INTERNATIONAL COAL NEWS

Floods hit BMA bottom line

BHP Mitsubishi Alliance will lose 6.5 to 7.5 million tonnes in coal production in the 2008 financ...

Angie Tomlinson

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The floods that devastated Emerald from January 18 to 20 and that hit Mackay from February 9 to 14 have heavily impacted the mining giant.

BMA mines will lose 6.5–7.5Mt and BHP Billiton Mitsui (BMC) owned mines will lose 0.5–1Mt.

BHP Billiton's share of production impact is between 3.7Mt and 4.6Mt.

BHP Billiton said it was currently assessing potential claims under its insurance cover for property damage and business interruption losses.

BMA chief executive John Smith said an accurate assessment of lost production would be made once operations were brought back to full capacity.

“Our focus remains on ensuring the safety of all employees and contractors at our operations and on swift recovery of operations, including dewatering of pits. We are working with the EPA to meet their conditions and minimise downstream impacts," he said.

BMA owned mines in the Bowen Basin include Peak Downs, Goonyella Riverside, Broadmeadow, Saraji, Norwich Park, Blackwater and Gregory Crinum.

BMC mines include South Walker Creek and Poitrel.

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