital programs across Australia & Brazil |
2010 | 1,435 Mt | Market becomes structurally seaborne-volume dominated; miners optimise for throughput + consistency |
2024 | 1,885 Mt | New narrative: China output appears past peak; growth shifts toward developing Asia |
5.0 The “Major Producer Involvement” Point That Often Gets Missed
A useful way to frame producer involvement isn’t just “who existed,” but who built export systems that could scale:
Australia (Pilbara) became the blueprint for integrated iron ore exports: mine → rail → port → Asia, enabled by the 1960 export policy shift and then executed through the first shipments in the mid-to-late 1960s.
Brazil (Carajás) reinforced the other pillar of global supply: very large scale with quality advantages, with Vale referencing operations in Carajás since 1985.
Over time, the market migrated from a “many suppliers” feel to a system where a small number of huge, operationally disciplined exporters set the reliability standard.
6.0 The Top 10 Global Iron Ore Projects
6.01 Rio Tinto – Pilbara iron ore system (Australia)
Tonnes mined per year: ~330–340 Mtpa (operating capacity)
Typical product grade: ~61–62% Fe
Mine life remaining: 20+ years (continuously extended via replacement hubs)
One of the aspects of the Rio Tinto operations in the Pilbara is the longevity of their operations. For example, the Paraburdoo region is one of the longest running iron ore operations in their Western Australian operations having started production in 1972 (Figure 5).
Figure 5: A large haulpak working in Rio Tinto's operations in the Paraburdoo region in Western Australia. (source: RioTinto)
The most recognisable iron ore operations in the Pilbara that Rio Tinto operates is the Mount Tom Price operations (Figure 6). The Mount Tom Price mine is located in the Pilbara region of Western Australia, near the town of Tom Price.
The mine is fully owned and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara. In 2009, the combined Pilbara operations produced 202 million tonnes of iron ore, a 15 percent increase from 2008.
Figure 6: The Mount Tom Price operations. (source: Wikipedia - By Bäras - Own work, CC BY-SA 3.0)
The Pilbara operations accounted for almost 13 percent of the world's 2009 iron ore production of 1.59 billion tonnes. Figure 7 below shows the Rio Tinto operations as of 2023.
Figure 7: Pilbara miners produced over 800 billion tonnes of iron ore in the 2020-21 financial year, with Western Australia accounting for 98% of the country’s total iron ore reserves. These products included over $100bn (A$150bn) worth of iron ore exports, and generated $103.3bn (A$154bn) in sales, up from $42.7bn (A$64bn) in 2016-17. (source: Mine Australia - Credit: Peter Christener via Wikimedia)
The Hamersley Range, where the mine is located, contains 80 percent of all identified iron ore reserves in Australia and is one of the world's major iron ore provinces. (source: Wikipedia)
6.02 BHP – Western Australia Iron Ore (WAIO)
Tonnes mined per year: ~330 Mtpa (operating system capacity)
Typical product grade: ~61–62% Fe
Mine life remaining: 20–30+ years (portfolio of mines)
The BHP operations are just as extensive in the Pilbara and a type example of the iron ore operations is that of the Mount Whaleback mine, officially the Newman West operation and is located in the Pilbara region of Western Australia, six kilometres west of Newman.
The mine is majority-owned (85 per cent) and is one of five iron ore mines the company operates in the Pilbara.
Figure 8: The Mount Whaleback iron ore mine. The Mount Whaleback deposit was discovered in 1957 by Stan Hilditch but not publicised until 1960, when the Australian Government lifted the embargo on iron ore exports it had put in place because of concerns the mineral was in short supply. (source: Wikipedia - By Graeme Churchard from Bristol (51.4414, -2.5242), UK - Uploaded by PDTillman, CC BY 2.0 )
The story of iron ore mining around Newman begins in 1968, when BHP opened the Mount Whaleback Mine in the heart of the Pilbara. At the time, this was a defining moment for Australia’s iron ore industry. Mount Whaleback would become the largest single open-pit iron ore mine in the world.
The mine itself is immense (Figure 8). The pit is around 1.5 kilometres wide and stretches more than five kilometres in length. Over time, the operation has continued to deepen, with the final design expected to reach roughly half a kilometre below surface. The scale of the deposit and the mining operation helped establish Newman as one of the key centres of iron ore production in the Pilbara (Figure 9).
Figure 9: The location of the town of Newman to the Mt Whaleback mine - 2020. (source: Wikipedia - By NASA Earth Observatory image by Lauren Dauphin)
Developing Mount Whaleback required more than just building a mine. A new township was established to support the workforce, and the town of Newman grew alongside the project. To move the ore to the coast, BHP constructed the 426-kilometre Mount Newman Railway linking the mine to port facilities on the Pilbara coast (Figure 7).
Operations moved quickly once the infrastructure was in place. The first train carrying iron ore left Newman on 1 January 1969, marking the beginning of large-scale shipments from the Pilbara. Only a few months later, on 1 April 1969, the first cargo of Newman ore was loaded onto the vessel Osumi Maru for export.
In those early years, Newman was operated as a closed company town, a common model for remote mining developments at the time. This arrangement remained in place until 1981, when the town opened up and evolved into the regional mining centre it is today.
