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Australia Iron Ore Ports Close to Prepare for Category 5 Cyclone

Australia's biggest iron ore export center, which is also the largest in the world, was braced for a powerful tropical storm on Friday, as residents rushed to stockpile essential supplies. The Australian weather bureau has upgraded Cyclone Zelia in the Indian Ocean, about 80 km north of Port Hedland. This is the highest category on the scale.

The weather bureau reported that the system will make landfall near Port Hedland, in the Pilbara Region, on Friday night. It is expected to bring wind gusts up to 200 mph and heavy rains to a sparsely-populated stretch of 550 km.

Forecaster Angus Hines stated that "we haven't yet seen the worst weather, but we are already seeing the rain numbers increase and some strong gusts of wind along the coast." Port Hedland, the largest iron ore exporter in the world, was shut on Wednesday. The ports of Varanus Island and Dampier, which are gathering and processing centers for oil and natural gas, were closed on Thursday. Cape Lambert also closed.

Port Hedland, used by BHP, Fortescue, and Gina Rinehart’s Hancock Prospecting is also used by Rio Tinto. The ports of Dampier and Cape Lambert are where Rio Tinto ships iron ore. BHP Group and Fortescue both announced that Port Hedland operations were halted due to safety concerns and that teams were instructed to take shelter at their homes or camps. Fortescue also announced that it had closed its Iron Bridge mine and cancelled all non-essential Pilbara travel. Rio has cleared all operations at Cape Lambert and Dampier ports and no ships or trains are operating in its ports. Rio also reiterated that weather conditions will affect its first quarter shipments.

Rio stated in a press release that the company was working to minimize impacts. It will also provide updates on its operations as necessary.

The financial results of all three Australian iron ore mines are due to be released next week. Dalian's iron ore futures did not react to the potential disruptions in supply from Western Australia on Thursday. The market was still impacted by concerns about U.S. Steel Tariffs and possible Indian taxes.

Iron ore is a primary raw material for steel.

Port Hedland residents, the majority of whom work for mining companies, were advised to take shelter inside, while staff who are not essential have been relocated to safer locations.

ABC News reported that some supermarkets were closed after people ran out of essential supplies. In April 2023 Cyclone Ilsa, a category 5 storm, hit the Pilbara as a category 5 storm, setting new wind speeds records, but mostly spared populated areas, including Port Hedland. (Reporting from Sydney by Renju José, Additional reporting in Melbourne by Melanie Burton; Editing Jamie Freed).

(source: Reuters)