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Malaysia has a known iron ore reserve estimated at RM17 billion (as of 2013). Its highest quality iron ore is in Bukit Besi, a small town in Terengganu, which is believed to hold 50 million tonnes of reserves at 70% iron content on 2,400 hectares of land. Low grade deposits are found in Pahang, Johor, Perak, Kelantan, Kedah, and Melaka.


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Most reserves of such ore have now been depleted. Iron ore is the raw material used to make pig iron, which is one of the main raw materials to make steel. 98% of the mined iron ore is used to make steel. Indeed, it has been argued that iron ore is "more integral to the global economy than any other commodity, except perhaps oil".


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