For anyone looking at the development of the Pilbara iron ore industry, the opening of Mount Whaleback and the creation of Newman marked the beginning of what would become one of the most significant iron ore production regions in the world.
6.03 Vale – Carajás Northern System (Brazil, incl. S11D)
Tonnes mined per year: ~230 Mtpa (operating + ramp-up capacity)
Typical product grade: ~65–67% Fe
Mine life remaining: ~25–40 years
The Carajás Northern System is the largest and most important iron ore production hub operated by Vale in northern Brazil. The operations are located in the Carajás Mineral Province in the state of Pará, one of the richest iron ore regions in the world.
Figure 10: The Serra Norte iron ore mining area is part of Vale’s Northern System, and is located in the municipality of Parauapebas, which is in the state of Pará, in northern Brazil. The N4W, N4E and N5 mines are currently operating, generally referred to as the Carajas mining complex.
The Carajás system contains some of the highest-grade iron ore deposits globally, typically averaging around 65% Fe, which allows Vale to produce premium lump and fines products with relatively low levels of impurities such as silica and alumina. These characteristics make Carajás ore particularly suitable for efficient steelmaking and lower emissions in blast furnace operations.
Mining at Carajás began in the mid-1980s, and the region has since developed into a large integrated mining system consisting of multiple open-pit mines, beneficiation plants, rail infrastructure, and export terminals. The Northern System is the largest of Vale’s three main Brazilian iron ore systems and contributes the majority of the company’s total production.
The S11D Operations.
A major expansion of the Carajás operations came with the development of the S11D Eliezer Batista Complex, which began production in 2016. The S11D project is one of the largest iron ore developments ever built and significantly increased Vale’s capacity in the region.
Figure 11: A conveyor belt transports iron ore at the Vale S11D mine in Parauapebas, Para state, Brazil. (source: Bloomberg - Photographer: Dado Galdieri/Bloomberg)
The project is notable for its “truckless” mining system, where ore is transported from the pit to the processing plant using conveyor belts rather than traditional haul trucks. This approach reduces fuel consumption, operating costs, and environmental impacts.
S11D has a designed production capacity of around 90 million tonnes of iron ore per year, making it one of the largest individual iron ore mining projects in the world. The ore from S11D is also exceptionally high grade, typically above 65% Fe, reinforcing the premium product profile of the Carajás system.
Key Facts – Vale Carajás Northern System
Location: Carajás Mineral Province, Pará State, Brazil
Operator: Vale S.A.
Main deposits: Carajás mines including the S11D complex
Ore grade: typically around 65% Fe
S11D capacity: ~90 million tonnes per year
Transport: Estrada de Ferro Carajás railway (~890 km)
Export port: Ponta da Madeira terminal (São Luís)
One of the largest and highest-grade iron ore mining systems in the world
6.04 Fortescue – Pilbara iron ore operations (Australia)
Tonnes mined per year: ~200–220 Mtpa (operating capacity)
Typical product grade: ~56–59% Fe (improving with higher-grade replacement ore)
Mine life remaining: 20+ years
The iron ore operations of Fortescue are located in the Pilbara and form one of the largest iron ore production systems in the world. Since the company’s first shipment in 2008, Fortescue has grown from a new entrant in the Pilbara into the third major iron ore producer in the region, alongside Rio Tinto and BHP.
Figure 12: A schematic diagram highlighting the iron ore hub for Fortescue Resources. (source: Livewiremarkets)
Fortescue’s operations are centred on large open-pit iron ore mines that produce hematite ore from the Hamersley Basin, one of the world’s most significant iron ore provinces. The company operates multiple mining hubs that supply ore to processing plants, rail infrastructure, and export terminals on the Pilbara coast.
Today, Fortescue’s Pilbara system has a production capacity of around 190 million tonnes of iron ore per year, supplying global steel markets, particularly in Asia.
Major Mining Hubs
Fortescue’s iron ore production is organised into several major mining hubs across the Pilbara.
Chichester Hub
Located near Cloudbreak (Figure 13) and Christmas Creek (Figure 14), the Chichester Hub was the company’s first major mining operation. These deposits produce a blend of ore types that are processed and transported to port via Fortescue’s rail network.
Figure 13: The Christmas Creek iron ore operations. (source: Fortescue)
Figure 14: The Cloudbreak iron ore operations. (source: Fortescue)
Solomon Hub
The Solomon Hub (Figure 15) includes the Firetail and Kings Valley iron ore deposits. This hub produces higher-grade ore compared with some of Fortescue’s earlier operations and contributes a large share of the company’s production.
Figure 15: The Solomon iron ore operations. (source: Fortescue)
Western Hub – Eliwana and Iron Bridge
Fortescue expanded further west with the development of the Eliwana iron ore Mine (Figure 16), which began production in 2020. Eliwana provides higher-grade ore and supports Fortescue’s strategy to improve product quality iron ore.
Figure 16: The Eliwana iron ore mine. (source: Fortescue)
Another major development is the Iron Bridge Magnetite Project. Unlike Fortescue’s traditional hematite operations, Iron Bridge iron ore mine produces a high-grade magnetite concentrate and represents the company’s move into magnetite iron ore production.
