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UPDATE 1-Yancoal resumes coal mining after Australia's heavy rains

Published 25/03/2021, 07:07 pm
© Reuters.
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(Adds detail of coal mine disruptions)

MELBOURNE, March 25 (Reuters) - Yancoal YAL.AX has resumed operations at two mines in Australia's coal-producing Hunter Valley region, the miner said on Thursday, after heavy rains and flooding in New South Wales state disrupted activities earlier in the week.

Relentless rains for five days - the worst downpour in more than half a century - burst river banks, inundating homes, roads, bridges and farms and cutting off entire towns in Australia's east. hit by devastating floodwaters began returning to their homes on Thursday as skies cleared and authorities accelerated clean-up efforts.

"Operations at MTW and Stratford have resumed," a Yancoal spokesman said in an emailed comment to Reuters, referring to Mount Thorley Warkworth.

Australian Rail Track Corp (ARTC) partially reopened Hunter Valley coal rail lines on Wednesday to Newcastle, the world's biggest coal export port, but not before supply concerns lifted thermal coal prices to two-year highs near $100 a tonne.

The Hunter Valley rail network also serves mines run by BHP Group BHP.AX , Glencore Plc GLEN.L , New Hope Corp NHC.AX , Whitehaven Coal WHC.AX among others.

Peer Whitehaven downgraded its production target, partly due to weather-related disruption this week while Glencore GLEN.L has also said it has reduced output at some sites as a safety precaution.

New Hope said it was experiencing only a minor disruption and was still able to get coal to port.

The Port of Newcastle, which last year shipped 158 million tonnes of coal, slowed ship movements this week but said on Wednesday it was continuing to operate.

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