Western Australian iron ore miner Fenix Resources (ASX:FEX) is bracing for significant operational disruptions as it faces the combined impact of Tropical Cyclone Narelle and a tightening global diesel supply.
The Bureau of Meteorology has warned that Narelle is rapidly intensifying off the northwest coast, with a trajectory threatening the Gascoyne and Mid-West regions as a "potentially destructive" system.
The Mid-West Port Authority has suspended all shipping at Geraldton Port, forcing Fenix to reschedule its March shipping program.
The closure is expected to weigh on sales volumes for the March quarter, though the company remains optimistic that operations will recommence by early April.
Compounding the weather-related risks is a critical shortage of diesel fuel, largely attributed to ongoing geopolitical instability in the Middle East.
The supply constraints have begun to ripple through the regional mining sector, prompting Fenix to scale back non-essential mining and haulage activities to preserve fuel.
Despite the headwinds, the board has reaffirmed its FY26 guidance, maintaining a sales target of 4.2 to 4.8 million tonnes at a C1 cash cost of $70–$80 per wet metric tonne.
Fenix management emphasised that healthy mine-site stockpiles should allow iron ore processing to continue provided fuel supplies stabilise.
At the time of reporting, Fenix Resources' share price was $0.33.