Hot spot | port hedland www.yipmag.com.au 25
Hot spot | port hedland Map 2: Pilbara <strong>iron</strong> <strong>ore</strong> mines & deposits Source: FerrAus available at the centre. Upon its completion in August 2010, the centre will replace the existing <strong>Port</strong> <strong>Hedland</strong> health campus as the central healthcare hub for the Pilbara Gascoigne Health Region. 4. Marina and Retail Precinct Development The largest initiative to improve the <strong>town</strong>’s amenities and appeal is the ambitious $69m Marina and Retail Precinct Development at Spoil Bank. This 258-recreational boat pen marina, mixed use commercial and residential project will create a complex comparable to the best marinas in Perth and Queensland. Situated at the eastern edge of the port’s entrance, the tourism-focused development will involve extensive dredging and a 300-metre protective breakwall. Both low and high density options for development are being considered. 5. Road infrastructure upgrades The largest initiative underway is a $200m infrastructure project to upgrade and realign major roadways and build new bridges. This project is being jointly funded by the federal government ($160m) and state government ($60m) and will be vital to support the increased commercial, industrial and residential traffic as the <strong>town</strong> continues to rapidly expand. Other minor but significant projects include the following: • $9.6m increase in public amenities • $9m Finucane Island Community Function Centre • $9m <strong>Hedland</strong> Senior High School upgrade • $8.7m JD Hardie Youth Precinct • $8.2m Marquee Park community facilities • $6m in facilities and a new park for Cemetery Beach and Koombana • $5.3m Crime Prevention and Safety Initiative to increase security • $4.5m <strong>Port</strong> <strong>Hedland</strong> General Practitioner Housing Project to build nine new dwellings to attract GPs to the <strong>town</strong> Pilbara powerhouse The Pilbara is Australia’s primary <strong>iron</strong> <strong>ore</strong> region, with m<strong>ore</strong> than 20 operating mines (see Map 2). It is broadly split into two regions, according to the two railway networks owned by BHPB (East Pilbara) and Rio Tinto (West Pilbara). <strong>Port</strong> <strong>Hedland</strong> primarily services the East Pilbara <strong>iron</strong> <strong>ore</strong> mines along BHPB’s railway network and the relatively new FMG railway. However, there are a few smaller mines located on minor railway networks that the <strong>town</strong> also supports. The West Pilbara Rio Tinto railway network is serviced by Australia’s other WA <strong>boom</strong> <strong>town</strong>, Karratha, and its two nearby ports of Dampier and Cape Lambert. Since the early 1960s when large quantities of <strong>iron</strong> <strong>ore</strong> were first discovered, the Pilbara region has been exporting <strong>iron</strong> <strong>ore</strong> to steel mills all around the world. Initially meeting the demands of a growing Japan, then South K<strong>ore</strong>a and now China, the region has helped create two of the largest companies in the world – BHP Billiton and Rio Tinto. Today, Australia supplies approximately 16% of the world’s <strong>iron</strong> <strong>ore</strong> (according to the Australian Trade Commission), with the largest export markets being China (60%), Japan (25%) and South K<strong>ore</strong>a (10%). In 2009 the value of exports reached $29bn but are expected to soar to $47bn in 2010, according to the Australian Bureau of Agriculture and Resource Economics, as <strong>iron</strong> <strong>ore</strong> prices continue to rise on strengthening demand from China. The Pilbara region itself accounts for 89% of Australia’s <strong>iron</strong> <strong>ore</strong> deposits and, with 65 years of resources left at current production rates, has m<strong>ore</strong> than enough room to continue its rapid rate of mining expansion. Biggest port set to get larger <strong>Port</strong> <strong>Hedland</strong> is not only Australia’s largest exporting port but it is also the world’s largest bulk export port and biggest <strong>iron</strong> <strong>ore</strong> port. However, things are set to become even bigger. BHP Billiton has nearly completed its $2.1bn Rapid Group Project (RGP) 4, which will increase its annual export tonnage by 26 megatonnes. At the same time construction has already commenced on RGP 5, a mammoth $6.1bn project to increase tonnage a further 50 megatonnes which will lift its total annual tonnage to 200 megatonnes – 100% m<strong>ore</strong> than 2007 levels. BHP Billiton is not alone in its expansion plans: Fortescue Metals Group, Hancock Prospecting and Atlas Iron all have ambitious expansion plans to increase <strong>iron</strong> <strong>ore</strong> exports. In total, <strong>iron</strong> <strong>ore</strong> exports from <strong>Port</strong> <strong>Hedland</strong> are f<strong>ore</strong>cast to soar from 160 megatonnes in 2009 to 460 megatonnes 26 www.yipmag.com.au
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