Major iron ore producers have used 11.1 billion tonnes of reserves over the past decade replacing three-fourths of tonnes mined
The world’s major iron ore producers are consuming their reserve bases faster than they are replenishing them, while the cost and complexity of replacing those reserves is rising. The quality of some replacement resources is also declining, putting further pressure on margins and product premiums. Those are the central findings of Iron Ore Reserve Depletion ...
Major iron ore producers are using up their reserves faster than they can replace them. Over the past decade, the six largest producers depleted 11.1 billion tonnes of marketable reserves, but only three of them were able to replenish what they mined. Net reserve replacement ratios across the group ranged from 28% to 159%, indicating that some producers are struggling to keep up with depletion.
This trend is driven by higher costs and more complex processes for replacing reserves, as well as declining ore quality. Cash costs for iron ore have roughly doubled since 2016, and margins have narrowed to $50-$60 per tonne by 2025. The quality of iron reserves has also been eroding, with some producers experiencing lower iron content and higher impurity levels.
Replacing reserves is becoming more capital intensive, with growth capital expenditure per tonne of reserve added ranging from $2 to $10. Major producers are investing billions in sustaining projects to maintain production levels, but these efforts are largely keeping output flat rather than expanding it.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
