Aussie coal industry suffers overflow

SYDNEY – Australia’s coal industry it is suffering as booming export demand, especially in Asia, runs up against production and shipping constraints, second tier producer Macarthur Coal said yesterday.

The Queensland-based company, which mainly mines pulverised injection coal products for use in steel making, said in its September quarter report that the constraints are limiting its ability to operate at full capacity. It said infrastructure constraints are affecting shipment of coal from Queensland’s Bowen Basin which is Australia’s largest coal producing region.Macarthur said proposed shipments exceed available rail and port capacity and as a consequence, significant vessel queuing occurred throughout August and September, resulting in extra charges.”Restrictions are expected to continue; however, management is focused on minimising the impact on customers and (extra costs),” the company said.Despite these problems, production at its main mine, Coppabella, totalled 1,21 million tonnes tonnes in the three months to September, exceeding the previous record by 28 900 tonnes and putting the mine in line to reach an annual target of 4,2 million tonnes.Shipments from the company’s other current producing mine, Moorvale, totalled 510 200 tonnes and are in line to meet an annual target of 2,0 million tonnes.Macarthur said it also facing another constraint because of the strong market – a shortage of explosives for the removal of overburden.It said the availability of explosives has become restricted as a result of increased mining activity in the Bowen Basin.Australian-listed Orica is the major supplier of explosives to the domestic mining industry and the rest of the world.- Nampa-AFPIt said infrastructure constraints are affecting shipment of coal from Queensland’s Bowen Basin which is Australia’s largest coal producing region.Macarthur said proposed shipments exceed available rail and port capacity and as a consequence, significant vessel queuing occurred throughout August and September, resulting in extra charges.”Restrictions are expected to continue; however, management is focused on minimising the impact on customers and (extra costs),” the company said. Despite these problems, production at its main mine, Coppabella, totalled 1,21 million tonnes tonnes in the three months to September, exceeding the previous record by 28 900 tonnes and putting the mine in line to reach an annual target of 4,2 million tonnes.Shipments from the company’s other current producing mine, Moorvale, totalled 510 200 tonnes and are in line to meet an annual target of 2,0 million tonnes.Macarthur said it also facing another constraint because of the strong market – a shortage of explosives for the removal of overburden.It said the availability of explosives has become restricted as a result of increased mining activity in the Bowen Basin.Australian-listed Orica is the major supplier of explosives to the domestic mining industry and the rest of the world.- Nampa-AFP