Tropical Cyclone Zelia Forces Closure of Iron Ore Ports in Western Australia

Tropical Cyclone Zelia threatens Western Australia’s iron ore export operations, prompting closures of major commodity ports including Port Hedland. The category five storm, expected to produce severe wind gusts and rainfall, has led mining companies to shut down operations and advise employees to shelter. The situation unfolds amid comparisons to a previous cyclone, raising concerns about supply disruptions.

On Friday, Australia’s iron ore export hub prepared for Tropical Cyclone Zelia, a category five storm situated approximately 80 kilometers north of Port Hedland. This powerful cyclone prompted the closure of all major commodity ports in the northwest, as residents sought to gather essential supplies ahead of the storm’s anticipated landfall. The cyclone is expected to produce wind gusts reaching 320 kilometers per hour and heavy rainfall across the region.

Port Hedland, the world’s largest iron ore export port, had suspended operations on Wednesday. Other ports including Dampier, Varanus Island, and Cape Lambert also ceased activities to ensure safety. Leading mining companies such as BHP, Fortescue, and Rio Tinto have activated safety protocols, advising employees to remain sheltered as the storm approaches.

BHP Group and Fortescue Metals announced that their operations at Port Hedland were paused, ensuring safety protocols were in place for staff. Fortescue also halted operations at its Iron Bridge mine and canceled non-essential travel to the Pilbara area. Meanwhile, Rio Tinto confirmed that all operations at Cape Lambert and Dampier were suspended, acknowledging potential shipment impacts due to adverse weather.

Despite the significant threat posed by Cyclone Zelia, Dalian iron ore futures remained stable on Thursday, averting a decrease following recent increases. The residents of Port Hedland, primarily composed of mining personnel, were advised to seek shelter indoors, while some supermarkets faced closures as supplies dwindled amidst panic buying events prior to the cyclone’s arrival.

The comparison to Cyclone Ilsa, which struck the Pilbara region in April 2023 and reached category five status, also surfaces as recent historical precedent; however, that storm largely spared populated areas. As the situation evolves, updates from mining companies regarding operational status and supply impacts will be closely monitored in the coming weeks.

The imminent arrival of Tropical Cyclone Zelia has prompted the closure of major iron ore export ports in Western Australia, significantly affecting operations within the mining sector. Companies like BHP, Fortescue, and Rio Tinto are taking necessary precautions to ensure employee safety and prepare for potential disruptions to supply. The unfolding situation in Port Hedland is critical to the regional economy and will be assessed as conditions change.

Original Source: www.chinadailyhk.com