Iron Ore Mining Market in North America to 2020 - Demand for Steel in the US to Boost Regional Iron Ore Production by GBIResearch

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									Iron Ore Mining Market in North
America to 2020
Demand for Steel in the US to Boost Regional Iron Ore Production
GBI Research Report Guidance




                                              GBI Research Report Guidance
                                              ·     The chapter begins with an executive summary, detailing key points from the report.
                                              ·     Chapter two provides an introduction to the report and a guide to the report’s contents.
                                              ·     Chapter three provides an overview of North American iron ore mining industry.
                                              ·     Chapter four contains the key growth factors and restraints affecting North America’s iron ore mining
                                                    industry.
                                              ·     Chapter five provides an overview of North America’s iron ore mining industry, with detailed
                                                    information about production, reserves and consumption.
                                              ·     Chapter six provides an overview of the US iron ore mining industry, the key growth factors and
                                                    restraints affecting the industry, detailed information about production, reserves, consumption and
                                                    trade. This section also includes the US fiscal regime, with a section dedicated to mining business
                                                    licenses, rights and obligation of the mining companies and lastly the fiscal terms defined in detail.
                                              ·     Chapter seven provides an overview of the Canadian iron ore mining industry, the key growth factors
                                                    and restraints affecting the industry, detailed information about production, reserves, consumption
                                                    and trade. This section also includes the Canadian fiscal regime, with a section dedicated to mining
                                                    business licenses, rights and obligation of the mining companies and lastly the fiscal terms defined in
                                                    detail.
                                              ·     Chapter eight provides detailed information of the top active projects and the future planned projects
                                                    in North America.
                                              ·     Chapter nine provides detailed information of the top iron ore producing companies in North American
                                                    iron ore mining industry. The section consists of the top producers of iron ore with their detailed
                                                    reports.




  © GBI Research. This is a licensed product and is not to be photocopied                                                 GBIMM0007MR / Published MAY 2012
                                                                                                                                                    Page 2
Executive Summary




                                              Executive Summary
                                              Modest Iron Ore Producing and Consuming Region
    North American produced an                North American produced an estimated 97.1 million metric tons (MMt) of iron ore in 2011. During the
    estimated 97.1 million                    forecast period from 2012 to 2020, iron ore production in North America is expected to grow at a
    metric tons (MMt) of iron                 Compound Annual Growth Rate (CAGR) of 4.1% to reach 140 MMt in 2020. The growth is accredited to
    ore in 2011.                              regional demand for steel from the US, coupled with demand from other steel producing countries such as
                                              China, Germany and France.
                                              North America’s iron ore consumption decreased from 90.1 MMt in 2000 to an estimated 61.7 MMt in
                                              2011. However, during the forecast period, the North American iron ore consumption is expected to
                                              increase at a CAGR of around 3.6% to reach 86.8 MMt by 2020.

                                                Iron Ore Mining Industry, North America, Production and Consumption (MMt), 2000-2020

                                                                      150



                                                                      120
                                                     Iron Ore (MMt)




                                                                       90



                                                                       60



                                                                       30



                                                                        0
                                                                            2000               2005                   2010                   2015                   2020
                                                                                                          Production       Consumption


                                                Source: GBI Research, United States Geological Survey (USGS) Mineral Yearbook, Interview with officials of United States Geological
                                                Survey (USGS), Steel Statistical Yearbook, Interview with officials of Government of Newfoundland and Labrador




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                                                                                                                                                                        Page 3
Executive Summary




                                              North America - Home to Substantial High Grade Iron Ore Reserves
                                              According to United States Geological Survey (USGS) 2011, the North American region (the US and Canada)
                                              contributed around 13.2 billion metric tons or 8% towards global iron ore reserves at the end of 2010. The
                                              US, with potential reserves of 6.9 billion metric tons or around 4% of the global iron ore reserves, has the
                                              largest iron ore reserves in the region, followed by Canada with a 3.6% share of the global reserves. North
                                              American iron ore reserves are predominantly magnetite and hematite grades which are rich in ferrous
                                              content and require no further beneficiation. North America’s iron ore reserves are mainly found in the
                                              provinces of Minnesota and Michigan in the US and in Quebec, Newfoundland and Labrador provinces of
                                              Canada.

