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| BHP port hedland |
BHP has approved a significant investment of AUD 1.4 billion to modernize infrastructure at Port Hedland, aiming to increase ore transshipment capacity and enhance operational reliability to meet medium-term iron ore production targets.
Infrastructure Upgrade to Meet Production Goals
BHP’s investment in Port Hedland focuses on constructing a sixth car dumper (CD6) and additional conveyors. These upgrades are designed to enhance ore unloading capacity and minimize downtime during scheduled equipment maintenance, starting in the 2028/2029 fiscal year. The goal is to increase the operational availability of car dumpers from the current 60% to over 90%, which will significantly improve iron ore production efficiency.
Additionally, the modernization will enhance ore mixing and screening capabilities, contributing to more stable and efficient operations. The construction work is slated to begin in December 2025, with the first raw materials processed by CD6 by the end of 2028.
Port Hedland’s Role and BHP’s Production Outlook
Port Hedland is a critical export hub for iron ore from the Pilbara region, playing a pivotal role in BHP’s global supply chain. The company aims to achieve an annual production target of 305 million tons, with the infrastructure upgrades helping to meet this goal. For the 2024/2025 financial year, BHP reported an increase in iron ore production by 1%, reaching 263 million tons, despite disruptions caused by cyclones in Western Australia earlier in the year.
The company initially forecasted production at the lower end of its expected range of 255–265 million tons, but final production came in at the higher end of the range, demonstrating resilience despite operational challenges.
ScrapInsight Commentary
BHP’s investment underscores a strategic effort to ensure long-term stability in Pilbara’s iron ore production. By enhancing infrastructure, BHP aims to strengthen its competitive edge in the global steel market. The project is also an important step in adapting to evolving supply chain dynamics and the growing emphasis on circular economy principles in the steel industry.
