Illawarra mines deal with flow-on effects of flood BY BEN LANGFORD 07 Jan, 2011 04:00 AM Mixed fortunes are predicted for Illawarra-based coalminers after flooding in Queensland shut down several mines there, sparking predictions of coal price rises. The flooding that has devastated Rockhampton and Emerald has also forced the temporary closure of several coalmines in Queensland, which produces up to 40 per cent of the world's coking coal.
Roads and rail lines have also been cut and the production halt is expected to drive up coal prices - some say by up to a third. Major miners, including BHP Billiton, Rio Tinto, Anglo American, Peabody and Xstrata have declared "force majeure" on coal contracts - meaning forces beyond their control have made delivery impossible. Some miners' share prices have dropped as Queensland production halted. Several of these companies have operations in the Illawarra - BHP Billiton's subsidiary Illawarra Coal operates mines at Appin and Dendrobium, Xstrata has a colliery at Tahmoor, while Peabody owns the Metropolitan Colliery at Helensburgh. Cockatoo Coal, which has temporarily closed its Baralaba mine in Queensland, is looking to begin exploration work on a coal lease underneath Sutton Forest and Exeter in the Southern Highlands. The companies have been reluctant to comment on whether problems in Queensland will place more pressure on Illawarra operations to boost production. But Illawarra miner Gujarat NRE, which does not operate in Queensland, is on track for more growth. Daiwa Capital Markets analyst David Brennan said the coking coal price could reach $US300 a tonne, as happened during the 2008 floods in Queensland. "If it happens it's going to happen now, when buyers are desperate to get coking coal at whatever price they can get it," he said. "They'll be willing to get it at the spot price." He said the benchmark was set by BHP Billiton selling coking coal to Japanese buyers at $225 a tonne, a deal negotiated last year. But miners will now be keen to try to negotiate more short-term prices. This is good news for Gujarat NRE, whose Illawarra operations at Russell Vale and Wongawilli are far from flood damage. Page:12 ------------------------------------ Kunjungi situs http://www.info-saham.com untuk informasi seputar saham. SEMUA POSTING DI MILIS INI TANGGUNG JAWAB PENGIRIM EMAIL DAN BUKAN ADMIN MILIS. SEMUA POSTING DI MILIS INI BUKAN UNTUK MENGAJAK MEMBELI ATAU MENJUAL EFEK. SETIAP KEPUTUSAN INVESTASI MENJADI TANGGUNG JAWAB PIHAK PEMILIK INVESTASI ATAU PEMILIK MODAL. [email protected] untuk berhenti dari milis saham [email protected] untuk bergabung ke milis saham Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/saham/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/saham/join (Yahoo! ID required) <*> To change settings via email: [email protected] [email protected] <*> To unsubscribe from this group, send an email to: [email protected] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