                                                Iron Ore Mining Industry, North America, Iron Ore Reserves (%), 2010

                                                                             Middle East &
                                                                               Africa 2%
                                                                                                South & Central
                                                                                                 America 20%                           Canada 4%
                                                     Europe 34%



                                                                                                         North America 8%




                                                                                                                                  US 4%
                                                                                      Asia Pacific 36%


                                                Source: GBI Research, USGS




  © GBI Research. This is a licensed product and is not to be photocopied                                                   GBIMM0007MR / Published MAY 2012
                                                                                                                                                      Page 4
Table of Contents




                                              1         Table of Contents
                                              1   Table of Contents ........................................................................................................................................ 5
                                                  1.1      List of Tables .................................................................................................................................... 7
                                                  1.2      List of Figures................................................................................................................................... 8
                                              2   Introduction ................................................................................................................................................ 9
                                              3   North America, Iron Ore Mining Industry ................................................................................................. 10
                                              4   North America, Iron Ore Mining Industry - Drivers and Restraints ........................................................... 11
                                                  4.1      North America, Iron Ore Mining Industry - Drivers ....................................................................... 11
                                                      4.1.1      Availability of High Grade Iron Ore ....................................................................................... 11
                                                      4.1.2      Sustainable Amount of Iron Ore Reserves ............................................................................. 11
                                                      4.1.3      Infrastructural Facilities ........................................................................................................ 11
                                                  4.2      North America, Iron Ore Mining Industry - Restraints .................................................................. 12
                                                      4.2.1      Phenominal Increase in Demand from China ........................................................................ 12
                                                      4.2.2      Skilled Labor Shortages ......................................................................................................... 12
                                              5   North America, Iron Ore Mining Industry - Production, Reserves and Consumption ............................... 13
                                                  5.1      North America, Iron Ore Mining Industry - Total Production ........................................................ 13
                                                      5.1.1      North America, Iron Ore Mining Industry -North America Production vs. Global Production 15
                                                      5.1.2      North America Iron Ore Mining Industry - Total Production by Country ............................... 16
                                                  5.2      North America Iron Ore Mining Industry - Total Reserves ............................................................ 17
                                                      5.2.1      North America Iron Ore Mining Industry - North America Reserves vs. Global Reserves ...... 18
                                                      5.2.2      North America Iron Ore Mining Industry - Total Reserves by Country................................... 19
                                                  5.3      North America Iron Ore Mining Industry - Total Consumption ..................................................... 20
                                                      5.3.1      North America Iron Ore Mining Industry - North America Consumption vs. Global
                                                                 Consumption ......................................................................................................................... 22
                                                      5.3.2      North America Iron Ore Mining Industry - Total Consumption by Country ........................... 23
                                              6   The US Iron Ore Mining Industry............................................................................................................... 24
                                                  6.1      The US Iron Ore Mining Industry - Drivers and Restraints ............................................................. 24
                                                      6.1.1      The US Iron Ore Mining Industry - Drivers ............................................................................. 24
                                                      6.1.2      The US Iron Ore Mining Industry - Restraints ........................................................................ 25
                                                  6.2      The US Iron Ore Mining Industry - Production, Reserves, Consumption and Trade ...................... 26
                                                      6.2.1      The US Iron Ore Mining Industry - Total Production .............................................................. 26
                                                      6.2.2      The US Iron Ore Mining Industry - Total Reserves ................................................................. 29
                                                      6.2.3      The US Iron Ore Mining Industry - Total Consumption .......................................................... 32
                                                      6.2.4      The US Iron Ore Mining Industry - Exports and Imports Scenario ......................................... 35
                                                  6.3      The US Iron Ore Mining Industry - Fiscal Regime .......................................................................... 39
                                                      6.3.1      The US, Governing Bodies...................................................................................................... 39
                                                      6.3.2      The US, Governing Law.......................................................................................................... 39
                                                      6.3.3      The US, Mining Licenses and Permit ...................................................................................... 40
                                                      6.3.4      The US, Rights and Obligations ............................................................................................. 41
                                                      6.3.5      The US, Key Fiscal Terms ....................................................................................................... 41
                                              7   Canada Iron Ore Mining Industry .............................................................................................................. 46
                                                  7.1      Canada Iron Ore Mining Industry - Drivers and Restraints ............................................................ 46
                                                      7.1.1      Canada Iron Ore Mining Industry - Drivers ............................................................................ 46
                                                      7.1.2      Canada Iron Ore Mining Industry - Restraints ....................................................................... 47
                                                  7.2      Canada Iron Ore Mining Industry - Production, Reserves, Consumption and Trade ..................... 48
                                                      7.2.1      Canada Iron Ore Mining Industry - Total Production............................................................. 48
                                                      7.2.2      Canada Iron Ore Mining Industry - Total Reserves ................................................................ 51
                                                      7.2.3      Canada Iron Ore Mining Industry - Total Consumption ......................................................... 53
                                                      7.2.4      Canada Iron Ore Mining Industry - Exports and Imports Scenario ........................................ 56
                                                  7.3      Canada Iron Ore Mining Industry - Fiscal Regime.......................................................................... 61
                                                      7.3.1      Canada, Governing Body ....................................................................................................... 61


