Operations at BHP's Mount Whaleback iron ore mine in the Western Australia Pilbara region have been suspended due to a fire, the company's media relations team said Thursday.
"Operations have been suspended at Mt Whaleback in response to the fire," spokeswoman Amanda Saunders said, adding that the fire had been brought under control.
Earlier statements had confirmed that a fire had broken out, and all personnel at site had been accounted for.
"Further details of the incident are still being established but an investigation into the incident will be run," Neil Burrows, a second company spokesman said. There were mixed views on the potential market impact of the incident.
Some sources said it could potentially provide a short term lift, ending the recent decline in the iron ore market.
"I think it may bring a boost to the iron ore price if significant supply is disrupted," a central China mill source said.
"This incident could help support iron ore prices temporarily," a Shanghai trader also said.
But other sources were more bearish, adding that the iron ore market was under pressure from the immediate availability of stocks at Chinese ports.
"The market is too over-supplied for it [prices] to be affected," a second Shanghai-based trader said.
"No one was injured, so operations could be under control very soon," a Beijing-based trader said.
Mount Whaleback is part of the Western Australian Iron Ore system, consisting of four processing hubs and five mines. The mine is close to the Newman mining hub, which produces typical 63% Fe Newman fines.
In the year between April 2016 and March 2017, BHP 85% joint venture share accounted for 66.7 million mt of Newman fines, according to the company's latest operational report.
The remainder 15% of the Western Australian Iron Ore joint venture is owned by Mitsui and ITOCHU.
On Thursday, a 63% Fe Australian Newman fines was heard traded at $56.40/dmt CFR North China on COREX, loading June 1-10, 90,000 mt, according to sources with access to the platform.
In comparison, a 62% Fe Newman fines cargo was concluded at $57.90/dmt CFR Qingdao on globalORE, loading June 11-20, 80,000 mt, on Monday.
Platts assessed the 62% Fe Iron Ore Index at $57.40/dry mt CFR North China Wednesday, down $0.40/dmt from Tuesday and also down from $69.15/dmt on May 2.
On Thursday, in the Capesize freight market, BHP Billiton was heard to have withdrawn a vessel order to move 170,000 mt (plus/minus 10%) iron ore from Hedland to Qingdao, arrival into loadport June 15-18, according to shipping sources.
