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Torrential rains stopped nearly a week ago but the mines in central Queensland’s Bowen Basin continue to be inundated by overland flows.
Although no comment was available from the Queensland Resources Council, in a release on the industry association’s website, CEO Michael Roche said the cost to the industry could run into the hundreds of millions of dollars.
Over the weekend of January 19-20, the Ensham thermal coal mine, about 40km east of Emerald, was cut in half as floodwaters moved down Theresa Creek and into the Nogoa River.
A 5000 tonne dragline was swept backwards and submerged as floodwaters moved into the mine’s lowest lying pit. Late on Saturday floodwaters broke into a second pit, swamping portable offices and a crane.
Ensham’s three remaining draglines, including the $100 million Bucyrus 8750, had been moved to higher ground and were not damaged.
Ensham Resources CEO John Pegler said the circumstances leading up to flooding of the site had never been seen previously, with the water level far exceeding the “one in a hundred years” magnitude.
As of Monday January 21 Ensham had declared force majeure, due to its inability to meet immediate shipping schedules. By Thursday January 24 BHP Billiton-Mitsubishi Alliance had also notified customers of its declaration of force majeure due to disruption of its Bowen Basin operations.
Wesfarmers, which mines at Curragh in the Bowen Basin, declared force majeure on January 15. The Mackenzie River, which threatens Wesfarmers' Curragh North Mine, is being held back by levees.
Macarthur Coal also reported some disruptions to coal operations, after the company’s Coppabella mine received over 223mm of rain in two days.
CEO Nicole Hollows announced a temporary suspension to mining, due to damage to haul roads, however the situation was not expected to have an impact on overall sales for the financial year.
On Friday, January 25, Macarthur Coal called force majeure on its export contracts, bringing to four the number of coal companies to have their product chains disrupted.
An Xstrata spokesman said that the company’s Newlands mine had been significantly affected by flooding, as had its Collinsville mine, though to a lesser degree.
It is expected that the disruptions to mining operations across the Bowen Basin are likely to increase expectations for contract price negotiations, particularly for hard coking coal.
Earlier this month the Macquarie Group raised its forecast for contract prices for coking coal to $150 a tonne for the Japanese financial year, which begins on April 1.
This is an increase of over 50 per cent on the current price of $98. Macquarie’s forecast for thermal coal also rose to $88 a tonne, up from the current Japanese financial year price of $56 a tonne.
Although no comment was available from the Queensland Resources Council, in a release on the industry association’s website, CEO Michael Roche said the cost to the industry could run into the hundreds of millions of dollars.
Over the weekend of January 19-20, the Ensham thermal coal mine, about 40km east of Emerald, was cut in half as floodwaters moved down Theresa Creek and into the Nogoa River.
A 5000 tonne dragline was swept backwards and submerged as floodwaters moved into the mine’s lowest lying pit. Late on Saturday floodwaters broke into a second pit, swamping portable offices and a crane.
Ensham’s three remaining draglines, including the $100 million Bucyrus 8750, had been moved to higher ground and were not damaged.
Ensham Resources CEO John Pegler said the circumstances leading up to flooding of the site had never been seen previously, with the water level far exceeding the “one in a hundred years” magnitude.
As of Monday January 21 Ensham had declared force majeure, due to its inability to meet immediate shipping schedules. By Thursday January 24 BHP Billiton-Mitsubishi Alliance had also notified customers of its declaration of force majeure due to disruption of its Bowen Basin operations.
Wesfarmers, which mines at Curragh in the Bowen Basin, declared force majeure on January 15. The Mackenzie River, which threatens Wesfarmers' Curragh North Mine, is being held back by levees.
Macarthur Coal also reported some disruptions to coal operations, after the company’s Coppabella mine received over 223mm of rain in two days.
CEO Nicole Hollows announced a temporary suspension to mining, due to damage to haul roads, however the situation was not expected to have an impact on overall sales for the financial year.
On Friday, January 25, Macarthur Coal called force majeure on its export contracts, bringing to four the number of coal companies to have their product chains disrupted.
An Xstrata spokesman said that the company’s Newlands mine had been significantly affected by flooding, as had its Collinsville mine, though to a lesser degree.
It is expected that the disruptions to mining operations across the Bowen Basin are likely to increase expectations for contract price negotiations, particularly for hard coking coal.
Earlier this month the Macquarie Group raised its forecast for contract prices for coking coal to $150 a tonne for the Japanese financial year, which begins on April 1.
This is an increase of over 50 per cent on the current price of $98. Macquarie’s forecast for thermal coal also rose to $88 a tonne, up from the current Japanese financial year price of $56 a tonne.
