Pilbara region takes cover as cyclone hits home

By Andrew Burrell
February 23, 2011 12:00AM

MAJOR petroleum and mining projects in Western Australia's Pilbara region were forced to suspend operations for the third time in a month yesterday as Tropical Cyclone Carlos battered the coast with 140km/h winds and heavy rain.

Loading of ships for export was halted after authorities at Port Hedland, which is used by iron ore miners BHP Billiton and Fortescue Metals Group, suspended operations due to the cyclone.

Plants across the Pilbara have experienced heavy rains that closed rail lines and roads.

A spokeswoman for Woodside Petroleum said production from its Enfield oilfield and Cossack Pioneer floating facility had stopped, while production from its Vincent oilfield remained shut-in due to planned maintenance.

Woodside chief executive Don Voelte said on Monday that plans for the $14 billion Pluto project near Karratha to be completed by August could be delayed by the wild weather in recent weeks, including Tropical Cyclone Bianca that hit the Pilbara last month.

The cyclones caused 20 days of lost production, which might not be recoverable, Mr Voelte said. "At this late stage of the project, it might be hard to make up any or all of that time," he said.

"It's a fact of life -- it's raining and raining and raining up there."

Apache Corporation said it halted production at its Stag and Van Gogh fields off Western Australia before Carlos, but output at Varanus Island continued.

On Monday, Rio Tinto warned that shipping volumes were likely to be affected this quarter as cyclones Carlos and Dianne hampered its operations.

Dianne moved further off the coast this week.

Fortescue said it was waiting to hear from the harbourmaster at Port Hedland as to when the port would reopen.

A spokeswoman for the port said it remained closed and on "yellow alert", although there was an expectation operations might resume late yesterday.

Smaller mine company Murchison Metals said its Jack Hills iron ore project in WA's mid-west had been suspended for at least 14 days because of heavy rain and floods, forcing at least two export shipments set to leave the port of Geraldton next month to be delayed.

(sourced:The Australian, Additional reporting:Dow Jones Newswires)

Tags:BHP Billiton, Australia's Fortescue Metals Group, Murchison Metals, Port of Geraldton, Australian iron ore shipment, raw material