Queensland, the largest coal-producing region in the world, is in trouble… big trouble. Torrential rainfall over the last several weeks has caused massive flooding in the region and as a result the majority of Queensland’s coal industry has come to a screeching halt. Mines are closed and the roadways and rail systems that deliver the coal to seaports for shipment are out-of-service.
"We have three quarters of our coal fields unable to operate and unable to supply markets. There's likely to be a significant long term effect from that, not only nationally but internationally," said Queensland’s Premier, Anna Bligh. "Queensland supplies half of the world coking coal needed in steel manufacture so there is a remarkable problem out there."
Australia supplies over 30 countries worldwide with coal, with its biggest markets being
Japan and South Korea, with Taiwan, China, Europe and India also depending largely on Australian coal.
Companies including Rio Tinto, BHP Billiton, Anglo American and Xstrata are not able to meet their contractual delivery obligations and are implementing the last measure “force mujeure” clauses in their contracts, which void contractual obligations in the event of forces beyond their control such as natural disasters.
Analysts are estimating that the natural disaster will result in a 20% increase in the price of coal worldwide.
Research from Central Queensland University reveals that roughly 87% of the workforce in the central Queensland region is employed either directly or indirectly by the coal industry.
The Queensland Resources Council has announced that the de-watering of the mines and restoration of roads and railways is a priority at this conjecture, and there has been over $4 million in corporate donations to the Premier’s flood relief appeal.
"The mining companies and the mining communities are playing their role in trying to help the recovery effort... but they will have a long slow climb back into production," adds Premier Bligh.
Sources: Queensland Resources Council, Australian Coal Association
"We have three quarters of our coal fields unable to operate and unable to supply markets. There's likely to be a significant long term effect from that, not only nationally but internationally," said Queensland’s Premier, Anna Bligh. "Queensland supplies half of the world coking coal needed in steel manufacture so there is a remarkable problem out there."
Australia supplies over 30 countries worldwide with coal, with its biggest markets being
Japan and South Korea, with Taiwan, China, Europe and India also depending largely on Australian coal.
Companies including Rio Tinto, BHP Billiton, Anglo American and Xstrata are not able to meet their contractual delivery obligations and are implementing the last measure “force mujeure” clauses in their contracts, which void contractual obligations in the event of forces beyond their control such as natural disasters.
Analysts are estimating that the natural disaster will result in a 20% increase in the price of coal worldwide.
Research from Central Queensland University reveals that roughly 87% of the workforce in the central Queensland region is employed either directly or indirectly by the coal industry.
The Queensland Resources Council has announced that the de-watering of the mines and restoration of roads and railways is a priority at this conjecture, and there has been over $4 million in corporate donations to the Premier’s flood relief appeal.
"The mining companies and the mining communities are playing their role in trying to help the recovery effort... but they will have a long slow climb back into production," adds Premier Bligh.
Sources: Queensland Resources Council, Australian Coal Association
