Coal news and updates

Coal shipping ports in northeastern Australia remained closed on Friday after a powerful cyclone slammed into the coast in the early hours, packing heavy winds and generating giant tides, port officials said.

 

At around 2200 GMT, Cyclone Dylan was downgraded to a tropical low and was estimated to be over land 35 km (21 miles) south southeast of the Bowen coal mining region and moving south southwest at 26 km (16 miles) per hour, according to the Australian Bureau of Meteorology.

 

The storm was moving inland and weakening, the bureau said.

 

Coal traders said a short interruption to shipping would have little impact on markets, given plentiful supplies in most markets and the slowdown in business activity in Asia because of the Lunar New Year holiday.

 

There were no immediate reports of damage to any port facilities or collieries.

 

The Hay Point terminal, used to ship coal mined jointly by BHP Billiton and Mitsubishi Corp, was shuttered earlier this week, along with the nearby Mackay port.

 

BHP in an emailed statement said it was monitoring the storm and would resume ship berthing at Hay Point when it becomes safe to do so.

 

"Any material impact on production is reported in BHP Billiton's quarterly operational review," scheduled for release on April 16, BHP said. Hay Point terminal's capacity for coal exports is being upgraded to 55 million tonnes per year.

 

Loading was suspended at the Glencore Xstrata - operated Abbot Point coal terminal near the town of Bowen.

 

Movement was also suspended at the Dalrymple Bay Terminal, the world's third-largest bulk-export coal terminal.

 

Train operations at the port have also been placed on hold and will not resume before Monday, said Greg Smith, general manager of operations for DCBT Management, which operates the port under a lease from the Queensland state government.

 

"The terminal has completed cargoes in the stockyard and will be ready to recommence loading operations when it is safe to do so and after ships have returned to the port, which at this stage will hopefully be on Sunday," Smith said.

 

About 20 ships waiting to load coal exports at the Dalrymple Bay terminal moved further out to sea this week because of rough seas.

 

The Dalrymple Bay terminal moved more than 65 million tonnes of coal in 2013, industry data showed.

 

The Port of Abbot Point handled 21 million tonnes of coal, which is shipped from collieries in the Bowen Basin, the world's single largest source of metallurgical coal.

 

Cyclone Yasi led to the closure of coal terminals in Abbot Point, Hay Point and Dalrymple Bay for almost a week in February 2011, leading to a surge in coal prices.

 

Hard coking contract prices at the time increased to $330 a tonne, from $225, while thermal coal spot prices cleared $120 tonne or the first time in more than a year.

 

 

Source: Reuters