Australian mining giant Rio Tinto has announced that, as a result of severe monsoonal rain in central and northern Queensland's Bowen Basin, force majeure has been declared on coal sales contracts from mines in which subsidiary Rio Tinto Coal Australia has a majority interest, namely Hail Creek, Kestrel, Blair Athol and Clermont.
Rio Tinto said that the severe monsoonal rain, on top of the significant rainfalls in November and December, has had an adverse impact on mining operations, and has cut access to roads and rail networks.
"As rain is continuing to fall in the region and further rains are forecast, Rio Tinto Coal Australia is currently unable to provide an estimate of the full impact of this adverse weather or the duration of the force majeure declaration," Rio Tinto said.
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.
Other force majeure declarations
According to press sources, 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.
UK-based miner Anglo American's subsidiary Anglo American Metallurgical Coal said that, on top of other mines, production at the company's Dawson mine in particular has been disrupted by rains and flooding. Dawson produces 7 million mt per year of coking, soft coking and thermal coal.