Damage and flooding from violent storms in Australia's east coast coal district has shut down the world's largest coal port, prompting analysts to warn Tuesday that spot prices of the resource could rise.
BHP Billiton Ltd., the world's largest coal miner, said it was invoking a natural disaster clause that frees it of liability over shipments from one major mine in the Hunter Valley region, which was battered last weekend by storms that killed nine.
"Repairs and checks for structural damage could add around US$5 a ton to the coal price if disruptions last for more than two weeks," ANZ analyst Andrew Harrington told Dow Jones Newswires.
"Repairs and checks for structural damage could add around US$5 a ton to the coal price if disruptions last for more than two weeks," ANZ analyst Andrew Harrington told Dow Jones Newswires.
Rival mining giants Rio Tinto and Xstrata PLC may follow suit, analysts said, after the organization that handles port and rail operations for coal exports from the region said it had stopped shipments because of storm damage to the network.
The organization, the Hunter Valley Coal Chain Logistics Team, said coal haulage was not likely to restart until Friday and estimated that two million tons of throughput may be lost.
Source : biz.yahoo.com
No comments:
Post a Comment