Rio Tinto hit by Australian floods

29th Dec 2010 10:01

Severe flooding in Queensland, Australia has prompted Rio Tinto to declare force majeure on contracts from its coal mines at Hail Creek, Kestrel, Blair Athol and Clermont in Queensland's Bowen Basin. "The severe monsoonal rain, on top of the significant rainfalls in November and December, has had an adverse impact on mining operations, and has cut access roads and rail networks," Rio said. It is still raining in the region with more wet weather forecast. "Rio Tinto Coal Australia is currently unable to provide an estimate of the full impact of this adverse weather or the duration of the force majeure declaration," it added.Other mining companies operating in the region have also had to scale back their operations.Dalrymple Bay Coal Terminal and Gladstone Ports, two of Australia's biggest coal export terminals, and QR National, the leading coal transport company in Australia, have all been badly affected by the torrential rain.