Natural catastrophes

26.1, flooding

Australia: BHP Billiton and other coal miners in Australia’s Queensland state stood to lose at least 10 million tonnes of coking coal after heavy rain caused severe flooding in Central Queensland, driving up prices, according to sector analysts at Merrill Lynch. Two coal producers declared force majeure (suspension of contractual production due to factors outside of their control). Other mining companies affected by flooding in the region were Rio Tinto Coal, Hail Creek and Blair Athol. Flooding also cut main roads, preventing workers from accessing mining sites. The Australian weather bureau expected the water level of the nearby Fitzroy River to reach 7.8 metres.