Figure 17: The Ironbridge magnetite project accomodation camp. (source: Fortescue)
Key Facts – Fortescue Iron Ore Operations
Operator: Fortescue
Location: Pilbara region, Western Australia
First production: 2008
Main mining hubs:
Chichester Hub (Cloudbreak, Christmas Creek)
Solomon Hub (Firetail, Kings Valley)
Western Hub (Eliwana)
Magnetite development: Iron Bridge project
Rail network: ~600 km heavy-haul railway
Export terminal: Herb Elliott Port, Port Hedland
Production capacity: ~190 million tonnes per year
6.05 Simandou Iron Ore Project (Guinea) (projected)
Tonnes mined per year: ~60 Mtpa (Phase 1 sanctioned)
Long-term expansion discussions: up to ~120 Mtpa
Typical product grade: ~65–66% Fe (very high-grade hematite)
Mine life remaining: 30–40+ years
Status: Under development (rail + port critical path)
The Simandou Iron Ore Project (Figure 18) in the Republic of Guinea is widely regarded as one of the largest undeveloped high-grade iron ore deposits in the world. Located in the Simandou mountain range in southeastern Guinea, the project contains exceptionally high-grade hematite resources and has the potential to become one of the most significant new sources of seaborne iron ore supply.
Figure 18: The Simandou Iron Ore Project. (source: South China Morning Post)
The deposit is divided into four main blocks along the Simandou range. Development of the project is being undertaken by a consortium that includes Rio Tinto, the Aluminium Corporation of China (Chinalco) and a group of Chinese investors under the Simandou Winning Consortium. The government of Guinea also holds a stake in the project.
Simandou has been known for decades as a world-class iron ore province, but development has been delayed due to infrastructure requirements, financing complexity and ownership changes. In recent years, construction has accelerated as the partners move toward bringing the project into production.
Simandou is notable for its high-grade hematite ore, typically grading around 65–66% iron, which is comparable to the premium ores produced from Brazil’s Carajás deposits. The scale of the deposit is also exceptional, with resources estimated to exceed two billion tonnes of high-grade iron ore across the Simandou range.
Figure 19: Mining begins at the Simandou Iron Ore Project. (source: Reuters)
The ore occurs along a ridge system stretching more than 100 kilometres, making it one of the most extensive undeveloped iron ore formations globally. These characteristics mean Simandou could produce a premium iron ore product suitable for efficient steelmaking.
The mine officiaily commenced in early November 2025. Production rates are expected to reach full capacity of 120mtpa by 2030, 60mtpa of which will come from SimFer, a consortium 53% owned by Rio. When the project reaches full capacity, it will account for about 5% of total global supply.
As the Simandou operations approach full capacity, S&P Global estimates all-in sustaining costs in the range of $55-$60/t.
Key Facts – Simandou Iron Ore Project
Location: Simandou Range, southeastern Guinea
Deposit type: High-grade hematite iron ore
Resource scale: >2 billion tonnes
Average grade: ~65–66% Fe
Planned production: ~100 Mt per year (long-term)
Infrastructure:
~650 km Trans-Guinean railway
New deep-water export port
Major stakeholders:
Rio Tinto
Chinalco
Simandou Winning Consortium
Government of Guinea
6.06 Roy Hill (Australia)
Tonnes mined per year: ~60 Mtpa (operating nameplate)
Typical product grade: ~55–62% Fe (lump + fines blend)
Mine life remaining: >20 years
The Roy Hill Mine is a large open-pit iron ore operation located in the eastern part of the Pilbara. The mine is operated by Roy Hill Holdings and represents one of the largest single iron ore mining developments constructed in Australia during the past two decades.
Figure 20: The Roy HIll Iron Ore Operations. (source: MLG)
The project is situated about 115 kilometres north of the mining town of Newman and was developed to exploit a large hematite iron ore deposit within the Brockman iron formation of the Hamersley Basin.
Construction of the mine and associated infrastructure began in 2013, with the first shipment of iron ore exported in December 2015. The development required significant investment in mining infrastructure, processing facilities, rail transport and port infrastructure.
Mining and Processing Operations
Roy Hill is designed as a large-scale open-pit mining operation producing hematite iron ore. Ore extracted from the mine is transported to a central processing plant where it is crushed, screened and beneficiated to produce lump and fines iron ore products suitable for steelmaking.
The operation has a nameplate production capacity of approximately 60 million tonnes of iron ore per year, placing it among the major iron ore producers in the Pilbara.
Mining operations utilise large-scale haul trucks, excavators and drill rigs typical of modern Pilbara iron ore operations. The project was designed to operate as an integrated mining system with its own processing and logistics infrastructure.
Ownership
Roy Hill Holdings is privately owned and led by Australian businesswoman Gina Rinehart through the Hancock Prospecting group. The project also includes several international partners.
Major stakeholders include:
Hancock Prospecting
Marubeni Corporation
POSCO
China Steel Corporation
These partnerships helped finance the large-scale development of the project and support long-term iron ore supply agreements with steel producers.
