A majority of coal mines in Australia's coal-rich Queensland state are out of operation due to floods, while spot coking coal prices continue to rise amid limited supplies.
Queensland Premier Anna Bligh told Australian broadcaster ABC, "We have three-quarters of all of our coal fields unable to operate and unable to supply markets," adding that it will be hard to really fully evaluate the general economic and social impact of the floods.
Meanwhile, coking coal spot prices are at around $250/mt FOB, according to analysts, more than 10 percent over the benchmark price of $225/mt FOB as agreed between Australian mining giant BHP Billiton and Japanese steelmakers for Q1 2011.
Local reports say that stocks at Queensland ports remain low as ships wait to load coal.
"Queensland's huge coal industry will take several months to return to full production after the floods," local newspaper The Australian said.