07/11/2018 - 13:59

BHP facing ore shortfall

07/11/2018 - 13:59

Bookmark

Save articles for future reference.

BHP Billiton disclosed today that its iron ore stockpiles at Port Hedland will not be sufficient to cover the supply disruption caused by this week’s train derailment.

BHP says its iron ore stockpiles will run out before train operations resume. Photo: BHP

BHP Billiton disclosed today that its iron ore stockpiles at Port Hedland will not be sufficient to cover the supply disruption caused by this week’s train derailment.

Stockpile reserves at Port Hedland will be used over the coming days to maintain port operations however they are not expected to cover the entire period of interruption.

The company will be liaising with its customers in relation to contractual commitments over this period.

More than 130 people are working on the removal of train debris and repairs to BHP's rail network, with this number to increase as the track work ramped up.

At this stage the company expects to have partial rail operations in about one week.

It is estimated that about 1.5 kilometres of track was damaged when the company deliberately derailed a runaway iron ore train with four locomotives and 268 wagons.

The company expects the wreckage to be removed over the next few days, with track works commencing in parallel.

The incident started about 4.40am on Monday when the train began to move while the driver was outside conducting an inspection.

The train then travelled about 90km until about 5.30am when it was intentionally derailed from the Integrated Remote Operations Centre (IROC) in Perth.

The company said the derailment decision was made with safety as the highest priority.

The train derailed near Turner, which is about 120km south of Port Hedland.

BHP’s Pilbara mines produced 69 million tonnes of iron ore in the June quarter and the company had been projecting total production of between 273mt and 283mt for the year to June 2019.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options