Key Facts – Roy Hill Iron Ore Mine
Location: Pilbara region, Western Australia
Distance from Newman: ~115 km north
Mining method: Open-pit hematite mining
Production capacity: ~60 Mt per year
Railway: ~344 km Roy Hill Railway
Export port: Roy Hill terminal, Port Hedland
First shipment: December 2015
6.07 NMDC – Bailadila iron ore complex (India)
Tonnes mined per year: ~45 Mtpa (operating / targeted)
Typical product grade: ~64–66% Fe
Mine life remaining: 20+ years (multiple mining leases)
The Bailadila Iron Ore Complex is one of India’s most important iron ore mining regions and is operated by the state-owned company NMDC Limited. The complex is located in the Bastar district of Chhattisgarh, within a series of mountain ridges known as the Bailadila range (Figure 21).
Figure 21: The Bailadila Iron Ore Mine. (source: NMDC)
The name “Bailadila” translates roughly to “hump of the ox”, reflecting the shape of the hills where the iron ore deposits occur. These deposits are among the highest-grade iron ore resources in India, typically producing hematite ore with iron content exceeding 64% Fe.
Mining in the Bailadila region began in the late 1960s and has since developed into a major production centre supplying iron ore to both domestic steel producers and international markets.
The Bailadila complex consists of a number of iron ore deposits distributed along the Bailadila hill range. Several deposits are actively mined by NMDC, including:
Deposit 14/11C
Deposit 11B
Deposit 5
Deposit 10 and 11A
Mining is conducted using large open-pit methods, where ore is extracted from the hillside deposits and transported to nearby crushing and screening plants. The ore is then processed to produce lump and fines products suitable for steelmaking.
The deposits are known for their high-grade hematite ore, which allows NMDC to supply premium iron ore products to steel mills.
Key Facts – Bailadila Iron Ore Complex
Location: Bastar region, Chhattisgarh, India
Operator: NMDC Limited
Deposit type: High-grade hematite iron ore
Ore grade: typically 64%+ Fe
Mining method: Open-pit mining
Major deposits: 14/11C, 11B, 5, 10 and 11A
Rail connection: Kirandul–Visakhapatnam line
Export port: Visakhapatnam Port
6.08 Kumba Iron Ore – Sishen & Kolomela (South Africa)
Kumba Iron Ore (Figure 22) is one of the largest iron ore producers in Africa and a major supplier of high-quality iron ore to the global steel industry. The company operates large open-pit iron ore mines in the Northern Cape Province of South Africa and is majority owned by Anglo American.
Kumba’s operations are centred on the Sishen and Kolomela mines, which extract hematite iron ore from deposits within the Transvaal Supergroup of the Kaapvaal Craton. These deposits are known for producing high-grade lump and fines iron ore products, which are exported primarily to steel producers in Asia and Europe.
The company plays an important role in South Africa’s mining sector, contributing significantly to the country’s iron ore exports and providing supply to both domestic and international steel markets.
Sishen Mine – Northern Cape
Location: Near Kathu, Northern Cape, South Africa
Ownership: Operated by Kumba Iron Ore (majority owned by Anglo American)
Product: High-grade hematite iron ore lump and fines
Figure 22: Kumba Iron Ore Mining operations. (source: Mining Weekly)
Sishen is one of the largest open-pit iron ore mines in the world and the flagship asset of Kumba Iron Ore. The orebody is predominantly high-grade hematite hosted within the Transvaal Supergroup. Mining is conducted via large-scale conventional open-pit methods using truck-and-shovel fleets.
Sishen produces both lump (direct shipping ore suitable for blast furnaces) and fines products. The mine is a key supplier to global steelmakers and exports via the Sishen–Saldanha heavy-haul railway to the port of Port of Saldanha.
Kolomela Mine – Northern Cape
Location: Near Postmasburg, Northern Cape, South Africa
Ownership: Operated by Kumba Iron Ore
Product: High-grade hematite iron ore
Kolomela is a newer, smaller but highly efficient open-pit iron ore operation compared to Sishen. It was developed to replace declining production from older pits and to maintain Kumba’s export capacity.
Kolomela is known for:
Relatively lower stripping ratios
Operational efficiency
Consistent high-grade product
Production & Strategic Importance
Combined production historically ~35–40+ million tonnes per annum (varies by year and market conditions).
Typical product grade: ~64% Fe
Mine life remaining:
Sishen: ~10–15 years
Kolomela: ~15–20 years
Primary markets: China, Europe, and the Middle East.
Strategic importance: Key supplier of premium iron ore products that support efficient blast furnace operations and lower emissions intensity per tonne of steel.
Geological Context
Both Sishen and Kolomela exploit Banded Iron Formation (BIF)-hosted hematite deposits, enriched through supergene processes that upgraded the original iron formation to high-grade direct shipping iron ore. This natural upgrading is a major reason why these mines are globally competitive.
6.09 LKAB – Kiruna & Malmberget (Sweden)
The Kiruna Iron Ore Mine (Figure 23), located in Kiruna, Norrbotten County in northern Sweden, is owned by Swedish mining company LKAB (Luossavaara-Kiirunavaara AB). It is one of the largest and most significant underground iron ore operations in the world.
In 2018, the mine produced 26.9 million tonnes of iron ore. The orebody is approximately 4 km long, 80–120 metres thick, and extends to a depth of up to 2 km. Since operations began in 1898, more than 950 million tonnes of ore have been extracted. As of 2020, the main haulage level sits 1,365 metres below the original ore outcrop at Kiirunavaara.
