Iron ore pathway

Australian producers can calculate the emissions intensity and create Product Guarantee of Origin (PGO) certificates for making batches of iron ore.

To do this, you’ll need to:

• identify and understand emissions sources
• understand co-products and losses
• provide your quantity information.

We’re developing calculators that will help you calculate emissions intensity using the supplied quantity information.

This applies to iron ore produced through mining, including iron ore that is either:

• sold as run of mine ore without further processing
• processed to improve quality through activities such as:
  • crushing
  • screening
  • separation
  • blending 
  • dewatering.

Measuring iron ore for certificates

For iron ore, the functional unit is 1 dry metric tonne (dmt). Each PGO certificate represents one whole dry metric tonne of iron ore.

A batch is the quantity of iron ore produced over a defined period that:

• is measured at the production gate (the point where iron ore is ready for delivery)
• has a single, consistent emissions intensity.

We only issue certificates for whole dry metric tonnes. For example, if a batch contains 10.5 dmt, we will only issue 10 certificates.

Producers may define separate batches where production processes differ. For example, where iron ore is produced with and without processing.

Production modules and emission sources

Minimum production module

All iron ore produced must include the iron ore production module, which covers:

• extraction of iron ore through mining
• activities undertaken as part of the mining process, such as ground preparation, dewatering, breaking up ore and waste rock, and on site transport
• blending of mined iron ore with externally sourced iron ore (where applicable)
• operation of equipment necessary to extract iron ore.

This is the minimum module and must be included in every eligible batch.

Optional production modules

Processing

If iron ore is processed to improve quality before delivery, the iron ore processing module applies. This module includes:

• blending the iron ore with externally sourced iron ore
• transporting the iron ore for the purposes of processing the iron ore 
• treating water associated with processing activities.

The processing module does not include sintering or pelletising. 

Processing is optional and applies where run of mine ore is not sold directly. If processing is included:

• emissions must be accounted for as part of the iron ore production
• iron ore sold without processing and processed iron ore may be reported in separate batches, where relevant.

Production emission sources

Depending on how the iron ore is produced, emissions may need to be accounted for from the following sources: 

• electricity supply and use
• fuel supply and combustion
• feedstock supply
• water supply
• synthetic gas use
• explosives supply.

Only emissions sources that occur for the batch need to be reported.

Delivery modules and emission sources

Iron ore produced may include delivery modules, each with their own associated emission sources.

Delivery related losses

Losses may occur after production (for example, during transport or handling). These are captured through measurement of the quantity of iron ore at the delivery gate rather than through a separate loss calculation.

The amount of iron ore that reaches the delivery gate is measured: 

• at the closes practicable point to the delivery gate
• in alignment with the monitoring and measuring requirements of the method.

Attributes shown on certificates

As well as the standard attributes listed on PGO certificates, certificates for iron ore include:

• the type of mineral iron oxide contained in the iron ore (for example, hematite, magnetite, or pisolitic limonite or goethite)
• iron content at the delivery gate 
• moisture content of the iron ore at the delivery gate.