Mining in the Pilbara: A cut above the rest
Not only is WA’s Pilbara region known for its stunning landscapes, but it’s also home to the world’s largest and most economically significant iron ore deposits.
While copper, gold and iron ore deposits were identified in WA in the 1880s, the mining industry only started to develop in the Pilbara around the 1950s – 1960s.
One of the first major discoveries in the Pilbara, the Goldsworthy iron ore deposit, was discovered in 1938 and extensively surveyed in the 1950s by the Mines Department (now known as the WA Department of Energy, Mines, Industry Regulation and Safety).
In a call for tenders to develop Goldsworthy, the State Government invited further exploration for iron ore, with production beginning at Goldsworthy, Tom Price and Newman in 1969, Pannawonica in 1972 and Paraburdoo in 1973.
The promise of extensive iron ore deposits in the Pilbara supported the State Government’s lobbying of the Federal Government to end the export embargo of this mineral which was created prior to WWII to prevent exports to Japan.
In November 1960, the ban was partially lifted with the Federal Government agreeing the ban would continue for high-grade deposits but export of up to 1mtpa would be permitted from smaller unknown deposits.
The export ban was fully lifted in May 1966 and, by the end of the 1960s, iron ore exploration was generating enough wealth that WA was able to stop applying for money from the Commonwealth Grants Commission.
By the late 20th century, companies like Hamersley Iron, which is part of Rio Tinto (ASX: RIO), and BHP (ASX: BHP) began extensive operations in the region, rapidly increasing production to meet the rising global demand.
The Australian Mining Review speaks with WA Mines and Petroleum Minister David Michael about the history and future of iron ore mining in the Pilbara as well as the importance mining plays in the State’s economy.
“The Pilbara continues to be a critical region for iron ore production, shaping not only the local economy but also having significant implications for Australia’s position in the global minerals market,” he said.
“In FY23, WA’s resources sector achieved sales on production valued at $248b, with iron ore accounting for $139b of these sales.
“This growth was supported by improved Australian dollar prices and sustained high levels of production (860mt).”
Attractiveness of the Pilbara
A large portion of Australia’s economic wealth can be attributed to WA’s mining industry, but what makes the Pilbara so attractive in particular?
“While we know the Pilbara is rich in iron ore, finding the economically viable deposits isn’t as easy as putting a drill rig just anywhere,” Minister Michael said.
“Mineral exploration is therefore vitally important and programs such as the Exploration Incentive Scheme (an initiative that aims to encourage exploration in WA) plays a key role in locating major mineral deposits across the State.
“The Geological Survey of WA also plays an important role of decoding the geology of areas such as the Pilbara to increase our geological understanding of the region.”
A major drawcard for Pilbara operations is its geographical location which allows for shorter shipping routes to major Asian markets – most notably China which is the world’s largest importer of iron ore.
Minister Michael highlighted sustainable practices, the skilled workforce and technological advancements as the main factors.
“A well-trained and experienced workforce contributes to the efficiency and safety of mining operations, further supporting the industry’s competitiveness, while the use of advanced mining technologies, automation and data analytics enhances productivity, reduces operational costs and improves safety in mining,” he said.
“Many companies are investing in sustainable practices, such as reducing emissions and improving resource efficiency, which can enhance their competitiveness in an increasingly eco-conscious market.”
Driving manufacturing and production
To grow production in the Pilbara, major rail projects and road upgrades have begun, plus a new Vessel Traffic Services Centre has opened.
Rail projects
Almost $8m is being invested under the State Government’s Local Manufacturing Investment Fund (LMIF) to establish an iron ore railcar manufacturing production line and a centre of excellence in Karratha.
The CORE Innovation Hub’s Rail Collaboration Centre (RCC) will provide a platform to undertake testing, research and development in the manufacture of iron ore railcars.
With support from Rio Tinto, the RCC fills a gap as a platform to assess the development of new rolling stock, infrastructure, technology and ideas.
Vessel Traffic Services Centre
In late September, an integrated Vessel Traffic Services (VTS) Centre opened at the Port of Dampier to oversee commercial shipping for the West Pilbara region.
Coordinating more than 4280 vessel visits across the Dampier, Ashburton and Varanus Island ports in FY24, the VTS Centre will support the region’s long-term expansion, including the development of greenfield ports.
“As a geographically isolated state, our economy is highly dependent on high capacity and efficient ports,” Minister Michael said at the time.
“The new VTS Centre will expand marine infrastructure and operational capacity at the Port of Dampier.”
In addition to supporting maritime activity, the VTS Centre will also work alongside emergency services to assist with marine search and rescue efforts.
