Division 35Production of iron ore pellets

### Division 35—Production of iron ore pellets 335 (1) The production of iron ore pellets is the physical and chemical transformation of iron ore to produce iron ore pellets that are for the production of steel and that have: (a) a concentration of iron (Fe) of at least 63%; and (b) a concentration of alumina (aluminium oxide (Al2O3)) of no more than 2%; and (c) a concentration of silicon dioxide (silica (SiO2)) of no more than 7%; and (d) an average diameter of between 9 and 16 millimetres. (2) The production of iron ore pellets is specified as an emissions‑intensive trade‑exposed activity. (3) The production of iron ore pellets is a moderately emissions‑intensive activity. > Note: See Part 4. (4) For the production of iron ore pellets, the basis for the issue of free carbon units is by a tonne of iron ore pellets, on a dry weight basis, that: (a) has a concentration of iron (Fe) of at least 63%; and (b) has a concentration of alumina (aluminium oxide (Al2O3)) of no more than 2%; and (c) has a concentration of silicon dioxide (silica (SiO2)) of no more than 7%; and (d) has an average diameter of between 9 and 16 millimetres; and (e) is produced as part of carrying on the emissions‑intensive trade‑exposed activity; and (f) is not a relevant product for the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; and (g) is of saleable quality. > Note: Relevant product and saleable quality are explained in Part 2. (5) For this Division: > iron ore means any form of iron ore product that has not been: (a) semi‑processed into iron ore balls; or (b) exposed to a hardening process by the application of heat or pressure; and includes magnetite ore that has been concentrated and hematite ore that has been crushed to varying extents.