Australia’s iron ore industry is bracing for disruption as Tropical Cyclone Zelia, a Category 5 storm, approaches Western Australia. The cyclone, the strongest to impact the region since 2007, is expected to make landfall on Friday west of Port Hedland, the nation’s largest iron ore export hub.
According to the Bureau of Meteorology, Zelia has intensified, with wind gusts reaching up to 320 km per hour. The storm’s development has been fuelled by sea surface temperatures of 32 degrees Celsius—the warmest recorded in January. If Zelia maintains its strength, it could surpass the impact of past major cyclones, including George in 2007 and Joan in 1975, a Bloomberg report noted.
Authorities have closed Port Hedland ahead of Zelia’s arrival, while Dampier and Varanus Island ports will shut at 6 p.m. local time. BHP has paused operations at Port Hedland and secured equipment, while Fortescue Ltd. has suspended non-essential travel to Pilbara sites. Rio Tinto Group has stated it is too early to assess how long port and rail operations will remain closed.
The cyclone is expected to move inland near key iron ore mines in the Pilbara region, bringing heavy rain that could flood open pits, muddy roads, and submerge rail lines essential for exports. The small town of Tom Price may also experience significant impacts.
Iron ore prices initially rose 1.8% in Singapore on Wednesday, marking the largest increase in nearly a week. However, prices eased below US$107 per tonne on Thursday as the market assessed potential supply disruptions.
The region is also home to major LNG facilities operated by Woodside Energy Group Ltd. and Chevron Corp. Both companies have stated they are monitoring the situation and implementing necessary safety measures. Shell Plc has temporarily halted gas offtake from its Prelude floating LNG facility until February 16 due to hazardous conditions caused by the storm.
“All floating production and storage offloading facilities offshore of Port Hedland have disconnected and are on standby to leave the area,” said Australia’s minister of resources, Madeleine King, in a LinkedIn statement.
Cyclone Zelia is the first cyclone of the season to make landfall, following a series of storms that have brought heavy rain to the Pilbara region. Last month, Cyclone Sean damaged a Rio Tinto port facility. Bloomberg noted that the company warned iron ore shipments would be impacted in the first quarter of 2025 but kept its overall guidance for 2025 unchanged.
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