Floods take billion dollar toll on coal

Flooding in Queensland has cost the coal industry $2 billion in lost production.

Flooding in Queensland has cost the coal industry $2 billion in lost production.

Ratings agency Moody’s say the State has potentially lost between eight and 15 tonnes of production as open pits fill with water and rail lines are cut off.

Analysts expect that it could take up to three months for the coal industry to get back on track.

New Hope yesterday announced that it was forced to cease operations at its New Acland coal mine due to flash flooding.

Cockatoo Coal also saw extensive flooding at its Barabala open pit.

Flood waters inundate QLD mine [Video]

The rains have forced buyers to look elsewhere for replacement coal, with many eyes turning to the Hunter Valley to fill the market shortfall.

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