Business

Flooding impact could hit coal production levels

Peter Holt

AT LEAST one mine operation may be forced to announce a "force majeure" after being battered by cyclonic weather in Central Queensland.

The force majeure is a get-out-of-jail-free clause in coal contracts that allow mine companies to break a deal when faced by conditions out of its control, often considered "an act of God".

Yancoal and Peabody's Middlemount joint venture copped 420mm of rain when former tropical cyclone Oswald blanketed the region.

Yancoal is owned by the Chinese Government.

Spokesman Ian McAleese told APN its other two Central Queensland mines should be fine, but after Middlemount breached its levee wall, a force majeure could be on the cards.

"It's a bit too soon to tell at this point," he said.

The Queensland Resource Council chief executive Michael Roche said rail lines delivering coal from Blackwater and Moura to the Port of Gladstone were damaged after the area copped 800mm of rain.

"While the situation is still being assessed by network operator Aurizon (formerly QR National), these rail lines to Gladstone could be out of action for up to 10 days," he said.

Yancoal - like other mines - must also deal with the challenge of having its mine filled with water.

The Queensland Department of Environment said on Tuesday that no mine company had chased approval for a "temporary emissions licence" for a one-off permit to dump water.

Yancoal would likely be the first since laws creating the approvals were passed late last year.

"There is water in the pit so we have a three-week delay in production at Middlemount," Mr McAleese said.

"We have to pump the water out of the pit, but there's an environmental process to go through."

Mines owned by Anglo American, BHP Billiton Mitsubishi Alliance and Xstrata have each been affected by infrastructure issues, but were working to return to normal as soon as they could.

A BMA spokeswoman said any change in coal production would not be released until its next production report.

Topics:  coal, floods, production



Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

3 easy dinner recipes your kids will love, and so will you

No Caption

THERE is a middle ground! Dinners fit for kids and adults.

How to reduce your child's risk of food allergies

ABOUT 90% of food allergies are caused by just seven foods.

5 good mental health habits for kids (and parents)

CRYING OUT FOR HELP: The demand for counselling support for children and young people is increasing.

FORMING good habits early is critical for your child's mental health.

Smack or no smack - where do you stand?

THE debate is reignited - is smacking acceptable?

Susie O'Neill: Why I stopped smacking my children

Swimming legend Susie O'Neill says she has stopped smacking her kids.

“I (smacked) because that’s what I knew growing up."

Introducing a step-parent into the family

Introducing a step-parent into the family can be stressful for the children, as well as the new parent.

THERE is no easy way to introduce a step parent into the family.

VIDEO: Greens’ $100m pledge for Tweed Hospital

Greens' leader Richard Di Natale with Richmond candidate Dawn Walker.

Tweed Hospital funding if Walker elected

Murwillumbah Cup ready to explode on Sunday

Murwillumbah Cup action kicks off on Sunday

2016 Murwillumbah Cup arrives.

Latest deals and offers

Greens' announcement 3

Richmond candidate Dawn Walker announces $100m for Tweed Hospital, if elected

Greens' announcement - Dawn Walker

Greens' candidate Dawn Walker talks about Tweed Hospital

Greens' announcement 2

Richmond candidate Dawn Walker speaks about the Tweed Hospital.

Commercial Property June 16 edition

SNAPPED UP: A sushi shop in a106sq mground-floor tenancy with a 43sq moutdoor area in Southport Central Towers on the Gold Coast has sold for $954,000.

RealCommercial edition June 16, 2016.

Iconic North Coast hotel could sell for $80 million

ON THE MARKET: The Beach Hotel, Byron Bay.

Million-dollar views, good income, beer - what more could you want?