Tropical Cyclone Zelia Forces Major Port Closures in Western Australia
Tropical Cyclone Zelia, a category five storm, is set to impact Western Australia’s iron ore export capabilities, forcing major port closures near Port Hedland. Leading mining companies have halted operations as residents prepare for severe weather conditions, and local supply stores are running low on essential items. Despite these interruptions, iron ore futures in Dalian remained stable amid market concerns.
Sydney – As Tropical Cyclone Zelia approaches Western Australia, the nation’s primary iron ore export center is taking proactive measures. The cyclone has been classified as a category five storm, the highest level, and is projected to make landfall near Port Hedland, bringing with it dangerous wind gusts reaching 320 kilometers per hour and intense rainfall across a vast but sparsely populated area.
To ensure safety, all major ports in the northwest have suspended operations. Port Hedland’s facility, the largest iron ore export terminal in the world, closed its doors on Wednesday. Subsequently, ports at Dampier and Varanus Island were also shut down by Thursday evening, along with Cape Lambert, responding to the storm’s imminent threat.
BHP Group, Fortescue, and Hancock Prospecting, which utilize Port Hedland, have halted activities for safety. Fortescue has additionally ceased operations at Iron Bridge and suspended non-essential travel to Pilbara sites. Meanwhile, Rio Tinto has also prevented operations at Cape Lambert and Dampier, indicating that ongoing weather conditions would disrupt first-quarter shipments.
As the cyclone looms, the 15,000 residents of Port Hedland are advised to stay indoors, with non-essential personnel relocated to safety. There have been reports of some supermarkets closing after essential supplies were depleted as residents stock up in preparation for the storm.
Despite the potential impact on iron ore supply from this weather phenomenon, Dalian iron ore futures remained unaffected, concluding Thursday without significant change, amid lingering concerns regarding US steel tariffs and possible taxes from India.
In April 2023, the region experienced Cyclone Ilsa, which, although a category five storm, largely spared populated areas like Port Hedland.
In conclusion, Australia is preparing for significant disruptions due to Tropical Cyclone Zelia, which has triggered the closure of major iron ore ports. BHP, Fortescue, and Rio Tinto have paused operations for safety, and local residents are urged to seek shelter as the cyclone approaches. While the cyclone poses a threat to supply, iron ore futures remain steady due to broader market concerns.
Original Source: www.chinadailyhk.com