Figure 23: Kiruna Iron Ore Mine - Cross Section (source: By Borvan53 - Own work, CC BY-SA 4.0,)
Tonnes mined per year: ~25–30 Mtpa (operating)
Typical product grade:
Pellets: ~67% Fe
Fines: up to ~70% Fe
Mine life remaining:
Kiruna main level to ~2046, longer with deeper mining
Due to mining-induced ground subsidence, a decision was made in 2004 to gradually relocate the centre of Kiruna town, with the transition planned over several decades to accommodate continued mining expansion (Figure 24).
Figure 24: The close proximity of the townsite and the mine is clearly shown in the two photos. (source: The moving of the Swedish mining city Kiruna)
6.10 IOC – Iron Ore Company of Canada (Canada)
Tonnes mined per year: ~18–20 Mtpa (operating capacity)
Typical product grade: ~65% Fe concentrate / pellets
Mine life remaining: ~20–25 years
7.0 The New Generation of the Iron Ore Business -Direct Reduction Pellets — The Race Toward Green Steel Starts at the Ore Body
The business of iron ore has now come to the a stage where the "green" factor is playing a larger role. The old business of just putting >60% Fe ore into a truck and loading it onto trains and then supertankers are now no longer the main game being positioned for the coming decades.
It is a well known fact now that mills in China are taking blends and with the cleaning up of the mills in China, the need for cleaner style feed into the furnace is now the talk of the town.
The real answer is not hematite vs magnetite — it is grade and quality. Steel mills increasingly prefer High-Fe feedstock (>65% Fe) because it:
reduces coke use
improves productivity
lowers emissions
reduces slag volume
Remember the following:
Steel mills do not prefer magnetite simply because it is magnetite
They prefer: higher grade + cleaner ore.
Magnetite can deliver that, but only if the beneficiation economics work.
That is why some magnetite projects struggle:
high capex
energy intensive grinding
China Making DRI Happen
China’s Steel Industry Work Plan (2025–26) emphasises modernization through electric arc furnaces and hydrogen-based ironmaking technologies. China’s steel sector is exploring direct reduced iron (DRI) + electric arc furnace (EAF) as a major low-carbon alternative to blast furnaces.
The DRI-EAF route is widely seen as a promising pathway to reduce emissions and reliance on coking coal.
However, China currently produces very little DRI, which is why the technology is now being actively developed.
China is beginning to deploy commercial DRI facilities. China Baowu and HBIS have commissioned Energiron DRI plants, part of the move toward low-carbon steelmaking (IEEFA)
The future of the iron ore industry is now in plain sight as China’s steel industry begins to develop direct-reduction iron (DRI) technologies as part of its decarbonisation strategy, which will increase future demand for high-grade DR-grade pellets.
Companies like Vale are already onto this part of the business and the article (Figure 25) from Reuters clearly show that the company is more than talk.
Figure 25: An article reporting what Vale is doing to create a "greener" iron ore business.
7.01 What Are Direct Reduction (DR) Pellets?
Direct Reduction (DR) (Figure 26) pellets are high-grade iron ore pellets specifically engineered for use in Direct Reduced Iron (DRI) processes. Unlike traditional blast furnace feed (sinter or standard pellets), DR pellets are designed for gas-based reduction using natural gas or hydrogen rather than coke.
Figure 26: Iron ores prior to reduction within the direct reduction process. (source: Fraunhofer IKTS)
In a DRI plant, iron ore is reduced in the solid state (below melting point) using reducing gases (H₂ and CO), producing Direct Reduced Iron (DRI) or Hot Briquetted Iron (HBI) — the preferred metallic feed for Electric Arc Furnaces (EAFs).
7.01.1 Key Characteristics of DR Pellets
High Fe content (typically 67%+)
Very low silica and alumina
Low phosphorus and sulfur
High mechanical strength
Uniform size and porosity
These specifications are critical. Gas-based reduction is far less forgiving than a blast furnace. Impurities directly affect metallisation rates, energy consumption, and steel quality.
7.02 How Are DR Pellets Produced?
Producing DR-grade pellets (Figure 27) is something that I have found in my research that does show in a schematic way the whole palletisation process. I acknowledge that this is just one flowsheet and there will be more newer and modified versions. However, this should give readers a simplistic view of the process and a real world version from one of Vale's operations.
Figure 27: Schematic flowsheet of the pelletizing plants of Complexo de Tubarão (Vale) with the HPGR operating in regrinding pre-pelletizing (CAMPOS et al., 2019a). (source: Campos, Túlio. (2023). A NOVEL HPGR ONLINE MODELING AND SIMULATION APPROACH COUPLED WITH REAL-TIME INFORMATION.)
7.02.1 Step-by-Step Process
Mining & Crushing
Magnetite ore is mined and crushed.
Beneficiation
Magnetic separation upgrades Fe content.
Silica, alumina, and other gangue minerals are removed.
Result: High-grade magnetite concentrate (often 68–70% Fe).
Pelletising
Concentrate is mixed with binders (usually bentonite).
Rolled into green pellets using disc or drum pelletisers.
Induration
Pellets are fired at high temperatures (~1,250–1,350°C).
This hardens the pellets and develops required strength and porosity.
Quality Control
Testing for compression strength, reducibility, swelling index, and metallisation potential.
