Australia's resources sector will be trying to recover more than US$230 million worth of stalled business this week as companies resume operations after Cyclone Lua, reports the Sydney Morning Herald.
The category four storm crossed the north-west coast at the weekend, halting exports from Port Hedland for almost three days. The port would typically export about 1.57 million tonnes of ore in that time, and with the impasse pushing iron ore prices to more than US$147 a tonne in recent days, the value of lost business exceeds US$230 million at Port Hedland alone. There were interruptions at other ports in the Pilbara region of Western Australia and at offshore oil and gas rigs, meaning the full cost of the cyclone will be much higher.
BHP Billiton, which exports from Port Hedland, said it was unable to quantify the effect of the cyclone yesterday, saying it was monitoring the situation and would report any impact in its next production statement. Fortescue Metals Group said work had restarted at its inland and port operations, with no significant damage reported. Rio Tinto and Atlas Iron both said their operations were resuming.
While the effect of stalled exports cannot be mitigated entirely, most companies said they hoped to offset some of the lost time by various means, including the efficient use of stockpiles. Woodside Petroleum has restarted production at its Enfield oilfield, but production is still stalled at six other fields.
Portnews.ru
