Types of Iron Ore: Hematite vs. Magnetite (Updated 2023)

Iron Investing
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Iron ore is most often found in the forms of hematite and magnetite. Learn how these types of iron ore differ so you can make informed investments.

Knowing about the different types of iron ore is useful for investors interested in the space.

Iron, a key material in steel and other applications, is most often found in hematite and magnetite ores, though goethite, limonite and siderite ores are also common sources.

Below the Investing News Network has put together some basic information about hematite and magnetite ores, including what they are and where they’re found. Keep reading to learn more.


What is hematite ore?

Hematite ore, also called direct-shipping ore, has naturally high iron content suitable for steelmaking. Because of its high iron content, hematite ore must undergo only a simple crushing, screening and blending process before being shipped off for steel production. For that reason, hematite ore is important for many mining companies.

Hematite ore is found throughout the world, with major production hotspots being Australia, Brazil, China and India.

In Australia, hematite has been the primary type of iron ore mined since the early 1960s. Nearly all of Australia's iron ore exports are high-grade hematite ore, and the majority of its reserves are located in the Hamersley mountain range of Western Australia because the range sits on a banded iron formation.

Brazil is another of the world’s main sources of hematite ore. The country's Carajás mine, operated by major miner Vale (NYSE:VALE), is the largest iron ore mine in existence. Vale consistently ranks among the world's five largest mining companies and is the world's biggest producer of iron ore pellets. The company’s headquarters are in Rio de Janeiro, and its primary iron ore assets are in the Iron Quadrangle region of Minas Gerais.

A great deal of hematite ore is mined in China. Known reserves include the Tung-Yeh-Chen and Dongye hematite ore deposits.

What is magnetite ore?

The mineral magnetite actually has higher iron content than hematite. However, while hematite ore generally contains large concentrations of hematite, magnetite ore tends to hold low concentrations of magnetite. As a result, this type of iron ore ore must be concentrated before it can be used to produce steel. Magnetite ore’s magnetic properties are helpful during this process.

Magnetite ore may require more treatment than hematite ore, but end products made from magnetite ore are typically of higher quality than those made from hematite ore. That’s because magnetite ore has fewer impurities than hematite ore; in this way, the elevated cost of processing it can be balanced out.

Magnetite ore is currently mined in Minnesota and Michigan in the US, as well as in taconite deposits in Eastern Canada. A major mining site in Michigan is the Marquette Range, which hosts four types of iron ore deposits, including both magnetite and hematite ore.

In Minnesota, magnetite ore is mined mainly in the Mesabi Range, one of the four ranges that make up the state's Iron Range. In Canada, Labrador is home to the majority of magnetite ore mining. In particular, mining companies focus on exploration and development in the iron-rich Labrador Trough.

Cleveland-Cliffs (NYSE:CLF) is a major player in the magnetite ore industry. For instance, its Hibbing Taconite joint venture operates in Minnesota’s Mesabi Range and has an annual capacity of around 8 million metric tons of magnetite ore. The company is also the largest iron ore pellet producer in North America.

This is an updated version of an article first published by the Investing News Network in 2013.

Don’t forget to follow us @INN_Resource for real-time news updates.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

The Conversation (8)
Frederick Keady
05 Jan, 2016
Iron ore pellets are made from both magnetite and hematite ores. Hematite ores are concentrated using a flotation process. Pellets include a mineral binder that represents about 2% by weight. Much of the ore in pellets made from magnetite is oxidized to hematite during the high-temperature induration process that sets the binder. Induration is necessary to instill the durability necessary to support a blast furnace burden, and to mitigate fines generation during shipping & handling. Direct shipping lumpy ore is now very scarce. Fine iron ore must be agglomerated before being fed to a blast furnace either by pelletizing or sintering, which is normally done at the steel mill. Fine iron ore cannot be fed to a blast furnace, or it will plug. The burden b=must be sufficiently porous to allow the wind to penetrate the birden. Sintering also provides a means to recycle steel mill wastes, including pellet chips, pit scrap and BOF dust.
Frederick Keady
05 Jan, 2016
Iron ore pellets are made from both magnetite and hematite ores. Hematite ores are concentrated using a flotation process. Pellets include a mineral binder that represents about 2% by weight. Much of the ore in pellets made from magnetite is oxidized to hematite during the high-temperature induration process that sets the binder. Induration is necessary to instill the durability necessary to support a blast furnace burden, and to mitigate fines generation during shipping & handling. Direct shipping lumpy ore is now very scarce. Fine iron ore must be agglomerated before being fed to a blast furnace either by pelletizing or sintering, which is normally done at the steel mill. Fine iron ore cannot be fed to a blast furnace, or it will plug. The burden b=must be sufficiently porous to allow the wind to penetrate the birden. Sintering also provides a means to recycle steel mill wastes, including pellet chips, pit scrap and BOF dust.
Phil Plaisted
05 Jan, 2016
Atomic weights of Fe at 56 and oxygen at 16. In chemically pure minerals the percentage Fe in hematite Fe2O3 is 112/(112+48)=70%. Percentage Fe in magnetite Fe3O4 is 168/(168+64)=72.4%. In nature magnetite often contains impurities in the ore which makes the Fe content of mined ore lower than hematite. As stated the impurities in magnetite can be removed via processing often resulting in an Fe percentage higher than hematite.
Phil Plaisted
05 Jan, 2016
Atomic weights of Fe at 56 and oxygen at 16. In chemically pure minerals the percentage Fe in hematite Fe2O3 is 112/(112+48)=70%. Percentage Fe in magnetite Fe3O4 is 168/(168+64)=72.4%. In nature magnetite often contains impurities in the ore which makes the Fe content of mined ore lower than hematite. As stated the impurities in magnetite can be removed via processing often resulting in an Fe percentage higher than hematite.
Richard Flook
05 Sep, 2013
If I remember my chemistry, %Fe in (pure) magnetite is 70% and is actually higher than the %Fe in (pure) haematite which is 67.5%. So the opening line in the section on magnetite above is perhaps misleading since it is not the chemical composition which is the difference. The difference is the level of impurities in magnetite deposits which are removed by magnetic seperation and then pelletising is needed to agglomerate the fine magnetite material. This gives a pellet which is more expensive than high grade haematites but with a higher %Fe as the author then correctly states.
Richard Flook
05 Sep, 2013
If I remember my chemistry, %Fe in (pure) magnetite is 70% and is actually higher than the %Fe in (pure) haematite which is 67.5%. So the opening line in the section on magnetite above is perhaps misleading since it is not the chemical composition which is the difference. The difference is the level of impurities in magnetite deposits which are removed by magnetic seperation and then pelletising is needed to agglomerate the fine magnetite material. This gives a pellet which is more expensive than high grade haematites but with a higher %Fe as the author then correctly states.
Andrew Newell
05 Sep, 2013
The author has not done her research thoroughly enough : processing magnetite ores result in a significantly higher carbon footprint than with the processing of hematite ores.
Andrew Newell
05 Sep, 2013
The author has not done her research thoroughly enough : processing magnetite ores result in a significantly higher carbon footprint than with the processing of hematite ores.

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