7.03 Why DR Pellets Matter
For decades, the global steel industry has relied heavily on the blast furnace–basic oxygen furnace (BF-BOF) route. This traditional pathway consumes large volumes of iron ore fines, coke, and sinter. However, the steel industry is now under increasing pressure to reduce carbon emissions, and this is where Direct Reduction (DR) pellets become critically important.
DR pellets represent a specialised type of iron ore pellet designed specifically for direct reduction iron (DRI) processes, which are increasingly used in electric arc furnace (EAF) steelmaking. As the world transitions toward low-carbon steel production, DR pellets are emerging as one of the most strategically important raw materials in the iron ore value chain.
7.03.01 Decarbonisation of Steel
(source: ScienceDirect)
The global steel industry produces roughly 7–9% of global CO₂ emissions. The traditional blast furnace route emits large amounts of carbon because it relies on coking coal as both fuel and reductant.
Table 2: Direct Reduction offers a lower-carbon pathway: Because DR furnaces require high-purity iron feed, DR pellets are essential to making this transition possible.
Steelmaking Route | CO₂ Intensity |
Blast Furnace | ~1.8–2.2 t CO₂ per tonne steel |
Natural Gas DRI + EAF | ~1.2 t CO₂ |
Hydrogen DRI + EAF | <0.2 t CO₂ |
In simple terms:
No DR pellets → No large-scale green steel.
7.03.02 EAF Growth
Electric Arc Furnaces are expanding globally, especially in:
Europe
North America
Middle East
These plants need consistent, high-grade feedstock — and DR pellets are essential.
7.03.03 Premium Pricing
DR-grade pellets command price premiums over:
62% Fe fines
Standard blast furnace pellets
The market increasingly differentiates based on Fe grade and impurity profile.
7.04 Not All Magnetite Deposits Can Produce DR Pellets
This is an important part of the process and this is also important for several projects that are in the DR-space. This phenomenon is like we can all be a King but we will never be one because we are not born within the family tree.
Hence, it is important understand that Just because a project is “magnetite” does not mean it can produce DR-grade pellets.
7.04.01 Why?
Some magnetite concentrates cannot reach 67%+ Fe without excessive grinding cost.
Elevated silica or alumina can persist after beneficiation.
Certain deposits contain deleterious elements (P, S, TiO₂).
Grinding to ultra-fine sizes may create pelletising issues.
Mineralogy influences pellet reducibility and swelling.
7.04.02 Ore body geology determines pellet quality.
Projects must demonstrate:
Consistent concentrate chemistry
Suitable grind size distribution
Metallurgical test work confirming DR specifications
Induration performance
Without the specifications required to be a DR capable magnetite source, “DR - Ready” is just marketing.
This means:
Magnetite deposits are often preferred because beneficiation can produce very high grades.
Many hematite deposits cannot reach DR pellet specifications without significant processing.
This is why many smaller companies targeting DR markets are developing:
magnetite projects
beneficiation flowsheets
pellet plants
Table 3: Suitable Ore Types Note that this is why This is why many DR pellet projects focus on magnetite deposits. Magnetite beneficiation can produce concentrates >68–70% Fe, which are ideal for DR pellet feed.
Ore Type | DR Pellet Potential |
Magnetite concentrates | Excellent |
High-grade hematite (>67% Fe) | Good |
Typical Pilbara hematite fines | Generally unsuitable |
7.04.03 Why This Sector Is Emerging
Three major trends are driving DR pellet demand:
Electric Arc Furnace steelmaking growth
Hydrogen-based steel production
Decarbonisation of steel
DRI processes need high-purity iron units, which makes DR pellets critical.
The Middle East, Europe and the United States are already relying heavily on DR pellets.
8.0 Global Companies Working on DR Pellets - The Big Boys
8.01 Vale S.A. - Brazil
World’s largest pellet producer.
Actively developing DR-grade pellet feed.
Pushing “green briquette” concepts.
Positioned to supply Europe’s hydrogen DRI push.
Vale’s Carajás ores are naturally high grade — a structural advantage.
8.02 LKAB - Sweden
High-grade magnetite producer.
Major supplier of DR pellets to Europe.
Central to the HYBRIT hydrogen steel initiative.
Vertically integrated model from mine to pellet.
Figure 28: One of LKAB's main products is iron ore pellets, a small ball consisting of a mixture of refined iron ore, oxides, and additives. The company is now increasing its production volume of iron ore pellets in Kiruna and slowing the transition to carbon dioxide-free sponge iron production in the northern Swedish city. Fredric Alm
Swedish magnetite mineralogy is ideal for DR concentrate production (Figure 28).
8.03 ArcelorMittal (AMMC Canada) - Canada
Produces high-grade concentrate and DR pellets.
Strategic supplier to North American EAF steelmakers.
Leveraging Quebec’s magnetite deposits.
8.04 Cleveland-Cliffs Inc. - US
Supplies DR-grade pellets domestically.
Operates an HBI plant in Toledo.
Integrated into US steel decarbonisation.
8.05 Fortescue Limited - Australia
Iron Bridge magnetite project.
Aiming for high-grade concentrate.
Tied to green hydrogen ambitions.
Still proving long-term concentrate consistency.
