Coking coal train derails off Aurizon rail network in QLD

A train derailment on Aurizon’s rail network in Queensland’s Bowen Basin has temporarily affected Glencore and BHP’s coking coal supplies.

The incident occurred on Sunday, when a Pacific National train transporting the coal derailed, with damage sustained to more than 22km of the Northern train line, the Australian Financial Review reports.

The line is set to be disrupted for the rest of the week, delaying coal shipments sent to Abbot Point.

A Glencore spokesperson acknowledged the short term delays the derailment will create for shipments from the Newlands mine, adding, “However, these short-term delays will not impact our ability to supply our customers’ requirements.”

Although BHP’s coal is transported on a different train line to Hay Point, the derailment is still expected to affect wider coal prices.

This comes on the back of the surge in coking coal prices, reaching $US209 a tonne on Thursday. This is up more than 100 per cent since January this year, due to high steel demand and China’s new restrictions for coal miners to operate only 276 days a year.

Aurizon has commenced reconstruction and expects the line to be up and running by September 19.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.