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CSIROs iron ore research and development (R&D) capabilities range from exploration, mineral characterisation, and beneficiation to agglomeration and process modelling, with a particular focus on developing methods for removing impurities from the lower grade ores and counteracting their adverse effects on downstream processing. TCSIRO is working actively with the Australian iron ore industry to investigate ways to Toptimise the development of the massive sub-economic deposits of lower-grade ores and maximise their value and attractiveness in an aggressive international market place. This paper provides an overview of the Australian iron ore industry and CSIRO’s R&D activities in processing these lower-grade iron ores to ensure the future sustainable development of Australia’s iron ore industry.