UPDATE 1-Macarthur coal resumes Australia coal shipments

Macarthur resumes coal shipments, reaffirms sales forecast * Coking coal market still tight with BHP’s force majeure in place (Adds details, background)

PERTH, March 29 (Reuters) – Macarthur Coal Ltd (MCC.AX), the world’s largest producer of pulverized injection coal (PCI) for steelmaking, has resumed its coal shipments following the resumption of rail and port services at Dalrymple Bay Coal Terminal, it said on Monday.

Macarthur, which declared force majeure on shipments on March 19, said its full year sales forecast range of 4.8-5 million tonnes remained unchanged, despite the recent weather-related disruptions.

But the resumption of Macarthur’s PCI coal shipments would only slightly alleviate the supply tightness in the coking coal market, with top exporter BHP Billiton Ltd (BHP.AX)(BLT.L) having declared force majeure on its shipments last week and said its key coal port would take between three to six weeks to resume full operations. [ID:nSGE62N01A]

The Dalrymple Bay Coal Terminal, which has an annual capacity of 85 million tonnes per year, was shut for about four days last week due to rough weather conditions caused by a cyclone.

The Blackwater and Goonyella rail lines, which transport coal to and from the mines owned by Macarthur, BHP Mitsubishi Alliance and Ensham Resources Pty Ltd, were also halted.

Hard coking coal prices have risen strongly in the past two weeks on the back of the supply disruptions.

Prices of premium quality coal have been sold at $240 a tonne, while offer prices for the steel feed are hovering between $240-$250 a tonne, up from $220-$225 a tonne about two weeks ago, traders said.

Force majeure is a contractual clause that allows companies to miss deliveries because of circumstances beyond their control. (Reporting by Fayen Wong; Editing by Ed Davies)

Macarthur coal resumes Australia coal shipments

PERTH, March 29 (Reuters) – Macarthur Coal Ltd (MCC.AX), the world’s largest producer of pulverized injection coal for steelmaking, has lifted its force majeure declarations following the resumption of rail and port services at Dalrymple Bay Coal Terminal, it said on Monday.

Macarthur said its full year sales forecast range of 4.8-5 million tonnes remains unchanged, despite the recent weather-related disruptions.

The firm declared force majeure on coal shipments on March 19. (Reporting by Fayen Wong; editing by Balazs Koranyi)

Ports still closed in wake of cyclone Ului

Coal terminals in north Queensland remain closed after ex-Tropical Cyclone Ului dumped more than 350 millimetres of rain on the region.

North Queensland Bulk Ports staff are inspecting the Dalrymple Bay terminal, south of Mackay, and the Abbot Point terminal near Bowen, south of Townsville, but no major damage has been reported.

Mining company BMA says operations at its South Walker Creek mine near Nebo in the state’s Central Highlands region will resume tomorrow.

The chief executive of North Queensland Bulk Ports, Brad Fish, says they do not know yet when the ports will reopen.

“The harbour masters will make the decisions on reopening the ports and we’d expect that to happen over the next day or so,” he said.

“It’s not critical though because the shipping has left the port anyway at the present time, so it’ll be a day or two before shipping is back in port.”

Rain still hampering coal supply chain

The company that oversees the coal supply chain to the Dalrymple Bay terminal in central Queensland says wet weather continues to affect operations.

The speed limit for trains across the Goonyella supply chain network has been dropped by 20 kilometres per hour to 60.

Phil Bourne from the Integrated Logistics Company says the wet weather and speed restrictions mean two trains per day have to be taken out of the system.

“That would be roughly 18,000 to 20,000 tonnes a day,” he said.

“It does sound like a big figure but … as we draw towards the end of the wet season now, we’ll start to see everything pick up again and we’ll reduce those loses very quickly.”

But Mr Bourne says the improvements are not occurring as quickly as some stakeholders would like.

“The expectations of us an an organisation and as individuals is extremely high,” he said.

“I think there is a degree of frustration across the coal chain that things don’t happen as quickly as we would have liked, but it’s all starting to make small but measurable benefits to the supply chain.”

Cyclone slowly moving away from Qld coast

The weather bureau says a category four cyclone in the Coral Sea poses no immediate threat to the Queensland coast, but could move closer over the weekend.

Tropical Cyclone Ului is more than 1,300 kilometres north-east of Mackay in north Queensland and is moving west-south-west at about four kilometres an hour.

The bureau says there will be increased winds along the Queensland coast.

But forecaster Ben Annells says it is going to remain offshore for most of the week.

“It’s going to basically come to a virtual halt – it’s already doing that at the moment and we’re likely to see it adopt a southerly track or movement over the Coral Sea area basically from about tomorrow onwards until later in the week,” he said.

“After that, that’s where the computer models have been having some difficult ascertaining what’s going to happen.

“The main effect I guess in the short to medium-term will still be the maintenance of those strong to gale force winds along the east coast of Queensland, particularly about the tropical coast initially, and continuing with showers.”

Port delays

With strong winds and high seas creating dangerous conditions, operators of two central Queensland coal terminals say it could be some days before loading can recommence.

No coal has been loaded from the Dalrymple Bay terminal, south of Mackay, since Saturday.

A spokesman says the port was due to reopen yesterday but conditions have not improved.

A spokeswoman for BMA, the operator of the Hay Point terminal, says the port will only reopen when it is safe.

Preparations

Meanwhile, Emergency Management Queensland (EMQ) acting regional director Wayne Hepple says now is the time to stock up on emergency supplies.

“Ideally you should have that stuff all squirreled away and all set aside now – maybe some last minute top-ups,” he said.

“Ideally your batteries should have a good little bit of time left on them – just check those last minute things out.

“We’ve got a little bit of time before it could even vaguely been in our area.

“This time of year we very much encourage people to be checking out their house, making sure it’s all prepared, making sure their kits are ready.

“What we do encourage is to make sure that even simple things like making sure your gutters are clear.”

Shark warning

Shark experts are warning about the dangers of bull sharks in Queensland waters following heavy rain.

Fisheries Queensland (FQ) says there has been an increase in bull shark sightings in rivers, creeks and canals along the Queensland coast.

FQ shark control program manager Tony Ham says the sharks are searching for food.

“There’s a multitude of fish moving out with the dirty water and if there is one thing sharks are good at, it’s feeding in dirty water,” he said.

“I guess the risk is increased simply because if they are in those conditions, they are generally there feeding.”