Deposits Formed by Sedimentary and Surficial Processes - Metals and Society: An Introduction to Economic Geology - page 126

5.3 Sedimentary Fe Deposits

5.3.1 Introduction

Although the global production of some commodities may have reached a maxi-
mum and may now be passing into decline, petroleum being the key example, this is
far from the case for iron. World consumption of iron ore was about 1,400 t in 2006
and even allowing for major increase due to growing demand in China and other
developing countries, the annual figure is unlikely to exceed 2,000 t/year (the
proportion of recycled iron, currently 8-10%, is likely to increase). Global reserves
of iron ore (deposits whose existence has been proven by drilling) are estimated at
an enormous 800,000 t of ore, and global resources (ores whose existence can be
inferred) are more than double this amount. Dividing reserves or resources by the
annual rate of consumption gives us the period of time before iron ores will be
exhausted - 400 or about 1,000 years, depending on which figure is used. How
much iron will mankind need at the start of the next millennium?
On the other hand, as with most other commodities, iron ore deposits are not
distributed equally across the globe. China, the world's biggest producer, mined
over 260 t of iron ore from its vast domestic resources in 2007; but it is also the
biggest consumer, thanks to the growing demand for the steel needed to build in
infrastructure that is required for a rapidly industrialising society. Currently China
imports about 500 t of ore each year, mainly from Australia and Brazil. India is
going through a phase of reindustrialisation similar to that in China, but many
geologists and politicians believe that reserves of iron ore in that country are
relatively limited. The question of how to manage mineral resources is the topic
of the following exercise.

Box 5.3 Exportation Versus Conservation of Mineral Resources. Policies
and Consequences in Australia and India
In the summer of 2009 (when we wrote the first version of this topic) the
Indian government was giving serious thought to banning the exportation of
iron ore. The argument was that all known deposits in the country were
relatively modest and should be reserved for domestic consumption by future
generations.
In Australia in the 1950s, it was believed that reserves of iron ore in the
country were very small; sufficient only for domestic use. Exportation of iron
ore was forbidden, mineral companies had no interest in exploring for new
deposits and none were found; the situation persisted for a decade.
On 16 November 1952 Lang Hancock, a prospector and cattle rancher,
was flying over the Hamersley Range in rugged outback of the Pilbara in the
northwestern part of the country. Bad weather forced him to fly at low altitude
and as he did he wondered if the bands of bright red rock visible in nearby
valley walls might be iron ore. A year later he returned and found that they
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