Cyclone Zelia Strengthens Threatening Iron Ore Operations in Australia

Cyclone Zelia has strengthened to a Category 2 cyclone and may reach Category 3 as it approaches Western Australia’s Pilbara coast. Expected to bring heavy rains and damaging winds, the cyclone threatens operations at Port Hedland, the nation’s main iron ore export harbor, which is set to close temporarily. BHP and Fortescue are adjusting operations accordingly as flooding risks rise.

Tropical Cyclone Zelia has intensified off the coast of Western Australia and is forecast to make landfall on Friday near the significant iron ore export hub. According to the Bureau of Meteorology, Zelia may achieve Category 3 strength prior to landfall, producing heavy rainfall and strong winds as it approaches the Pilbara coast. The slow progression of the cyclone is expected to lead to substantial rainfall along its path.

Port Hedland, which serves as Australia’s largest iron ore export harbor utilized by BHP Group and Fortescue Ltd., is scheduled to cease operations at 6 p.m. local time on Wednesday. The current forecasts indicate that the cyclone will land to the east of this critical port. In light of the impending closure, BHP has initiated the gradual shutting down of its rail operations, while continuing mining activities unabated.

Cyclone Zelia poses a significant threat to Western Australia’s iron ore operations as it approaches the Pilbara region. Heavy rainfall and intense winds are expected to affect operations at Port Hedland, the primary export hub for iron ore. The effects of this cyclone could further exacerbate damages incurred from previous weather events this year, including potential disruptions to rail links essential for transporting ore.

Original Source: www.insurancejournal.com