Mining giant BHP's Newman iron ore rail line in Western Australia's Pilbara region is expected to restart at limited capacity on Wednesday, following a derailment on the line, a BHP spokesperson said, adding that no one was injured in the derailment.
The derailment occurred Monday, and an investigation has since been initiated.
Opinions on the impact of the derailment were mixed.
A Shanghai based trader said supply of the seaborne and port stocks iron ore market was ample and he did not expect any support from the derailment.
However, sources also said that the derailment also followed a fire at BHP's Mount Whaleback mine on June 1. The two disruptions combined could result in some potential tightness in supply.
"Even if the rail line is partially up, the shipment to port could still be quite slow overall," a Singapore based trader said, adding that the line was the critical lifeline in the overall operation.
The privately owned 426-km (264-mile) rail line from Newman to Port Hedland services the Mount Whaleback mine, and also branches out to the Jimblebar, Wheelarra, Yandi, and Mining Area C mining operations.
The rail line is part of Western Australia Iron Ore, which is a joint venture of BHP (85% ownership) and Mitsui and ITOCHU (together 15% ownership).
Platts assessed the benchmark 62% Fe Iron Ore Index at $54.55/dry mt CFR North China Wednesday, up $0.55 on the day.
