BHP sells most iron ore to Asian countries

MELBOURNE (JP): Iron ore could rightfully claim to be the backbone of today's advanced industrial societies. It is the basic ingredient for steel, which is used to extensively in products that shape our daily lives -- from cars to pins.

BHP Iron Ore, a division of BHP Minerals and part of the Broken Hill Proprietary Company Limited (BHP), is the world's second largest producer of iron ore.

The company supplies steel makers in Japan, Taiwan, China and Australia's BHP Steel in New South Wales.

Each year, BHP Iron Ore and its joint venture partners Mitsui and Itochu produce more than 50 million tons of iron ore a year from their Pilbara mines.

The biggest of these mines is the Whaleback deposit at Newman, about 1,200 kilometer north of Perth, which is also a center for smaller mines -- Oriebodies 23, 25 and 29 and Jimbleber.

BHP Iron also includes the Yandi, about 90 kilometers, north of Newman and Yarrie/Niminggara mines, about 208 kilometers east of Port Hedland.

Brian Steane, general manager of the Newman mine operation, said BHP Iron Ore had access to more than 10,000 million tons of iron ore, occurring in many different deposits.

He said trains stretching almost three kilometers transport the ore to Port Hedland, about 200 kilometers away.

"Each train has four locomotives and 240 ore cars, which haul more than 25,000 tons of iron ore," he said.

General Manager for Railways and Ports Derek Miller, said that since 1991 the annual shipping tonnages from Nelson Point and Finucane Island in Port Hedland had increased by over 15 million tons.

Last year, the shipments from Nelson Point and Finucane Island reached 50 million tons and 7.4 million tons respectively.

In 1996, 42 percent of the ore was shipped to Japan, 15 percent to South Korea, 13 percent to China, 12 percent to Europe, 11 percent to other parts of Australia, five percent to Taiwan and two percent to Pakistan.

Miller said the market in Asia was expected to grow by about 3.3 percent a year compared to the world forecast of 1.9 percent.

"Demand in Europe and Japan is expected to remain steady while China and Eastern Europe are projected to increase their purchases.

BHP Iron Ore is currently building a hot briquetted iron (HBI) plant to meet an increase in demand from steel makers at a total cost of about US$1.5 billion.

John Woolfrey, general manager for the HBI Operation said that the plant, which would have an annual capacity of about 2.5 tons a year, would start producing next year.

"A projected shortage of scrap steel, particularly in Asia, has boosted the potential for sales of our iron briquettes," he said.

In addition to BHP Minerals, BHP also has four other main divisions, BHP Steel, BHP Copper, BHP Petroleum and BHP Service Companies.

BHP Steel produces a wide range of steel products, from huge steel plates used in ship building to small nails, staples and pins.

The company exports about 40 percent of its steel products to Southeast Asia, North Asia, the Middle East, Europe and the west coat of the United States.

The business group, which booked an operating revenue of A$22.32 billion in the year that ended in May, is the world's seventh largest producer of black coal, the second largest producer of copper, 14th largest producer of crude steel, the third largest of manganese ore and 18th largest publicly-owned oil company. (hen)