  © GBI Research. This is a licensed product and is not to be photocopied                                                                                      GBIMM0007MR / Published MAY 2012
                                                                                                                                                                                         Page 5
Table of Contents




                                                     7.3.2      Canada, Governing Law ........................................................................................................ 61
                                                     7.3.3      Canada, Fiscal Terms ............................................................................................................. 62
                                              8 North America Iron Ore Mining Industry Top Active and Planned Projects .............................................. 65
                                                 8.1      North America Iron Ore Mining Industry - Top Active Projects ..................................................... 65
                                                 8.2      North America Iron Ore Mining Industry - Planned Projects ......................................................... 66
                                              9 North America Iron Ore Mining, Top Iron Ore Producing Companies ...................................................... 67
                                                 9.1      Cliffs Natural Resources Inc. (Cliffs Natural) .................................................................................. 67
                                                     9.1.1      Cliffs Natural Resources Inc. (Cliffs Natural), Overview ......................................................... 67
                                                     9.1.2      Cliffs Natural Resources Inc. (Cliffs Natural), Business Description ....................................... 67
                                                     9.1.3      Cliffs Natural Resources Inc. (Cliffs Natural), Iron Ore Projects ............................................. 68
                                                 9.2      ArcelorMittal ................................................................................................................................. 69
                                                     9.2.1      ArcelorMittal, Overview ........................................................................................................ 69
                                                     9.2.2      ArcelorMittal, Business Description....................................................................................... 69
                                                     9.2.3      ArcelorMittal, Iron Ore Projects ............................................................................................ 70
                                                 9.3      Iron Ore Company of Canada (IOC) ............................................................................................... 71
                                                     9.3.1      Iron Ore Company of Canada (IOC), Overview ...................................................................... 71
                                                     9.3.2      Iron Ore Company of Canada (IOC), Business Description ..................................................... 71
                                                     9.3.3      Iron Ore Company of Canada (IOC), Iron Ore Projects........................................................... 71
                                                 9.4      United States Steel Corporation (USSC) ........................................................................................ 72
                                                     9.4.1      United States Steel Corporation (USSC), Overview ................................................................ 72
                                                     9.4.2      United States Steel Corporation (USSC), Business Description .............................................. 72
                                                     9.4.3      United States Steel Corporation (USSC), Iron Ore Projects .................................................... 73
                                                 9.5      ArcelorMittal USA LLC ................................................................................................................... 74
                                                     9.5.1      ArcelorMittal USA LLC, Overview .......................................................................................... 74
                                                     9.5.2      ArcelorMittal USA LLC, Business Description ......................................................................... 74
                                                     9.5.3      ArcelorMittal USA LLC, Iron Ore Projects ............................................................................... 74
                                                 9.6      Palladon Ventures Ltd. (Palladon) ................................................................................................. 75
                                                     9.6.1      Palladon Ventures Ltd. (Palladon), Overview ........................................................................ 75
                                                     9.6.2      Palladon Ventures Ltd. (Palladon), Business Description....................................................... 75
                                                     9.6.3      Palladon Ventures Ltd. (Palladon), Iron Ore Projects ............................................................ 76
                                              10 Appendix ................................................................................................................................................... 77
                                                 10.1 About GBI Research ....................................................................................................................... 77
                                                 10.2 Abbreviations ................................................................................................................................ 77
                                                 10.3 Methodology ................................................................................................................................. 78
                                                     10.3.1 Coverage ............................................................................................................................... 78
                                                     10.3.2 Secondary Research .............................................................................................................. 78
                                                     10.3.3 Primary Research .................................................................................................................. 78
                                                     10.3.4 Expert Panel Validation ......................................................................................................... 78
                                                 10.4 Contact Us ..................................................................................................................................... 78
                                                 10.5 Disclaimer ...................................................................................................................................... 79




