Australia’s Iron Ore Hub Faces Strongest Cyclone Since 2007

Australia’s iron ore hub is bracing for the strongest cyclone to hit the region since at least 2007, threatening port facilities and big mines operated by companies including Rio Tinto Group and BHP Group.

Severe Tropical Cyclone Zelia has rapidly intensified into a Category 5 system, the strongest on the Australian scale, according to a notice from the Bureau of Meteorology. The storm is expected to make landfall on Friday west of Port Hedland, the nation’s biggest iron ore export harbor.

Very destructive wind gusts of up to 320 kilometers (199 miles) per hour are likely close to the center of the cyclone as it crosses the coast. Port Hedland has been closed, while Dampier — which exports iron ore and liquefied natural gas — and Varanus Island will shutter at 6 p.m. local time.

Zelia will make landfall in a sparsely populated area.

Cyclone Zelia Strengthens Off Australia’s Major Iron Ore Hub

The bureau said that sea surface temperatures of 32C (90F) are the warmest on record for any January, helping to fuel Zelia’s rapid intensification.

Should Zelia hold its forecast track and scale, it will be the first Category 5 to cross the Western Australian coast near Port Hedland since George in 2007, according to the Bureau of Meteorology. If Zelia’s wind gusts are maintained, it will be even stronger than George and Cyclone Joan in 1975.

Zelia is moving very slowly toward Port Hedland, and there is potential for it to intensify further if it stalls for longer over the very warm waters, according to the US Joint Typhoon Warning Center. However, if the cyclone becomes completely stationary, it may weaken.

Australia is the world’s biggest shipper of iron ore and the Pilbara is the major source of the nation’s production. Export ports have been lashed by heavy rain this year from a series of storms, but this is the first cyclone of the season that will make landfall and threaten mining operations.

Cyclone Damage

On its current forecast track, Zelia will still have cyclone strength as it moves inland near major iron ore mines in the Pilbara region toward the small town of Tom Price. Heavy rain threatens to pool in open pits and muddy roads, and risks swamping rail lines that export iron ore to ports.

BHP said its Port Hedland operations have paused and equipment tied down in preparation for the cyclone. Fortescue Ltd. said non-essential travel to its Pilbara operations have been suspended, while Rio said it was too early to determine how long port and rail operations will be closed.

Cyclone Sean last month damaged a port facility owned by Rio. The company warned that iron ore shipments would be affected in the first quarter, but kept its overall guidance for 2025 unchanged.

Iron ore prices closed 1.8% higher on Wednesday in Singapore, the biggest gain in almost a week, but eased below $107 a ton on Thursday.

Gas Facilities

The region is also an exporter of liquefied natural gas, with plants operated by Woodside Energy Group Ltd. and Chevron Corp. dotting the coast. Chevron said it was monitoring the situation, while Woodside said it was taking the necessary precautions to safeguard its people and assets.

Shell Plc has halted gas offtake from the Prelude floating LNG facility to the northeast of Port Hedland until Feb. 16 due to “challenging conditions” posed by the storm, according to a spokesperson from the company.

“All floating production and storage offloading facilities offshore of Port Hedland have disconnected and are on standby to leave the area,” Australia’s Minister of Resources Madeleine King said in statement on LinkedIn.