Iron Ore

Domestic production of iron ore in 2000 increased by 9%, reflecting an increase in steel production with the attendant increase in pig iron production. Similarly, world iron ore output rose reflecting higher levels of steel and pig iron production. There were major acquisitions in the iron ore industry. Iron ore prices increased. Iron ore is essential to the economy and national security of the United States. As the basic raw material from which iron and steel are made, its supply is critical to any industrial country. Scrap is used as a supplement in steelmaking but is limited as a major feed material because the supply of highquality scrap is limited. However, alternatives, such as direct reduced iron (DRI), were available, and their use is growing. In 2000, the steel industry accounted for more than 98.5% of iron ore consumption. Iron ore is a mineral substance which, when heated in the presence of a reductant, will yield metallic iron. It almost always consists of iron oxides, the primary forms of which are magnetite (Fe 3 O 4 ) and hematite (Fe 2 O 3 ). Taconite, the principal iron ore mined in the United States, has a low (20% to 30%) Fe content and is found in hard, fine-grained, banded iron formations.