QLD Mining and Energy Bulletin
Issue link: http://ebook.aprs.com.au/i/31843
QUEENSLAND MINING BY ‘WORST FLOODING ON RECORD’ BY JARROD FITCH Q ueensland’s record flooding initially left 85 per cent of its mines partially or non operative. Queensland Resources Council Chief Executive, Michael Roche, told Queensland Mining and Energy Bulletin in April that 75 per cent of the state’s coal mines “have been granted or are seeking approval for Transitional Environmental Programs to allow the closely monitored pumping out of water.” “Monthly production and export volumes published to date are confi rming the QRC’s initial projection of around 30 million tonnes of lost production by the end of the fi nancial year, worth around $5 billion and $400 million in royalties to Queensland taxpayers,” he said. “A timetable for a return to full production remains highly speculative while the wet season could easily extend well into April. It is also clear from our members that a large number of mines will be carrying left-over floodwater into the dry season.” More than $230 million in contributions have been received in donations to the Premier’s flood relief appeal, with large contributions made by Xstrata, Rio Tinto, BMA, Wesfarmers, Mitsubishi, and others. Coal mines worst affected Key coal producers, including BHP Billiton, Rio Tinto, Xstrata, Peabody Coal, Wesfarmers, Macarthur Coal, Anglo American and Cockatoo Coal, declared force majeure, meaning they were able to hold-off on existing contract demands because of circumstances beyond their control. Rio Tinto Coal Rio Australia’s mines in central Queensland had in March lifted the force majeure from sales contracts declared in late December 2010. Mick Davis, CEO of Xstrata, said in a statement following the flooding that damage caused severe conditions for workers and communities. “The devastation of these floods has left many of our employees, their families and the surrounding towns and farming communities either homeless or severely impacted. Our thoughts are with those affected and with the rescue and emergency services engaged in providing support on the ground,” he said. US-owned Peabody Coal, which in 2009 derived 34 per cent of its sales in Australian coal, had in January scaled back its 2010/11 profit forecast and is due to release a more detailed updates later in the year. Wesfarmers Resources Managing Director, Stewart Butel, announced in a statement in mid-January that its Curragh coal mine was set to reopen in February, boosted by negotiations that added 12 per cent to metallurgic coal prices. “As advised on 4 January 2011, Curragh’s metallurgical coal sales volume is now forecast to be in the range of 5.8 to 6.2 million tonnes for the 2011 financial year, subject to no further significant wet weather and satisfactory rail and port operations. This compares to a pre-flood forecast of 6.0 to 6.5 million tonnes,” Butel said. South-East Queensland Severe flooding in January to South-East Queensland, including Brisbane, added additional pressure to rescue teams who were already stretched following the Christmas- New Year floods. Prime Minister Gillard in January committed 1200 Australian defence force personnel and QLD Mining and Energy Bulletin Winter 2011 27 27 military aircraft involving transporting supplies, search-and-rescue, medical evacuations, psychological services and engineering work. “This will be the biggest deployment for a natural disaster since Cyclone Tracy,” Gillard told reporters at Amberley air base, west of Brisbane. “Anything that the state needs from our defence force will be provided as they face this grim and rapidly evolving crisis,” she said. Queensland Premier Anna Bligh was moved to tears in a Brisbane news conference in January as her mother’s Brisbane home was severely damaged in the fl oods. “As we weep for what we have lost, and as we grieve for family and friends and we confront the challenge that is before us, I want us to remember who we are,” she said. As fl oodwaters in South-East and Central Queensland receded in January, rescue workers began clean-up work to restore fl ood- affected communities. QLD FLOODS