The Water Corporation is currently exploring the possibility of sourcing water from the private sector to address the increasing supply challenges faced by Port Hedland, a significant mining town in Western Australia. This initiative comes amid mounting pressure on water resources in the Pilbara region, where demand is projected to exceed available supplies by the early 2030s.
Just last week, Water Corporation, which is a state-owned enterprise, issued a call for expressions of interest from potential suppliers who can provide bulk water to Port Hedland, located approximately 1,630 kilometers northeast of Perth. With a population exceeding 15,000, this iron-ore hub has been seeking alternative water solutions for over ten years, highlighting the urgency of the situation.
A representative from Water Corporation stated, "To complement our ongoing assessments, we are utilizing a registration of interest (ROI) approach to evaluate large-scale proposals from third-party vendors. We will consider factors such as suitability, cost, reliability, and timing." The additional water supply would be used to bolster current groundwater sources, catering to both community needs—like drinking water and irrigation—and industrial demands, including ore processing.
However, it's important to note that this move does not imply that Port Hedland is at immediate risk of running out of water. This clarification came after leaked communications suggested there was insufficient water to support new major developments in the area, a claim that Water Corporation later retracted when it gained public attention.
The window for interested parties to express their interest in supplying additional water will close in early February. Notably, Water Minister Don Punch has chosen not to comment on the matter.
In its invitation to potential suppliers, Water Corporation acknowledged the significant impact climate change is having on Western Australia. The organization noted that pressures on water resources have intensified due to population growth and industrial expansion throughout the northern part of the state.
Port Hedland boasts the largest bulk export port globally and serves as a crucial operational hub for prominent Australian mining companies like Fortescue, BHP, and Rio Tinto. Currently, the town relies on about 14 gigalitres of water drawn annually from the Yule and De Grey bore fields. According to the ROI document, an additional supply of up to 10 gigalitres per year will be required starting in 2028, and this need will persist for over a decade. Previously, Water Corporation had estimated that Port Hedland would require an extra 7.5 gigalitres annually to meet its needs until 2050.
Jessica Shaw, the commissioner for the Town of Port Hedland, expressed her approval of Water Corporation's decision to seek "innovative" solutions. "Ultimately, we all bear the costs associated with water supply," she remarked. "The crucial factor is ensuring we find the most cost-effective solution for taxpayers and all water consumers. There was some misinformation and misstatements earlier that understandably led to concern."
Scott Ballem, the chief executive of the Port Hedland Chamber of Commerce and Industries, voiced his satisfaction with the steps being taken. "People are eager for immediate solutions to this pressing issue," he noted. "We hope these efforts will pave the way for a sustainable long-term resolution that supports our community's growth ambitions."
Concerns about water availability are not new to Port Hedland or the broader Pilbara region. A report published in 2010 by the then WA Department of Water had already recommended that an additional water source be secured for Port Hedland "before 2015." Two hours south, the city of Karratha recently reported that its primary water source reached its lowest recorded level since 1987, making the water from Harding Dam unsuitable for use due to its poor quality.
Shadow Water Minister Peter Rundle has called for greater transparency regarding the proposed third-party water supply. He stated, "I believe the Water Corporation should be open about the situation so that businesses and the public are fully informed about the water issues in the region. This is concerning for both industrial development and residential needs in one of Australia's most vital ports, not just in Western Australia but nationwide." Rundle indicated that he plans to bring this issue before parliament when it reconvenes in February.