Australia has abundant magnetite, but not all deposits achieve DR specifications economically.
9.0 Small Iron Ore Companies Targeting the Direct Reduction Pellet Market
The shift toward Direct Reduction (DR) pellets is creating a new niche in the iron ore sector. Large producers dominate the current supply, but several smaller or emerging companies are positioning themselves to supply DR-grade concentrate or DR pellets, particularly because green-steel producers require high-purity iron units.
Below is a review of smaller iron ore companies working toward the DR pellet or DR pellet feed market.
9.01 Tacora Resources – Magnetite DR Pellet Producer
Tacora Resources is a smaller North American iron ore producer focused on high-grade magnetite concentrate suitable for DR pellets.
Region: Labrador Trough
Province: Newfoundland and Labrador, Canada
Nearest town: Wabush
Mining district: Western Labrador / Quebec–Labrador Iron Ore Belt
Figure 29: Scully Mine Location located in North-West Tasmania, Australia. (source: Mining Services)
Key Location Context
The mine sits in the Labrador Trough, one of the world’s major iron ore districts.
It is close to other historic operations such as those around Labrador City and the large deposits mined by ArcelorMittal and Champion Iron.
The region is connected to the port of Sept‑Îles in Quebec via the Quebec North Shore and Labrador Railway, which is used to ship iron ore concentrate to global markets.
Key points
Operates the Scully Mine
Produces 65–67% Fe concentrate
Material is sold to pellet plants producing DR-grade pellets
Beneficiation upgrades lower-grade ore to high-purity concentrate
Tacora sits in the North American DR supply chain, feeding pellet plants that supply electric arc furnace steelmakers.
9.02 Grange Resources – Magnetite Concentrate for DR Pellets
Grange Resources Limited operates one of the few integrated magnetite pellet operations in Australia.
Key points
Owns the Savage River Mine
Pellets produced at the Port Latta Pellet Plant
Pellet grade around 65–66% Fe
Located in North-West Tasmania, Australia
Figure 30: Location of the Savage River Iron ORe Mine in Australia. (source: Hancock, E. and Wynn, E. Savage River underground project update. 9th International Conference and Exhibition on Mass mining, Kiruna, Sweden 17-19 September 2024)
Although much of the product goes into blast furnaces, magnetite pellets are technically suitable for DR processes depending on chemistry.
Grange demonstrates that magnetite beneficiation + pelletisation is the pathway most juniors are exploring for the DR market.
9.03 Kamistiatusset (Kami) Iron Ore Project – DR Pellet Feed Concept
Champion Iron Limited (“Champion” or the “Company”) acquired the Kamistiatusset Iron Ore Project (“Kami” or “The Project”) on April 1, 2021.
Figure 31: Location of the Kami Iron Ore Project. (source: Champion Iron Limited).
Kami is located southwest of the towns of Wabush and Labrador City in Newfoundland & Labrador and east of Fermont, Québec. The Project is situated 21 km southeast of the Company’s operating Bloom Lake mine, in the Labrador Trough geological belt in southwestern Labrador, near the Québec border.
Key points
Magnetite deposit
Target 65–68% Fe concentrate
Intended supply for North American pellet plants
The project has gone through restructuring but remains a reference case for DR pellet-focused development projects.
9.04 Magnetite Mines – DR Pellet Feed From Razorback
Magnetite Mines Limited is one of the most prominent junior DR pellet feed developers.
Project:
Owner: Magnetite Mines Limited (ASX: MGT)
Location: Braemar Iron Formation, near Hawker, South Australia
Key points
Concentrate grade ~68–70% Fe
Designed specifically for DR pellet feed
Targeting green steel markets
Located 240 km from Adelaide, Australia.
Figure 32: Location of the Razorback Iron Ore Project. (source: Magnetite Mines).
Ore Grade
Run-of-Mine Ore
Average in-situ grade:
~16–18% Fe magnetite mineralisation
This is typical of large magnetite Banded Iron Formation (BIF) deposits, where beneficiation is required.
Concentrate Grade
After grinding and magnetic separation:
Target concentrate:
~68.8% Fe magnetite concentrate
Impurity levels:
Very low silica
Very low alumina
Very low phosphorus
This quality is designed to meet DR pellet feed specifications.
Project Scale
JORC Resource: ~5 billion tonnes of magnetite mineralisation.
Planned production: ~5 million tonnes per annum of high-grade concentrate in the initial stage.
Mine life: potentially >100 years due to the scale of the resource.
This makes Razorback one of the largest undeveloped magnetite iron ore resources in Australia.
Direct Reduction (DR) Strategy
The Razorback project is specifically positioned to support low-carbon steel production.
Key elements of the DR strategy:
Produce DR-grade magnetite concentrate (~68–70% Fe).
Supply pellet feed for Direct Reduction (DR) iron plants.
Target customers operating Electric Arc Furnace (EAF) steelmaking routes.
Align with green steel initiatives in Asia, Europe, and the Middle East.
9.05 Champion Iron – Premium DR Pellet Feed Supplier
While larger than most juniors, Champion Iron Limited is still considered a mid-tier producer and is a key supplier of DR pellet feed concentrate.
Figure 33: Location of the Bloom Lake Iron Ore Project. (source: Champion Iron Limited).