  © GBI Research. This is a licensed product and is not to be photocopied                                                                                      GBIMM0007MR / Published MAY 2012
                                                                                                                                                                                         Page 6
Table of Contents




                                              1.1      List of Tables
                                              Table 1:     Iron Ore Mining Industry, North America, Total Production (MMt), 2000-2020.......................... 14
                                              Table 2:     Iron Ore Mining Industry, North America, Total Reserves (MMt), 2000-2010 ............................. 17
                                              Table 3:     Iron Ore Mining Industry, North America, Total Consumption (MMt), 2000-2020 ...................... 21
                                              Table 4:     Iron Ore Mining Industry, United States, Total Production (MMt), 2000-2020 ........................... 27
                                              Table 5:     Iron Ore Mining Industry, United States, Total Reserves (MMt), 2000-2010 ............................... 30
                                              Table 6:     Iron Ore Mining Industry, United States, Total Consumption (MMt), 2000-2020 ........................ 33
                                              Table 7:     Iron Ore Mining Industry, United States, Exports / Imports (MMt), 2000-2020 .......................... 36
                                              Table 8:     Iron Ore Mining Industry, United States, Export to Region and Destination Countries (MMt),
                                                           2010.............................................................................................................................................. 37
                                              Table 9:     Iron Ore Mining Industry, United States, Import from Countries of Origin (MMt), 2010............. 38
                                              Table 10:    Iron Ore Mining Industry, United States, Occupation Tax Rates (%), 2011 .................................. 41
                                              Table 11:    Iron Ore Mining Industry, United States, Alaska, Mining Tax on Net Income, 2011 .................... 42
                                              Table 12:    Iron Ore Mining Industry, United States, Federal Income Tax Rates (%), 2011............................ 43
                                              Table 13:    Iron Ore Mining Industry, United States, Federal Income Tax Rates (%), 2011............................ 43
                                              Table 14:    Iron Ore Mining Industry, Canada, Total Production (MMt), 2000-2020 ..................................... 49
                                              Table 15:    Iron Ore Mining Industry, Canada, Total Reserves (MMt), 2000-2010......................................... 51
                                              Table 16:    Iron Ore Mining Industry, Canada, Total Consumption (MMt), 2000-2020 ................................. 54
                                              Table 17:    Iron Ore Mining Industry, Canada, Total Exports and Imports (MMt), 2000-2020 ...................... 58
                                              Table 18:    Iron Ore Mining Industry, Canada, Export to Region and Destination Countries (MMt), 2010 .... 60
                                              Table 19:    Iron Ore Mining Industry, Canada, Royalty Rate(%), 2011 ........................................................... 62
                                              Table 20:    Iron Ore Mining Industry, Canada, Provincial Corporate Tax Rates (%), 2011 ............................. 63
                                              Table 21:    Iron Ore Mining Industry, Canada, Depreciation Rates (%), 2011 ................................................ 63
                                              Table 22:    Iron Ore Mining Industry, Canada, GST/HST Rates (%), 1997 - 2011............................................ 64
                                              Table 23:    Iron Ore Mining Industry, Canada, British Columbia, Mineral Land Tax Rates (%), 2011 ............. 64
                                              Table 24:    Iron Ore Mining Industry, North America, Top Active Projects .................................................... 65
                                              Table 25:    Iron Ore Mining Industry, North America, Planned Projects ........................................................ 66
                                              Table 26:    Iron Ore Mining Industry, North America, Cliffs Natural Resources Inc. , Major Iron Ore Projects
                                                           ...................................................................................................................................................... 68
                                              Table 27:    Iron Ore Mining Industry, North America, ArcelorMittal, Major Iron Ore Projects ...................... 70
                                              Table 28:    Iron Ore Mining Industry, North America, Iron Ore Company of Canada (IOC), Major Iron Ore
                                                           Projects ......................................................................................................................................... 71
                                              Table 29:    Iron Ore Mining Industry, North America, United States Steel Corporation (USSC), Major Iron
                                                           Ore Projects .................................................................................................................................. 73
                                              Table 30:    Iron Ore Mining Industry, North America, ArcelorMittal USA LLC, Major Iron Ore Projects ........ 74
                                              Table 31:    Iron Ore Mining Industry, North America, Palladon Ventures Ltd. (Palladon), Major Iron Ore
                                                           Projects ......................................................................................................................................... 76




