The Global iron ore production is expected to get back its momentum as the output gets back on track while recovering from the impacts of the coronavirus pandemic that impacted the world.
The iron production of the world is set to make a comeback and register a growth of 5.1% this year. The rate of growth was released by data and analytics firm GlobalData. The production of the mineral is relevant in the manufacture of steel a major component used by the developing and developed countries looking to boost their infrastructure.
The global iron industry went through a lot of upheavals in 2020 and the analytics firm’s growth projection of the mineral shows a hike by 111.3 million tonnes to just over 2.3 billion tonnes this year.
In the report released by the GlobalData an interesting thing to note is the growth rate of the global iron ore production at a compound annual growth rate of 3.7% to almost 2.7 billion tonnes between this year and 2025.
The main players in this growth chart will be Brazil at the top with 6.2%, followed by South Africa (4.1%), Australia (3.2%) and India (2.9%).
The report while outlining the player contribution also gives us details on the important upcoming projects in the industry. These include the South Flank which is expected to come up by 2021 and Gudai-Darri in Australia, which is slated for 2022.
The other main projects listed included in the second half are namely the Zulti in South Africa and Serrote Da Laje in Brazil.
The steel production dropped by 3 to 2.2 billion tonnes last year. The analytics firm further throws spotlight on the reasons for the drop in output.
GlobalData rightly attributes it to the world’s major contributors Brazil and India who brought down the output in 2020. The total production of both countries slipped from a joint 638.2 million tonnes in 2019 to an approximate 591.1 million tonnes last year.
Elucidating on Brazil’s status with respect to this, the report by GlobalData shows that the decreased production from Brazilian company Vale, was the key factor that brought down the output. Meanwhile, explaining the cause of decreased production from India it said it was due to the delay in the mine auction that reduced the output in 2020
Meanwhile, reports shows that Australian miners were the least impacted by the pandemic. This is mainly attributed to two main reasons, first due to the effective steps taken by the Australian government, secondly due to the fast recovery in China. This led to a good 10.4% growth in the country’s production.
As it is projected, English Australian firm Rio Tinto is estimated to produce approximately 340 million tonnes of iron while BHP says it will produce 245-255 million tonnes. BHP is the world’s second largest miner.
Meanwhile, the remaining companies are expected to produce more than 600 million tonnes of iron ore. This includes FMG whose production is estimated to range between 175-180 million tonnes.
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