BHP braces for Port Hedland strike that could hit iron ore exports
Australian mining giant BHP is bracing for production disruption at the world's largest iron ore export hub after unionised workers at Port Hedland voted to take protected industrial action. The strike could begin as soon as next week.
ABC News reported that around 1,500 BHP workers under the Western Mine Workers Alliance have endorsed a strike at the Port Hedland operations in the Pilbara, citing wage and accommodation support demands. Union lead negotiator Brad Gandy said the vote passed with 87 percent support and that the strike could begin from 17 June. The port's annual 290 million tonne capacity could be affected.
BHP Australia President Geraldine Slattery said in a written statement that the company remains at the negotiating table and that its latest wage offer includes a 4.5 percent annual increase. Mineral Resources said it was assessing alternative loading capacity as a rival exporter. Concerns are mounting that Fortescue and Rio Tinto could face spillover at neighbouring ports.
According to Reuters, Singapore iron ore futures rose 1.3 percent after the news, trading near 110 dollars a tonne. BHP shares closed 0.9 percent lower on the ASX in Sydney. Citi analyst Paul McTaggart said a prolonged strike could create price pressure on global steelmakers. This is not investment advice.
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