Heavy rain and destructive winds are expected to hit the region and surrounding areas by late Friday or early Saturday, the Bureau of Meteorology says.
The iron-ore export port of Port Hedland is being evacuated and residents in the cyclone's expected path have been urged to prepare their properties for dangerous weather and organise their emergency kits.
A cyclone warning is current for coastal areas from Cape Leveque to Mardie, including Port Hedland, Karratha, Dampier and Broome, as well as adjacent inland parts of the eastern Pilbara.
A cyclone watch is in place for the central and eastern inland Pilbara including Telfer, Newman and Paraburdoo, the far western inland Kimberley, the eastern Gascoyne including Meekatharra, and the far western interior.
At 5am (WST) on Friday the category 2 cyclone was estimated to be 580km north northwest of Karratha and 630km northwest of Port Hedland moving east southeast at 21km/h.
The bureau said Lua had begun to move towards the southeast and was expected to accelerate towards the east Pilbara coast during Friday.
"Lua is expected to intensify into a severe tropical cyclone during this morning and remain severe through to landfall," it said.
Gales are expected to develop between Mardie and Cape Leveque by late Friday or early Saturday.
Very destructive winds with gusts in excess of 170km/h are likely to develop in coastal areas near the centre of the cyclone during Saturday, the bureau said.
Gales are expected to extend inland through the central and eastern Pilbara and into the northeast Gascoyne and far northwest interior during Saturday and early Sunday.
Western Australia's Fire and Emergency Services Authority has warned there may be significant flooding in the north Kimberley region and minor flooding in the east Kimberley area on Friday.
Over the weekend heavy rain is also likely in the east Gascoyne and northern Goldfields while heavy surf conditions are expected along the east Pilbara and west Kimberley coast during Friday and Saturday.
Port Hedland Port Authority spokesman Steed Farrell said late on Thursday that the port closure and evacuation process had begun at about 4pm (WST) and the plan was to have the port fully evacuated and closed by mid-morning on Friday.
Mr Farrell said 39 vessels, including six in the harbour, were being moved to safer waters.
Oil and gas giant Woodside Petroleum has shut production at its Vincent and Enfield oil fields off the North West Cape and at the Cossack, Wanaea, Lambert and Hermes oil fields on the North West Shelf.
Chinese-owned CITIC Pacific Mining has begun reducing staff at its huge Sino Iron Ore project at Cape Preston and suspended all non-essential travel to the site.
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