Weather problems close coal mine
BHP Coal terminal damaged by cyclone, stays shut
BHP Billiton, the world’s biggest mining company, said its Hay PointCoal terminal in Australia was damaged at the weekend and remains shutafter being hit by a cyclone that also closed mines.
“Assessmentswill be undertaken to determine the extent of repairs required andlikely timeframes to recommence operations,” BHP said today in ane-mailed statement. Some northern coal mines suspended operations, itsaid, without identifying them.
Cyclone Ului has weakened to adepression after hitting northern Queensland with winds gusting to 200km/hr yesterday, damaging houses and sugar cane plantations andtriggering power blackouts. Hay Point, 38 km south of Mackay, has twoberths and a capacity to export 44Mt of steel-making coal a year.
BHPand partner Mitsubishi Corp own and operate seven metallurgical coalmines in the Bowen Basin with the capacity to produce 58Mt of coal ayear, according to the Melbourne-based company’s Web site.
HayPoint terminal closed operations on March 11 owing to bad weatherconditions and train operations to the terminal ceased March 18, BHPsaid.
“We are monitoring conditions at mine sites and will recommence operations when it’s safe to do so,” BHP said.
About3Mt of coal output in Queensland’s Bowen Basin was lost this quarterbecause of heavy rains, Mark Pervan, a senior commodity strategist atAustralia and New Zealand Banking Group Ltd in Melbourne, said in aMarch 9 note, citing reports that he didn’t identify.