Major Iron Ore Ports Close as Tropical Cyclone Zelia Approaches Western Australia

Tropical Cyclone Zelia, a powerful category five storm, is expected to make landfall near Port Hedland, forcing the closure of major ports in Western Australia. Residents are preparing for the storm by stocking essential supplies. Key mining companies have paused operations for safety, while essential services are affected as supermarkets face shortages of supplies.

SYDNEY – Australia’s leading iron ore export hub is preparing for the arrival of Tropical Cyclone Zelia, which has prompted the closure of all major ports in the northwest. Residents are stocking up on essential supplies as the storm approaches, having been classified as a category five cyclone, the highest on the scale. Zelia is currently located in the Indian Ocean, approximately 80 kilometers north of Port Hedland.

The cyclone is projected to make landfall on Friday evening, with ports including Dampier, Varanus Island, and Cape Lambert having ceased operations as of the preceding days. Wind gusts are expected to reach up to 320 kilometers per hour, accompanied by heavy rainfall affecting a 550-kilometer stretch of sparsely populated areas. Forecaster Angus Hines indicated that while the storm’s intensity may still be building, initial strong winds and rainfall have already been observed along the coast.

Port Hedland, the world’s largest iron ore export terminal, has suspended operations since Wednesday for safety reasons. Major operators such as BHP Group and Fortescue have instructed employees to shelter at home or within their camps. Furthermore, Fortescue has halted its Iron Bridge mining operations and has canceled all non-essential travel in the region.

Rio Tinto has also suspended operations at its Cape Lambert and Dampier ports, ceasing all vessel and train movements. The company acknowledged that first-quarter shipments might be adversely affected by the current weather conditions but is taking steps to mitigate the operational impacts. Updates regarding operations will be provided as necessary.

Despite the cyclone’s potential to disrupt supplies from Western Australia, its effects were not reflected in Dalian iron ore futures, which experienced a decline. The primary raw material for steel production, iron ore continues to be a focal point in the industry. Port Hedland, home to approximately 15,000 residents—predominantly employed in the mining sector—has advised individuals to remain indoors, relocating non-essential staff to safer locations.

Additionally, some supermarkets have closed as they ran out of essential supplies amidst panic buying reported by ABC News. A similar cyclone event earlier this year, Cyclone Ilsa in April, also reached a category five level but spared populated areas, including Port Hedland, from severe weather effects.

In summary, Tropical Cyclone Zelia poses a significant threat to Australia’s iron ore export operations, prompting the closure of major ports and safety precautions for local residents. The cyclone’s impending landfall is expected to bring severe weather conditions, impacting operations of major miners like BHP, Fortescue, and Rio Tinto. The regional impact remains uncertain, yet industry leaders are actively monitoring the situation and will provide updates as conditions evolve.

Original Source: www.chinadailyhk.com