MARKETS

Qld weather fallout continues

MORE thunderstorms are tipped to hit Queensland’s coalfields this week while mines linked to the closed Blackwater rail line are already facing extended periods of force majeure. <i>ILN</i> talks to coal companies and port operators.

Blair Price
Qld weather fallout continues

Mines already isolated by the closure of the Blackwater system include Kestrel, Rolleston, Gregory, Curragh, Minerva and Cook as well as Jellinbah, East, Blackwater and Ensham.

The three other major rail systems are operating, with the Moura line reopened last week.

But a North Queensland Bulk Ports Corporation spokesperson told ILN that most of the coal going through this rail system was for domestic customers.

She said Gladstone’s port might start shipping coal later this week, after receiving only two trains with export coal from the Moura line last week.

Contrary to some media reports, the spokesperson said the Port of Gladstone was never shut down by the wet weather, including its two coal terminals.

But the port only receives coal from the Moura and Blackwater rail lines, so the issue is the lack of incoming deliveries.

The spokesperson said there was probably around 400,000 tonnes of stockpiled coal left at the port while the stockpile capacity was about 4.85 million tonnes.

With 16 ships in the queue by the end of last week, coal companies were expected to redirect some of these vessels north to either the Dalrymple Bay or Abbot Point terminals.

The Bureau of Meteorology has forecast the Rockhampton river levels to fall to about 8.5 metres by the end of this week, while the NQBP spokesperson did not expect the Blackwater rail system in the area to reopen until the floodwaters receded below 8m.

In the meantime, Gladstone’s port is “ramping forward its maintenance schedule”

At the Dalrymple Bay Coal Terminal there is around 600,000t of stockpiled coal, which could load seven ships on the basis they can hold around 80,000t each.

About 23 trains arrived on Friday while there were about 10 on Saturday and another 10 on Sunday.

Typically, the port receives about 25 trains per day and the stockpiled coal generally totals around 800,000t.

A DBCT spokesperson told ILN the port was running at about 70% of its capacity before the floods hit, and there were about 42 ships in the queue, with some of the vessels normally going through Gladstone.

The queue at port is expected to remain fairly steady as customers become aware of the situation and ship arrivals taper off.

The Integrated Logistics Centre manages the supply chain for DBCT, which caters to producers BHP Billiton, Peabody Energy, Anglo American Metallurgical Coal, Rio Tinto, Xstrata, Vale and Macarthur Coal.

ILC chief executive Ross Dunning said many mines had force majeure in place, but was unable to provide too many specifics in light of confidentiality agreements.

He said the open cut mines closer to the coast were clearly having flooding difficulties.

“The longwall mines, of course, haven’t had a great deal of trouble other than perhaps that some of them have had their haul roads affected,” Dunning told ILN.

He knew of at least one underground coal operation where the issue was not mining but repairing the haul road to reach the rail load-out facility.

While the rail linking the northern Bowen Basin mines to DBCT is operating, Dunning said there were extensive speed restrictions.

He estimated that rail capacity to the port was operating at about 50 million tonnes per annum compared to the 75-80Mtpa normally expected.

“At the moment it’s supply that is the problem and while parts of the network suffered some damage, it’s repairable and adequate at the moment for the supply that is available.”

For DBCT-linked mines, Dunning said that with a bit of dry weather and some pumping, he would not be surprised if they got back into action quickly.

A Queensland Rail National spokesperson told ILN the situation had not changed substantively since five days ago.

“We are awaiting floodwaters to recede on Blackwater, other systems continue to operate,” he said.

“We are working with all parties on supply chain, including mines and ports, to maximise current railings.”

BHP is committed to only covering weather impacts in its next quarterly production report.

“BHP Billiton confirms that force majeure has been declared for specific Bowen Basin products as a result of heavy and persistent rain,” a spokesperson said.

Rio on the other hand confirmed its four Queensland mines remained under force majeure.

Xstrata’s Rolleston open cut mine has shut down production but its Collinsville surface mine was able to recover from wet weather interruptions.

The underground Oaky Creek operations and Newlands are continuing to produce coal and deliver it to port in most instances, an Xstrata spokesperson said last week.

“Otherwise, we are much better positioned than others in the area from what we can see,” he said.

Anglo remains occupied with dewatering its flooded coal pits, while sheltering more than 360 people from Theodore – the only town to be completely evacuated – at its Dawson mine camp, motels and other accommodation facilities at Moura.

“Most of the people evacuated from Theodore left with just the clothes they were wearing so we are providing them with shelter and basic necessities, such as food, clothes and toiletries,” Dawson mine acting general manager Andy McLeod said on December 30, when the company had accommodated 328 residents from the town.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalogue of 2022 Initial Resource Estimates and recent discovery successes.