-- Port Hedland expects to shut temporarily later Tuesday

-- Last iron ore shipment expected to depart in the afternoon

-- Tropical low may reach cyclone intensity Wednesday

(Recasts lead, adds timing of last shipment to leave port in third paragraph)

 
   By Stephen Bell and Robb M. Stewart 
 

PERTH--A key port for exporting iron ore from Australia's north-western Pilbara region is planning to shut down as a tropical low threatens to develop into a cyclone.

The Port Hedland Port Authority has commenced tie-down procedures and should complete these later Tuesday, the authority said in a statement.

Major users have chosen to sail vessels from the port--with the last vessel expected to leave the inner harbor in the afternoon--as increasing swells, storms and heavy rainfall are forecast for the area, the authority said.

The system is moving southwest along the coast of the iron ore-rich region. The Bureau of Meteorology said the tropical low could reach cyclone intensity Wednesday, with gale winds of 100 kilometers an hour hitting between Pardoo and Dampier.

"We will continue to keep a close eye on the development of this system and watch for any signs of recurvature towards Port Hedland," the port authority said.

Port Hedland handled 25.9 million metric tons of iron ore in December. The port is used by BHP Billiton Ltd. (BHP), Fortescue Metals Group Ltd. (FMG.AU) and Atlas Iron Ltd. (AGO.AU).

Earlier this month, Cyclone Narelle, the first cyclone of a season that usually runs through April, briefly shut the Dampier and Cape Lambert ports used by Rio Tinto PLC (RIO) to export its iron ore from the Pilbara. Rio Tinto is the country's largest iron ore producer, followed by BHP and Fortescue.

-Write to Stephen Bell at djnews@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

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