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 djnews@dowjones.com
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