UK-headquartered diversified global miner Anglo American has declared force majeure regarding its coal operations in Australia's coal-rich Queensland state, as a result of severe rain in the region.
Commenting, Anglo American said, "Adverse impacts due to flooding vary across our operations and include disruption to road access, production and rail transportation," adding that the full effect of the weather conditions still remains to be determined since rainy weather continues, with further rain forecast. The affected mines are Callide, Dawson, Foxleigh, German Creek and Moranbah North.
Australia is the world's biggest coal exporter, supplying around two thirds of the seaborne trade in coking coal. Queensland's ports currently have an annual coal export capacity of 225 million mt per annum.
Companies declare force majeure when they cannot honor legal contracts due to unforeseen acts beyond their control.
Other force majeure declarations
As SteelOrbis previously reported, on December 29, Rio Tinto announced force majeure for operations in Queensland where its subsidiary Rio Tinto Coal Australia has a majority interest, namely in Hail Creek, Kestrel, Blair Athol and Clermont.
Swiss miner Xstrata's Rolleston thermal mine and Australia-based low volatile pulverized coal injection (PCI) producer Macarthur Coal's Coppabella and Moorvale PCI mines and the Isaac Plains metallurgical/thermal coal mine, an equal share joint venture between Australia-based Aquila Resources and Brazilian mining giant Vale, all also declared force majeure earlier in December.
The region's giant coal producer BHP Billiton-Mitsubishi Alliance is also reported to be invoking the legal clause on coal supplies, namely in Peak Downs, Goonyella, Norwich Park, Riverside and Blackwater mines.
Usage of port capacities and railway haulage in the region has also been significantly reduced due to the weather conditions.