Dredging work as begun at the Lumsden Point project in Port Hedland, a major Australian import and export site. About 1 million cubic meters of material are set to be removed in the next eight weeks.
In a Monday (September 30) press release, Pilbara Ports said that the work has been made possible through AU$611.6 million in funding from the government, as well as companies in the mining industry.
The Australian government is contributing AU$450 million, with the money going toward new multi-user facilities and berths, and the Western Australian government is putting in AU$96.6 million.
Commodities giant BHP (ASX:BHP,NYSE:BHP,LSE:BHP), Fortescue (ASX:FMG,OTCQX:FSUMF), Roy Hill and a joint venture between Hancock Prospecting and Mineral Resources (ASX:MIN,OTC Pink:MALRF) have committed AU$65 million.
Once up and running, Lumsden Point will be used to export battery materials like lithium and copper concentrates, and to import renewable energy infrastructure such as wind turbines and blades.
David Michael, Western Australia’s minister for ports, said in Monday’s release that the project is expected to boost Australia’s gross domestic product by AU$2.1 billion per annum upon completion.
“It is expected to save 3.6 million tonnes of emissions by 2055 by supporting direct shipping to the Pilbara and providing a pathway for renewable energy infrastructure,” he explained.
Lumsden Point will provide support for federal government initiatives like the Critical Minerals Strategy 2022, and the Boosting Australia’s Diesel Storage Program. In addition, it will underpin initiatives from the Western Australian government, including the state’s Climate Policy and its Renewable Hydrogen Strategy.
The project is expected to drive employment and economic growth in the region.
Jan De Nul (Australia) was given the contract for dredging and land reclamation activities at Lumsden Point on June 7.
Extensive preparatory works for the project have already been completed, and environmental monitoring is being carried out to minimise the risk of impact to surrounding habitats.
Lumsden Point also has an approved environmental management plan, which states that dredged material “will be disposed of at a designated reclamation area within Lumsden.”
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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