Australian mining giant BHP Billiton has declared force majeure at its coal mines in Bowen Basin, Queensland, Australia as production has been adversely affected by prolonged union strikes and heavy rain, according to media reports.
The force majeure could lead to increases in metallurgical coal prices. The strikes and heavy rains are estimated to result in 2 million mt to 3 million mt of lost production this year. Industrial actions since June 2011 by about 3,500 workers at seven coal mines in Bowen Basin have caused BHP to miss deliveries.
Queensland coal mines produce one million mt of coking coal per week, which is 20 percent of world production.