Article by Jacinta Burton courtesy of Business News.
Capacity at the country’s largest iron ore port will grow by 41 per cent, under a state government plan that promises to satisfy each of the mining giants battling for a larger slice of the port of Port Hedland.
This afternoon, the state government unveiled the long-awaited port capacity plan for Port Hedland, with total capacity rising to nearly 700 million tonnes per year, including 660mt for iron ore exports.
Major miners BHP, Fortescue Metals Group and Roy Hill Holdings will benefit from a 25 per cent increase in capacity allocations.
FMG will also be allowed to develop a new shiploader on Anderson Point Berth 5, which will support exports from its Iron Bridge magnetite project.
New berths for iron ore, liquids and general cargo are all slated.
The new iron ore berth, Stanley Point Berth 3 at South West Creek, would be allocated to the newly-formed joint venture between Gina Rinehart’s Hancock Prospecting and Mineral Resources, provided it secures all necessary approvals.
The agreement, reached in November last year, would see Hancock subsidiary Roy Hill providing rail haulage and port services to both Mineral Resources and Hancock – a unique model of cooperation within the iron ore industry.
Mineral Resources said it was aiming – if the new berth was developed – to export at least 20 million tonnes of iron ore annually.
A final investment decision by the two parties is expected by in mid 2022.
The government’s plan will also increase capacity at the common user berths within the port, underpinning growth in direct shipping to the Pilbara and allowing junior miners to increase their exports.
The 41 per cent increase in capacity allocations is up from 495mt, which was set in 2012.
Throughput at the port has already exceeded this level, with a total last year of 546mt, inclkuding 523mt of iron ore exports.
Dredging will be undertaken to implement the new plan. The government said it was based on international navigation guidelines and simulation studies conducted over the past 12 months, and was in accordance with existing environmental approvals.
The decision is the product of a comprehensive two-year review by the Pilbara Ports Authority.
The government said port proponents are being consulted on the key principles of the plan and formal documentation, including specific capacity allocations and development approvals, is expected to be finalised by mid-2022.
Hancock Prospecting executive chairman Gina Rinehart said today’s confirmation of additional port capacity at South West Creek was the product of tireless work to expand capacity at the revenue earning port.
She said the decision promised to unlock a suite of growth assets, some of which would have otherwise been stranded, to bring more jobs, revenue and opportunities to WA.
Mineral Resources managing director Chris Ellison echoed her sentiments and said the development would allow the company to develop pit-to-port solutions and expand its ability to be a long-term, low-cost supplier of iron ore to international markets.
Brockman Mining, which has a logistics joint venture with MInRes, also hailed today’s agreeement, saying it “clears the path to unlock the significant value contained within the high quality ores at Marillana and Opthalmia”.
