SOURCE: The Pilbara Business Capability Register, Australia (2012)
The Pilbara is a large, dry, thinly populated region in the north of Western Australia known for its Aboriginal peoples, its stunning landscapes, the redearth and its vast mineral deposits, in particular iron ore.
The region has an estimated population of 48,610 as of June 2010. The Pilbara covers an area of 502,000 km², which includes some of Earth's oldest rock formations. It includes landscapes of coastal plains and mountain ranges with cliffs and gorges. The major settlements of the region are Port Hedland, Karratha and Newman.
THE RESOURCES BOOM IN AUSTRALIA SLOWING DOWN?
As the resources boom slows down in Australia and iron ore prices tumble, West Africa's untapped resources are drawing eyes away from the Pilbara.
With troubled times in the Pilbara as Gina Rinehart's Roy Hill mine defers construction, BHP cuts its workforce and expansion plans, and Fortescue slashes costs and workers, many major miners are looking to the next hot iron ore region, according to Mining Weekly.
It comes as iron ore exports from Port Hedland to China slip 9% this month, according to the website Australian Mining.
Some majors have already begun operations in the region, with Rio Tinto running the Simandou mine in Guinea, Vale in Liberia and Guinea, Arcelormittal and BHP Billiton in Guinea at the Nimba project, as well as BHP's interest in a mineral development agreement with the Liberian government, and Xstrata carrying out feasibility studies at its El Aouj, Askaf, and Lebtheinia iron ore projects in Mauritania.
According to Vale the iron ore projects in Guinea are considered to be "one of the best underdeveloped iron ore deposits in the world in terms of size and quality".
CHINA SHIFTING FOCUS
The Chinese have also been shifting their focus away from Australia and the relatively high cost of doing business to these new resources that are lower cost to operate.
Speaking at the 2012 Africa Down Under Conference earlier this year, John Welborn, the chief of Equatorial Resources, a junior which runs Badondo and Mayoko-Moussondji projects in the Republic of Congo, said that a major part of the Chinese move is due to the fact that it is looking for alternate supplies of iron ore.
He explained that more than 75% of its seaborne iron ore comes from Australia, Brazil, and India, adding that it is suffering from the high costs and low profitability of buying from foreign miners.
This was supported by the Wu Xichun China Iron & Steel Association which stated that "by 2015 China wants to import 50% of its iron ore from Chinese owned mines elsewhere in the world".
Welborn asked that if world demand doubles by 2030, where will the extra production come from?
WEST AFRICA
It is unlikely that Australia and Brazil alone will be able to fulfill this massive demand.
“This has caused a race to production along the West Africa coastline, with companies worldwide aiming to develop iron-ore projects,” said Welborn.
West Africa, or the 'new Pilbara' as some have called it, looks capable of filling this shortfall.
Particularly for Chinese companies looking to own and develop their own mines.
This was supported by Anglo Gold Ashanti CEO Mark Cutifani.
Speaking at the Sydney Mining Club earlier this year, he said that the next century will see China turn away from Australia and Brazil, and focus on the under developed resources that Africa has to offer.
