In 1967, iron ore was discovered at Mount Whaleback, and a mining venture was undertaken that included the establishment of a new town, Newman, 426 km of rail from the mine to the port and the development of processing equipment at both Newman and Port Hedland. In 1986, at a cost of $87 million, the existing channel was dredged to allow larger ships to enter the port. Prior to dredging, the port was only able to load vessels of less than 2,000 tonnes, but today it is able to accommodate ships over 250,000 tonnes.