The state government is expected to approve a $180 million upgrade of Port Hedland’s port facilities in the next fortnight, soon after selecting a preferred site for the Pilbara region’s next major iron ore port.
The state government is expected to approve a $180 million upgrade of Port Hedland’s port facilities in the next fortnight, soon after selecting a preferred site for the Pilbara region’s next major iron ore port.
These decisions will add to the hundreds of millions of dollar being invested in new port facilities in WA to accommodate the boom in mineral exports.
In the Pilbara, iron ore miners BHP Billiton and Rio Tinto are in the midst of massive expansions, while Fortescue Metals Group is building its own port facilities.
Port authorities in Geraldton and Esperance are currently expanding their facilities and the potential for a new deepwater port at Oakajee, north of Geraldton, is being closely examined.
As well as these regional projects, Fremantle Ports and private company James Point Pty Ltd, backed by BGC boss Len Buckeridge, are evaluating new port projects at Cockburn Sound.
Planning and Infrastructure Minister Alannah MacTiernan announced last week that Ronsard Island, about 80 kilometres west of Port Hedland, was the preferred site for the Pilbara’s next port.
Ms MacTiernan said the port could be needed in just six years’ time if the iron ore industry maintained its rapid expansion.
The current ports at Dampier, Cape Lambert and Port Hedland have the capacity to handle 240 million tonnes.
Ms MacTiernan said their capacity could be expanded to about 540mt, but this was well below the possible future export demand of up to 890mt.
“That is why the government has begun the process of selecting a site for a new port with a capacity of more than 300 million tonnes,” she said.
Engineering firm WorleyParsons, which is also the main contractor on FMG’s Pilbara iron ore project, evaluated six sites and concluded that Ronsard Island had the greatest potential to satisfy multiple users at the necessary scale.
The criteria for assessing sites included their proximity to likely areas for iron ore mining expansion and potential environmental impacts.
Meanwhile, state cabinet is expected to approve the planned development of a new general cargo berth at Port Hedland.
The expansion plans will accommodate growth in exports by companies like copper miner Aditya Birla Minerals as well as imports of general cargo.
The Port Hedland Port Authority wants an early commitment on its expansion plans so that it can use the same dredge as FMG, once that company has completed its own work program.
FMG contracted Jan De Nul Group, which is about half way through a 10-month dredging program.
The port authority would achieve substantial savings if it did not have to mobilise a separate dredge for its project, which requires only a couple of weeks of dredging.
In the Mid-West, Geraldton Port Authority is spending $35 million upgrading one of its berths to a dedicated iron ore berth.
Once Geraldton reaches its capacity of about 20mt, the region will require development of a new port at Oakajee.
Esperance Port Authority is spending $21 million for a new bulk storage facility and shore-based crane to support BHP Billiton’s Ravensthorpe nickel project.
