Hematite iron ore deposits are currently exploited on all continents, with the largest intensity of exploitation in South America, Australia and Asia. Most large hematite iron ore deposits are sourced from metasomatically altered banded iron formations and rarely igneous accumulations.

     Hematite iron is typically rarer than magnetite bearing BIF or other rocks which form its main source or protolith rock, but it is considerably cheaper and easier to beneficiate the hematite ores and requires considerably less energy to crush and grind. Hematite ores however can contain significantly higher concentrations of penalty elements, typically being higher in phosphorus, water content (especially pisolite sedimentary accumulations) and aluminium (clays within pisolites).