Cline Mining Corporation T.CMK

Australia cuts coal output forecast

[waterboy2]

Australia cuts coal output forecasts but lifts iron ore higher

Tuesday, 20 Sep, 2011

Reuters reported that Australia has cut its forecast for coking coal production in fiscal 2012 as recovery from natural disasters

takes longer than expected but lifted its projection for iron ore production a touch.

The Australian Bureau of Resources and Energy Economics, in a quarterly report, lowered its forecast for the production of

metallurgical coal by 6% to 161 million tonnes from its June forecast and cut its export forecast by 5% to 156 million tonnes.

But output of iron ore is seen at 470 million tonnes 0.7% above earlier forecasts.

The cut in coking coal forecasts is unlikely to cause major market ripples after the central bank repeatedly warned the sector

was recovering from early-2011 floods and cyclones slower than previously estimated. Recovery was seen by the second half

of 2011 but the central bank now estimates full production would not resume until early 2012, also restraining Australia's

growth.

(Sourced from Reuters)


In related news it is also reported that there is a 60 - 70 % chance of above average rainfall in Queensland between October - december 2011.