Japanese steel producers briefed on steps to increase Pilbara port capacity

9/7/96

Premier Richard Court has outlined the steps being taken to increase port capacity in the Pilbara to key representatives of Japan's biggest steel producers.

The Premier, who is in Tokyo, briefed senior executives of Japan's seven major steel producers including Nippon Steel, Nippon Kokan, Sumitomo Metal, Kawasaki Steel and Kobe Steel as part of his two-week trade mission to Japan and Korea.

He said the expansion moves would double the potential export capacity for iron ore and other processed minerals, and cope with anticipated demand well into the next century.

"The steps now being taken show that Western Australia is serious about ensuring it can meet export demand for its raw and processed materials for the foreseeable future," Mr Court said.

"Moreover, they underscore the strength of our commitment to the excellent trade relationships we now enjoy with Japan and the other growing economies of Asia."

The Premier said recent studies of Port Hedland harbour had shown that there was enough shipping channel capacity to enable the port to export up to 120 million tonnes of cargo annually.

BHP Iron Ore has committed $370 million to upgrade its handling facilities to enable it to export up to 70 million tonnes of iron ore per annum by next year, and may increase that figure. The company is constructing a $1.4 billion hot briquetted iron (HBI) plant at Port Hedland to export 2.5 million tonnes of direct reduced iron, and building three new mines in the Pilbara.

At Dampier, a similar study on the port's channel capacity is in train, and is confidently expected to find that it will be able to handle 100 million tonnes of cargo annually. In 1995 Dampier handled over 66 million tonnes of cargo, involving 514 bulk carriers and 129 LNG carriers. With the various downstream processing projects planned for the Burrup Peninsula, the port expects that it will have such diverse cargoes as iron ore, direct reduced iron, steel, methanol, ammonia/urea as well as new LNG facilities and petrochemicals.

Hamersley Iron and Robe River Mining Associates already use the Dampier facilities. Hamersley Iron is in the process of spending $375 million on a new mine at Yandicoogina, while Robe River Mining is considering refurbishing and re-opening its pellet plant at a cost of $200 million.

The Premier said the State Government's Department of Resources Development study 'Western Australia Iron Ore Production to Processing' detailed four value-adding iron ore processing projects and six new iron ore mines which were either under construction or under consideration.

In addition to BHP's HBI plant at Port Hedland, Australian United Steel Industries (AUSI) and Mineralogy had proposed HBI plants, and Robe River was considering re-opening its Cape Lambert pellet plant. Four new mines had been proposed for BHP, and one each for Hamersley Iron (Yandicoogina) and for Hancock Resources at Hope Downs.