Project:
Bloom Lake Mine
Key points
Concentrate grade ~66–69% Fe
Low impurities
Material used in pellet plants producing DR pellets
Champion Iron is increasingly positioning itself as a premium feedstock supplier for green steel.
9.06 Iron Bear Limited – Iron Bear Iron Ore Mine - Direct Reduction Strategy
Project: Iron Bear Iron Ore Project
Owner: Champs d'Or en Beauce Inc.
Location: Labrador Trough, near the Québec–Labrador border, Canada
Deposit Type: Magnetite iron formation
Ore Grade and Product
Deposit type: Magnetite banded iron formation (BIF).
Run-of-mine grade: typically around 30–33% Fe.
Magnetite ore is expected to be beneficiated through grinding and magnetic separation.
Target concentrate:
66–69% Fe magnetite concentrate
Very low impurities
Low silica
Low alumina
Low phosphorus
This type of concentrate is suitable for premium iron products and pellet feed.
Direct Reduction (DR) Strategy
Iron Bear is being evaluated specifically with Direct Reduction (DR) iron production in mind.
Key strategy elements:
Produce high-grade magnetite concentrate suitable for DR pellets.
Target DR-grade pellet feed (≈67–69% Fe).
Designed to supply Electric Arc Furnace (EAF) steelmaking.
Aligns with low-carbon steel production strategies.
Strategic Advantages
Located in the Labrador Trough, an established iron ore mining district.
Magnetite concentrate allows consistent high-grade product.
Potential to produce DR pellet feed, which is increasingly demanded by decarbonising steelmakers.
Positioned to supply future green steel supply chains in North America and Europe.
10.0 Strategic Observations — The Samso View
DR pellet capacity is structurally constrained.High-grade ore bodies are rare.
Geology now matters more than scale.Grade consistency and impurity control determine long-term competitiveness.
The green steel narrative is real — but selective.Only a subset of global iron ore projects qualify.
Future premiums will widen.62% Fe fines vs 67%+ DR feed could see structural divergence.
Test work is everything.Investors must look beyond headlines:
What is the grind size?
What is the silica level after beneficiation?
Has reducibility been tested?
Is induration proven?
11.0 Final Thoughts
The shift toward DRI is not simply a steel story — it is an ore body story.
The companies that control consistent, scalable, DR-grade magnetite concentrate will hold strategic leverage in the decarbonising steel industry.
But the market must understand:
Magnetite ≠ DR pellet.
Only certain mineral systems, with the right metallurgy and economics, will make that leap.
And that is where the next iron ore differentiation cycle begins.
12.0 Samso Concluding Comments
Iron ore consumption since the 1960s reads like a story of steel becoming the physical language of economic development. The numbers show steady growth, then pauses, then a once-in-a-generation surge that lifted the whole system into the billion-tonne era.
The producer timeline matters because iron ore is not just a rock story—it’s an infrastructure story. The miners who mattered most were the ones who built repeatable, scalable logistics and then kept product quality consistent enough for steelmakers to plan around.
The Transition to Cleaner Iron ore
The last few years look like a transition chapter rather than an ending. Global steel output is still sitting near record levels, but the growth engine appears to be shifting geographically, and that will shape which supply chains feel “closest” to the next wave of demand.
For me, the current general narrative of a iron ore supply disruption in terms of a potential increase in supply affecting the current producers is unfounded. There may be more disruption currently with them potential escalation of hostilities in the US vs. Iran. One may say that the hostilities may be a catalyst for a increase demand for iron ore and take away the Simandou effect.
Making Green Gestures
What is more important is for investors to take note of the Direct Reduction Iron factor. If you look at the need to participate in the "green" effect that is encapsulating global economies, the obvious one is to create products that the steel mills can use to increase their part in the decarbonisation process.
The big players are all preparing for the switch and the vendors of magnetite projects prone for beneficiation to higher iron grades are all slowly rubbing their hands. There is a concerted effort to seek magnetite projects that will allow the beneficiation process to achieve Direct Reduction status. The companies with projects in the Labrador Trough seem to be making the most waves and this is going to create a this area into the next Pilbara Money Printer. For a start, companies such as Champion Iron Limited , Iron bear Limited and Tacora Resources should be on the watchlist.
The Direct Reduction Iron Players
Champion Iron stands out as the clear leader, but the unique partnership between Iron Bear Limited and Vale is the one to watch. With a market capitalisation of around AUD $50M as of March 8, 2026, Iron Bear Limited appears to be an incredible bargain, considering their JORC Resource of approximately 16.66 billion tonnes of magnetite mineralization, with a potential Direct Reduction concentrate grade exceeding 70% Fe and a SiO2 grade of 1-1.2%.
As a shareholder of Iron Bear, I am particularly interested in this subject. The fact that Champion Iron is also categorising their magnetite in this way indicates that this is not a groundbreaking process. Iron Bear Limited is not reinventing the wheel with their efforts.
Is Simandou Too late
The coming on of a haematite high-grade iron ore deposit may just be too late. This will be a process for time to see if there is going to be a transition from high-grade haematite ore to high-grade magnetite ore that can be made into the Direct Reduction Pellets. Nothing in Life stands still and we know that the need to create cleaner energy products is high on the agenda.
13.0 The Samso Way – Seek the Research
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