News

Gina Rinehart’s Hancock Prospecting and Chris Ellison’s Mineral Resources have emerged as big winners from a government initiated review of iron ore export capacity at Port Hedland.

The two companies have been allocated capacity that would allow them to develop a new iron ore export facility at Stanley Point berth 3 at South West Creek.

MinRes has long lobbied the government to secure the hotly contested new berth but a deal struck with Mrs Rinehart in November appears to have sealed the deal, allowing the company to jointly develop and share the facility with Hancock and Roy Hill.

Existing port proponents BHP, Fortescue Metals Group and Roy Hill have also secured 25 per cent expansions in their respective port capacity allocations allowing them to fulfil their anticipated growth ambitions.

The review shows annual iron ore export capacity at Port Hedland can grow to 660 million tonnes, up from the 523Mt that was shipped through the port last financial year.

At total throughput of 546Mtpa, Port Hedland is already operating well above its nameplate capacity of 495Mtpa courtesy of maritime technologies that maximise port efficiency and safety.

The plan will also result in increased capacity at the common user berths within the port, supporting growth in direct shipping to the Pilbara and increased exports by junior miners.

Further dredging of the harbour will be required to implement the plan as well as landside infrastructure upgrades by the port proponents.

In a joint statement, Hancock and MinRes described the joint development of the new Stanley Point Berth 3 and the sharing of infrastructure as the first of its kind in Australia.

The two companies have already begun an expedited feasibility study into the project but the development remained subject to final investment decisions targeted for the middle of the year mid-2022 as well as other government approvals and corporate agreements.

Under the terms of the deal, Mrs Rinehart’s majority owned Roy Hill will develop and operate the project, providing rail haulage and port services.

Mrs Rinehart said the development would unlock a suite of iron ore growth assets, some of which would have otherwise have remained stranded.

Mr Ellison said SP3 would allow MinRes to ship at least 20Mtpa of iron ore. The company has lofty ambitions of boosting iron ore output from 14Mtpa to 92Mtpa within three to five years.

However it and Mrs Rinehart’s Atlas Iron are the last Pilbara iron ore players without designated port and rail infrastructure.

The government’s updated port development plan also provides for a future bulk liquids berth in South West Creek, the development of a second general cargo berth at Lumsden Point and a new FMG shiploader on Anderson Point Berth 5 to support exports from its Iron Bridge magnetite project.

Ports Minister Rita Saffioti said the government’s review of Port Hedland began in 2020 with the plan expected to be completed by the middle of the year.