Heavy rains and large-scale floods in northeastern Australia, caused by the aftermath of tropical cyclone "Koji", have led to serious disruptions in Queensland's mining sector. Due to flooded mines and critical damage to railway lines, key coal producers were forced to officially declare their inability to fulfill contractual obligations. This was reported by Bloomberg, writes UNN.
Details
As of January 16, several major market players, including Stanmore Resources Ltd., M Resources, Pembroke Resources, and Fitzroy Coal Sales, have declared a state of "force majeure" regarding part of their deliveries. This means that companies are exempt from liability for delays due to circumstances beyond their control.
Although giants such as Glencore and Anglo American have not yet taken similar steps, they have already confirmed significant logistical difficulties. In particular, Glencore faced restrictions on the supply of copper concentrate to its smelters due to the closure of the Mount Isa railway line.
Impact on prices and logistical collapse
The natural disaster immediately resonated in world markets. The price of Australian premium metallurgical coal has risen from $218.75 to $232.95 per ton over the past week.
The main problem was not only water in the mine cuts, but also the so-called "saturation of the roadbed" under the railway, which makes the tracks unsuitable for heavy freight trains. Huge queues have formed in seaports such as Dalrymple Bay (DBCT): more than 40 vessels are waiting to be loaded, as coal delivery from the interior of the continent has practically stopped.
Alarming weather forecasts
The situation may worsen as early as the beginning of next week. The Australian Bureau of Meteorology (BoM) has warned of the formation of a new weather system in the Coral Sea, which threatens the region with repeated heavy rains and another wave of floods. This jeopardizes the efforts to restore transport links that are already underway in the affected areas.
In parallel with the floods in the north, bad weather is also raging in the south of the country: in Victoria, sudden floods on the Great Ocean Road led to blocked roads and damage to private property.