Most Australian Iron-Ore Exports Halted Due to Cyclone Threat

   By Stephen Bell 
 

PERTH, Australia--The bulk of Australia's iron-ore exports have been halted Sunday as key ports and mines in the resource-rich Pilbara region close ahead of an expected battering from Cyclone Christine in the next few days.

Rio Tinto PLC (RIO) and BHP Billiton Ltd. (BHP.AU), Australia's two biggest iron-ore exporters, separately ceased shipments of the steel-making ingredient as their ports were shuttered ahead of Christine, which is due to cross the Pilbara coastline late Monday.

Australia is the world's biggest exporter of iron ore, which is one of the key raw materials used to produce steel for construction of high-rise apartment buildings, the manufacture of luxury cars and other uses.

The cyclone currently lies west of the seaside resort of Broome in the northern part of Western Australia state, and is expected to intensify as it moves southwest toward the Pilbara coast, Australia's Bureau of Meteorology said in an update.

A severe impact on the Pilbara is likely late on Monday or early Tuesday, and this may include very destructive winds with gusts in excess of 165 kilometers an hour (102.5 miles per hour) near the cyclone center, the bureau added.

Port Hedland, Australia's biggest iron-ore port, completed the evacuation of shipping vessels ahead of the official closure early Sunday morning, the port's authority said in a statement.

BHP Billiton is the major user of Port Hedland, alongside Fortescue Metals Group Ltd. (FMG.AU) and Atlas Iron Ltd. (AGO.AU).

"Port Hedland and our Yarrie mine are on Blue Alert, and we are progressively securing port, rail and mine infrastructure and tying-down equipment at these sites," BHP said in a statement.

Rio Tinto, meanwhile, said its mine and rail operations continue to operate but ship loading has stopped at the Cape Lambert and Dampier ports near Karratha.

"We are closely monitoring the situation," a spokeswoman said.

Alongside Rio's two iron-ore ports, Karratha houses an important oil and gas hub that includes the Woodside Petroleum Ltd. (WPL.AU)-operated North West Shelf and Pluto liquefied natural gas export ventures.

"Woodside is taking all necessary steps to safeguard its people and assets in response to Tropical Cyclone Christine," a spokeswoman said.

Write to Stephen Bell at [e-mail]

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