Pilbara Hydrogen Hub
In mid-August, ground was broken on upgrades to support the Pilbara Hydrogen Hub in Port Hedland.
Upgrades to the Lumsden Point access road and Pinga Street intersection will support the import of wind turbine and renewable energy components into the Pilbara, as well as the export of battery metals such as lithium and copper concentrates.
The new intersection is expected to improve traffic flow and reduce congestion at Lumsden Point and Pinga Street, while also facilitating the safe movement of oversize vehicles out of Lumsden Point.
Work follows the Federal and WA Government’s $140m agreement to build a hydrogen hub in the Pilbara and the combined investment will help build infrastructure to support hydrogen export as well as fund activities for a Clean Energy Training and Research Institute.
Dredging work begins at Lumsden Point
Over the next eight weeks, dredging is expected to remove around 1 million cubic metres of material from Lumsden Point in the Port of Port Hedland.
The dredging will create a deeper access channel, swing basin and berth pockets to ensure the safe and efficient berthing of vessels at the new Lumsden Point facility.
“The commencement of the dredging and reclamation works represents a significant milestone in the project’s advancement which will help diversify trade in the Pilbara,” Minister Michael said at the time.
“Upon completion, Lumsden Point is expected to boost Australia’s gross domestic product by $2.1b per annum.
“It is expected to save 3.6mt of emission by 2055 by supporting direct shipping to the Pilbara and providing a pathway for renewable energy infrastructure.”
Record shipments from Pilbara Ports
With 758.3mt of export passing through in FY24, Pilbara Ports achieved a fifth consecutive year of record-breaking throughput.
The Port of Port Hedland contributed significantly to this achievement, injecting 573.6mt and solidifying its position as one of Australia’s most valuable ports.
The commodities exported through Pilbara Ports in FY24 were valued at an estimated $173.2b, highlighting the significance of the region to the nation’s economy and global supply chain.
Pilbara Ports play a crucial role in Australia’s iron ore trade, handling around 80% of the national trade and 43% of the global trade.
“The Pilbara is the economic powerhouse of the nation and these impressive results are a clear example of that,” Minister Michael said.
“It’s fantastic to see Pilbara Ports continuing to meet industry’s growing export needs, as strong economic conditions across the Pilbara increase demand for port services.”
Future outlook
According to Minister Michael, the future of mining in the Pilbara looks promising and will be shaped by several key trends, such as technological advancements, sustainability initiatives, market demand, Indigenous engagement and economic resilience.
“Looking at technological advancements, the increased use of autonomous vehicles and drones will enhance efficiency and safety, while enhanced data collection and analysis will optimise operations and reduce costs,” he said.
“Stricter regulations will push companies to adopt greener practices, including reducing carbon footprints and improving waste management, with the integration of renewable energy sources such as solar and wind into mining operations expected to grow.
“Furthermore, as economies like China and India continue to grow, demand for iron ore will remain strong, driving investments in the Pilbara.”
We dig deeper with WA Mines & Petroleum Minister David Michael
AMR: Tell us a bit about yourself. How did you get into politics? What drives you?
DM: I grew up in Tuart Hill and have lived locally my entire life. I went to Tuart Hill Primary School and Servite College. I’m a life member of the Tuart Hill Cricket Club, a board member of Tuart Hill Primary School, and a patron of the Osborne Park Bowling Club.
I studied economics at the University of Western Australia (UWA) and while at university I joined both the Australian Labor Party and the Australian Republican Movement.
I was inspired to enter politics in 2005 because of the run-down state of the facilities at Grenville Reserve where I was opening batsman for the Tuart Hill Cricket Club.
I wanted this to change so at the tender age of 25, I put up my hand to run for local government and won. I was the youngest Councillor the City of Stirling has ever had.
It was a role I held for 12 years, including two years as Deputy Mayor.
Now, I am not claiming all the credit for the fantastic two-story multipurpose community facility that now stands where the old hall did – but I will say that this new facility has made a big difference to the local sporting community, is something I am proud of and a great example of how local government can help build social capital.
In 2017, I was elected to State Parliament as the Member for Balcatta in March 2017.
In 2021, I was appointed as the Cabinet Secretary and Parliamentary Secretary to the Premier after previously serving as the Government Whip in the Legislative Assembly for my term of Parliament.
In June 2023, I was appointed as Minister for Ports; Local Government; Road Safety; and Minister Assisting the Minister for Transport.
In December last year, I was handed the portfolio of Mines and Petroleum while relinquishing Local Government.
I enjoy playing cricket for my local club, where I have played over 250 senior game.
I am an avid Fremantle Dockers fan.