SYDNEY – Damage to rail lines in cyclone-hit northeast Australia is set to disrupt exports of the steel-making material from the world’s largest coking coal region, underpinning prices and raising the prospect of major producers declaring force majeure.
The extent of the damage, which will hit coal mines operated by BHP Billiton Ltd and Glencore PLC, was revealed in the wake of deadly Cyclone Debbie, which struck last week and left a disaster zone stretching 1,000 km (600 miles). Four people have died in floods in Queensland and New South Wales states, with another three missing.
Coal hauler Aurizon Holdings said on Monday it would take up to five weeks to repair parts of its network of rail lines that connects mines to ports in Queensland, with alternative routes being considered for coal transported on the worst-affected Goonyella line. Continue Reading →