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Saturday, 08 January 11
COAL PRICE WILL RISE IN SHORT-TERM DUE TO AUSTRALIA FLOODS - ALBUQUERQUE EXPRESS


Albuquerque Express reported that, Queensland’s mining minister, Stephen Robertson, has warned that the Australian state’s coal mines will take several months to get fully operational again following the worst floods in 50 years.

With an area just under half the size of the Mediterranean Sea submerged, the extent of the floods is staggering and over 40 mine operators have been effected, brining the state’s coal industry to a virtual standstill.

Queensland exports mainly coking coal used in the manufacturing of steel, but also produces thermal coal for power stations. Industry observers are now worried the price of coal may climb, pushing up the price of associated metals and services such as steel and electricity.

However, Robertson tried to play down these fears Friday, telling the BBC that although spot prices would likely jump, the long term stability of the coal price was sound.

Sites operated by Rio Tinto, Xstrata and Vale are among those effected and the closure of such mines will likely have global consequences as Queensland accounts for 8% of all global thermal coal exports.
Source: Albuquerque Express



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