Industry Analysis & Industry Trends
Over the five years through 2014-15, Iron Ore Mining industry revenue is expected to increase at an annualised 11.5% to $76.8 billion. Strong economic growth in large and developing nations, such as China and India, has increased steel production, fuelling demand for iron ore and contributing to high iron ore prices, particularly in the years prior to 2012-13. However, iron ore prices (denominated in US dollars) started falling in 2013-14, partly offset by a weaker Australian dollar. Overall, relatively high iron ore prices provided an incentive for Australian iron ore mining firms to increase production. This led to major capacity expansions and large-scale increases in Australia's iron ore output in the past five years... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry into the Iron Ore Mining industry are high. Large amounts of required capital are typically in the hundreds of millions of dollars to establish a new mine or acquire existing operations. Hancock Prospecting is in the process of building its own 344 kilometre rail network to transport iron ore to processing plants and it own port facilities. The cost of this type of infrastructure creates large entry barriers for firms with limited financial assets.
New entrants must obtain long-term contracts to gain some security, with the main iron ore buyers now based in China. This requires convincing buyers that the ore mined will be of suitable quality and that long-term supply can be guaranteed... purchase to read more