By Angela Macdonald-Smith
Feb. 13 (Bloomberg) -- Xstrata Plc, the world's biggest exporter of power-station coal, warned customers it may miss deliveries from two mines in Queensland, adding to delays to shipments from northeastern Australia caused by heavy rain.
Force majeure was declared on shipments from the Newlands and Collinsville mines today, said James Rickards, a spokesman for Zug, Switzerland-based Xstrata. BHP Billiton Ltd. said separately rainfall further slowed operations at mines owned by BHP Billiton Mitsubishi Alliance in Queensland.
Xstrata brings to at least five the number of Queensland coal suppliers that have declared force majeure on deliveries since monsoonal rains affected the Bowen Basin in January. The disruptions have contributed to a surge in spot prices for coking coal used in steelmaking to as much as $270 a metric ton, the Tex Report said Feb. 5, almost triple the contract price.
``The rain is the main issue at this time,'' Rickards said by telephone from Queensland. A train derailment near Collinsville yesterday also slowed shipments to the Abbot Point export port, he said. The extent of the delays will depend on the weather, Rickards said.
At BHP Billiton Mitsubishi, the world's biggest exporter of coal used in steelmaking, the rains are delaying the recovery of production from disruptions last month, Samantha Evans, a spokeswoman for Melbourne-based BHP Billiton, said today in an e-mail. The alliance declared force majeure on deliveries from its mines in Queensland last month.
Coal Stockpiles
Coal is being transported by rail from stockpiles at BHP Billiton Mitsubishi mines to the Hay Point, Gladstone and Dalrymple Bay export terminals, Evans said.
Macarthur Coal Ltd., the Australian supplier of more than a third of world exports of pulverized coal, said the latest rains are slowing the resumption of full-scale production after disruptions last month. Brisbane-based Macarthur also declared force majeure in January and that hasn't yet been lifted, spokeswoman Annette Fraser said today from Brisbane.
Ensham Resources Pty, controlled by Idemitsu Kosan Co., and Wesfarmers Ltd. also last month warned customers they may miss contracted deliveries from coal mines in Queensland.
Peabody Energy Corp.'s Australian unit can't comment on any disruptions at its Queensland mines, said Louise Gordon, a spokeswoman in Brisbane. Nathan Scholz, a spokesman at Rio Tinto Group's coal unit in Queensland, couldn't immediately comment. Teresa Henry, a spokeswoman at Anglo American Plc's coal unit in Queensland, couldn't be reached for comment.
To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net
Last Updated: February 13, 2008 00:16 EST
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