SYDNEY, May 9 (Reuters) – Western Australia, which houses
the iron ore-rich Pilbara region, said it will start compulsory
acquisition of land to build a new deepwater port in
anticipation the state’s exports of the raw material will nearly
double by 2020.
Miners, including BHP Billiton and Rio
Tinto , are spending billions of dollars to
boost their iron ore output, convinced top market China’s
modernisation bid will sustain demand over the long term.
The proposed Anketell port, located near the Cape Lambert
port used exclusively by miner Rio Tinto to ship ore, will be
developed in stages as a multi-user terminal, with an ultimate
annual export capacity of more than 350 million tonnes,
according to a statement issued by Western Australia state
premier Colin Barnett on Wednesday.
Ports in the state’s Pilbara iron belt – the world’s biggest
single source of iron ore – are at near full capacity or off
limits to a legion of new mining companies sprouting up in the
region, leaving little choice but to build a new one.
Annual iron ore exports from the Pilbara totaled 452 million
tonnes last year, representing nearly half of all the globally
traded ore, and are forecast to climb to 900 million tonnes by
2020, according to government estimates.
Aquila Resources and Fortescue Metals Group
each want to take over construction of the Anketell
port once the land is acquired to meet the needs of new mines
both firms are digging in the Pilbara region.
The Western Australian state government, which stands to
reap hundreds of millions of dollars in mining royalties once
the port is built, has the final say on who conducts the work.
If selected for the construction, Aquila has said it would
move quickly to bring the port into operation, while Fortescue
has called for a slower development in stages so it has more
time to dig new mines.
Rio Tinto is already expanding its own ports at Cape Lambert
and nearby in Dampier ahead of a surge in its iron ore
shipments, which could see tonnages rise to as high as 353
million tonnes by 2016 from 230 million tonnes now.
BHP Billiton is also studying a plan for an outer harbour
development to increase shipping capacity at the Port Hedland
terminal, which it shares with Fortescue and Atlas Iron
.
Total iron shipments from Port Hedland climbed to 20.7
million tonnes in April from 18.66 million tonnes in
March.
Construction of the Anketell port and shipping corridors
will require the acquisition of 4,300 hectares of land,
according to the government statement.
No projection of the development cost was given, though
analysts estimate it could run as high as $3 billion.
The land identified for the project is covered by various
forms of tenure, including native title, pastoral leasehold,
private land and mining tenements, the statement said, adding
landholders would be compensated where required.
