lcy: future low cost magnetite producer , page-3

"In 2010 magnetite accounted for approximately 30% of global iron furnace feed for steel production. In Australia, this figure was only 3%"

"Currently magnetite accounts for approximately 50% of global iron ore production. In Australia, this figure was only 4%"

Why the figure still 4% in Australia ??? Remember, everything Happens for a Reason:
- The Real FACT: Magnetite ore is low grade iron ore.
- Processing magnetite ore is Very expensive.
- Need lots of energy and water (remember, WA is dry desert)
- Carbon tax coming
- New Mining Tax start from 1 July 2012
- Why AGO sell Ridley Project? because it is magnetite ore.

I will list some source below:
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Mining tax will threaten SA iron ore industry

"SACOME says that state’s magnetite iron industry is under threat from the MRRT."

“We are disappointed that the second Exposure Draft (ED) of the MRRT legislation, makes no allowances for the differences between magnetite and hematite iron ore,”

http://www.miningaustralia.com.au/news/mining-tax-will-threaten-sa-iron-ore-industry-sac

Comment: new mining tax is "ok" for hematite iron miner, but threaten to magnetite miner, why ?

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"A Western Australian iron ore lobby group says it is concerned the inclusion of magnetite in the Government's mining tax could be a barrier to growth."

"Labor wants the tax to apply to coal and iron ore projects but says miners and processors of low quality iron ore, or magnetite, will pay little or no tax."

http://www.abc.net.au/news/2011-11-22/iron-producers-want-magnetite-mine-tax-exemption/3686388

Comment: magnetite classify as "low quality iron ore"

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Citic Pacific Mining said that it was disappointed in the decision to tax magnetite iron ore, a low-grade variety which needs processing before it can be sold. Producers of magnetite had hopes that it would be excluded from the tax because of its production costs.

http://www.chinamining.org/Investment/2011-11-25/1322182400d51742.html

Comment: "magnetite iron ore" is low-grade variety of iron ore family.

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MAGNETITE - Emerging producers fight for tax exemption

http://www.magnetitenetwork.com.au/wp-content/uploads/2011/08/111102-Media-Release-Exempt-Magnetite-from-Mining-Tax.pdf

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Give us a chance, say magnetite miners


http://www.theaustralian.com.au/business/companies/give-us-a-chance-say-magnetite-miners/story-fn91v9q3-1226130912552

Comment: new carbon tax will kill lots of energy hungry business:
- Alcoa and RIO shutdown their aluminium plant
- Steel industry can't make profit without government assistance.
- Grange Resources build magnetite processing plant in Malaysia

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Mining should be excluded from carbon tax: magnetite miner

"Australia’s largest magnetite producer is expecting to be out of pocket $11 million by the Gillard government’s carbon tax and diesel fuel rebate."

http://www.miningaustralia.com.au/news/mining-should-be-excluded-from-carbon-tax--magneti

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all above information should explain why magnetite accounts for approximately 50% of global iron ore production. but in Australia, this figure was only 4%