PORT HEDLAND PORT AUTHORITY

Facilitating Trade Growth in Port Hedland

Historic and Projected Growth

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Dredging To facilitate Existing Use and Develop Future Wharf Capacity

Recent Dredging: • 2010 950,000 maintenance dredging (PHPA) • 2010 5.5Mm3 capital dredging (AP3 FMG and RGP6 BHPB) • 2011 5Mm3 capital dredging – AP4 and SP1 & SP2 • 2012 2Mm3 capital dredging – SP1 & SP2 Future dredging: • Additional 9 Mm3 in SW Creek • 6Mm3 cyclone moorings • 2Mm3 Hunt Point (Tug Haven) • 40Mm3 Outer Harbour • 1.5Mm3 Lumsden Point (approx) • Ongoing maintenance dredging requirement of approx 200-400K per annum (excluding outer harbour)

Developments for Export of Iron Ore Inner Harbour Berths

17 Capesize Berths

7 General Berths

1600m Lumsden supply base with 140ha laydown

Tug Haven

• The new tug pen will be located at the harbour entrance.

• Work will commence mid 2012 and finish mid 2014.

New Tugs

• 22 tugs, self-contained maintenance, fuel supply and administration in cyclone rated facility.

• Larger 85t rotor tug fleet will offer improved towage operations for confined space operations in SW Creek, risk management, towage vessel capability, escort towage, redundancy etc.

PHPA’s Common User Utah Point Berth

12 months on

• Largest shipment - ‘Eridge’ – 120,000t

• Record month - October 2011 - 1,123,397t

• All customers are getting allocation or above

• 360 trucks per day hauling to the facility during peak times.

• 100% Cavotec usage on all vessels to berth

Operational Berths – last 18 months

• Utah Point – September 2010

• Finucane Island B – November 2010

• Finucane Island A – December 2010 • Anderson Point 3 – April 2012 • Nelson Point C & D – FOOS July 2012 NPC is currently being used as a layby berth.

The Need for Lumsden Point

• Currently reaching capacity on Berths 1, 2 and 3 for exports of Copper and Salt.

• Currently reaching capacity on Berths 1, 2 and 3 in imports of fuel, Ammonium Nitrate and project cargo.

• MOF facilities at Anderson Point (FMG).

• New MOF at Finucane Island including contract loud facility (as part of tug pen development).

PHPA’s Lumsden Hub Concept

• Phase 1 – Late 2013 – 140 Hectares • Phase 2 – 1100m Wharves • Phase 3 – 1600m Wharves – 240 Hectares

• Container and General Cargo

• Construction Components

• Molybdenum and Manganese processed product exports.

• Mining and Earthmoving Equipment

• Oil & Gas Supply Vessels Support Base

• Cement Imports

• Ammonium Nitrate Imports

Lumsden Point Hub - Opportunities

Outer Harbour Development

• The Port Hedland Outer Harbour will ensure the growth of mineral exports from the East Pilbara.

• BHP Billiton Iron Ore has received Federal environmental approvals for its export

expansion plans at the Outer Harbour. Pre-commitment funding of US$917 million will be used to begin dredging and procure long lead items to enable the construction of Phase 1.

• The first phase of the Outer Harbour development would include the construction of a

four kilometre jetty, a four berth wharf, 32 kilometres of dredged departure channel and landside infrastructure including stockyards and a rail spur. Start-up of phase one is scheduled for the first half of 2016.

• The proposal is scheduled to take eight years to construct over four stages, and on

completion will allow over 200 million tonnes of iron ore to be exported each year. • A further 8 berth facility is planned alongside BHPB’s 8 berths in the outer harbour with

common user shipping channel and turning basins.

Photo supplied by BHP Billiton

Potential Outer Harbour Design

300,000T+ Vessels

Biggest Reforms of State’s Ports in Decades Extract from Minister Buswell’s Media Release – 2 February 2012

The State Government today outlined its plans to undertake the biggest reform of the State’s ports in decades, to ensure the wealth generated by increasing commodity exports delivered greater benefits to the Western Australian community. Under the plan, seven of the State’s eight port authorities will be consolidated into four regional port authorities to improve efficiency and reduce red tape. “Since 2000, the value of WA's merchandise exports has risen by more than 300 per cent - from $25.4billion to $112.2billion - and our share of merchandise exports increased from 26 per cent to 46 per cent of the nation’s total. “There are currently 21 ports; and new ports will be constructed at Barrow Island’s Gorgon project, Wheatstone, Oakajee, James Price Point and Anketell. It clearly makes sense to consolidate all these existing and future ports into an appropriately managed regional port structure. Mr Buswell said amendments to legislation to enable the phased consolidation would be drafted this year and presented to State Parliament in 2013, with a staged implementation to commence from 2014. Pilbara Ports Authority comprising the ports of Port Hedland and Dampier, the proposed new ports at Anketell and Ashburton North; and the ports at Cape Preston, Port Walcott, Varanus Island, Barrow Island, Airlie Island, Thevenard Island and Onslow.

Thank You

South Hedland Boodarie Stockyards

Boodarie Industrial Estate

BHP Finucane Island

BHP Nelson Point

FMG

Utah

Lumsden Hub

Wedgefield

Port Hedland