With demand for iron ore holding up in China and Taiwan despite the financial crisis that hit Asian countries around the Pacific rim a few months ago, three heavy haul lines totalling some 450 km are under construction or planned in the Pilbara region of Western Australia.
The most extraordinary aspect of this scenario is that the four new mines which four competing companies are striving to develop to meet future demand are concentrated in quite a small area of the Central Pilbara, at the eastern end of the Hamersley ranges. Despite the fact that these mines are more than 300 km from the sea, three of the companies seem determined to ship the ore out on their own railway to the company port rather than buy capacity on a competitor’s line.
There are nearly 10 billion tonnes of iron ore in this area, and Australia already shares with Brazil some 60% of the world market. In 1996, Australian producers exported 134 million tonnes, and virtually all of it passed over the four railways in this region. In fact, net tonnes reported for 1996 totalled 142 million:
