Australian miner BHP Billiton has announced that its port and rail operations at Port Hedland, Western Australia, are being ramped up following their suspension due to Tropical Cyclone Veronica. While initial inspections show no major damage to the company’s operations, isolated flooding both on site and in sections of the rail leading into the port has limited train movements. Consequently, the port is currently operating at reduced rates and is not expected to return to full capacity until later this month.
BHP’s preliminary estimate of the impact of the cyclone is a reduction in production of approximately six to eight million metric tons. As a result, the company’s 2019 financial year production and unit cost guidance are currently under review.