Widespread and unseasonal rainfall across Australia's coal-rich Queensland state is adversely affecting coal production and haulage after significant rainfalls continued in November and December, lately joined by severe monsoonal rain.
Rail haulage operator QR National, the largest in Australia by tons hauled, said that the problems regarding haulage are expected to continue at least through December and January due to temporary closures across a number of Queensland coal systems and significant flooding of access roads across the state.
As SteelOrbis previously reported, various coal mines in the region have declared force majeure because of the weather conditions.
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.
"As at December 29, the continuing wet weather and flooding is hampering access to the track and, hence, recovery efforts," QR National said in a statement.
Not possible to assess effect on earnings yet
While pointing out that repair crews are working to resume coal services within the next few days, the haulage services provider also warned that heavy rain and flooding is forecast also for the coming days.
"Until these highly unusual weather impacts subside, it is not possible to make a full assessment on full year published earnings forecast," QR National said.
QR National is also talking to its customers to assess current mining production and available stockpiles given the impact of the flooding on mines in Central Queensland.
Usage of port capacities in the region has also been significantly reduced due to the weather conditions.