  © GBI Research. This is a licensed product and is not to be photocopied                                                                                       GBIMM0007MR / Published MAY 2012
                                                                                                                                                                                          Page 7
Table of Contents




                                              1.2      List of Figures
                                              Figure 1:    Iron Ore Mining Industry, North America, Total Production (MMt), 2000-2020.......................... 13
                                              Figure 2:    Iron Ore Mining Industry, North America, North America Production vs. Global Production (%),
                                                           2011.............................................................................................................................................. 15
                                              Figure 3:    Iron Ore Mining Industry, North America, Total Production by Country (MMt), 2000 - 2020 ..... 16
                                              Figure 4:    Iron Ore Mining Industry, North America, Total Reserves (MMt), 2000-2010 ............................. 17
                                              Figure 5:    Iron Ore Mining Industry, North America, North America Reserves vs. Global Reserves (%), 2010
                                                           ...................................................................................................................................................... 18
                                              Figure 6:    Iron Ore Mining Industry, North America, Reserves by Country, 2000 - 2010 ............................. 19
                                              Figure 7:    Iron Ore Mining Industry, North America, Total Consumption (MMt), 2000-2020 ...................... 20
                                              Figure 8:    Iron Ore Mining Industry, North America, North America Consumption vs. Global Consumption
                                                           (%), 2011....................................................................................................................................... 22
                                              Figure 9:    Iron Ore Mining Industry, North America, Total Consumption by Country (MMt), 2000 - 2020.. 23
                                              Figure 10:   Iron Ore Mining Industry, United States, Total Production (MMt), 2000-2020 ........................... 26
                                              Figure 11:   Iron Ore Mining Industry, United States, United States Production vs. North America Production
                                                           (%), 2011....................................................................................................................................... 28
                                              Figure 12:   Iron Ore Mining Industry, United States, Total Reserves (MMt), 2000-2010 ............................... 29
                                              Figure 13:   Iron Ore Mining Industry, United States, United States Reserves vs. North America Reserves (%),
                                                           2010.............................................................................................................................................. 31
                                              Figure 14:   Iron Ore Mining Industry, United States, Total Consumption (MMt), 2000-2020 ........................ 32
                                              Figure 15:   Iron Ore Mining Industry, United States, United States Consumption vs. North America
                                                           Consumption (%), 2011 ..........................................................................
								
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