Western Australia Set for Biggest Cyclone in Almost a Decade

(Bloomberg) -- Western Australia could be hit by the largest cyclone in almost a decade this week, with the weather system predicted to cross the coast near a major export port for iron ore that’s to be cleared of vessels.

Tropical Cyclone Ilsa is expected to intensify during Tuesday and Wednesday as it moves southwest parallel to the Kimberley coast, according to the bureau of meteorology. The cyclone is set to be the strongest to make landfall in Western Australia since December 2013, it said.

Australia’s western state — which is sparsely populated — is a major producer of commodities from liquefied natural gas to gold, and cyclones can halt production and damage facilities at ports and mines. Ilsa is poised to cross the coast north of the iron ore export harbor of Port Hedland early Friday.

Vessels will start being cleared from the Port Hedland inner harbor from 2 a.m. local time Wednesday, according to a notice from Pilbara Ports Authority. BHP Group and Fortescue Metals Group Ltd. ship iron ore from the port.

Iron ore prices in Singapore rose as much as 1.9% to $119.70 a ton.

Fortescue is preparing for the cyclone and has suspended all non-essential travel to its Pilbara operations until the weather risk has cleared, according to a spokesperson. At this stage, no significant impact is expected, they said.

Ilsa will be the sixth tropical cyclone and the strongest to cross the coast this season, which runs from Nov. 1 to April 30, according to the bureau. The only other cyclone to make landfall was Ellie in late December, which led to severe flooding through northern parts of Western Australia.

(Updates with iron ore prices, map and FMG comment.)

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