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The early development of Karara was supported through the exploitation of small-scale satellite deposits of hematite iron ore. Australia's iron ore industry is historically based on the mining, production and export of high-grade hematite iron ore.

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Iron ore - Wikipedia

Increasing iron ore demand, coupled with the depletion of high-grade hematite ores in the United States, after World War II led to development of lower-grade iron ore sources, principally the utilization of magnetite and taconite. Iron-ore mining methods vary by the type of ore being mined.

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