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UPDATE 1-Aurizon warns Australian coal rail lines could be out for weeks after cyclone

Published 03/04/2017, 10:40 am
Updated 03/04/2017, 10:50 am
© Reuters.  UPDATE 1-Aurizon warns Australian coal rail lines could be out for weeks after cyclone
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(Adds Stanmore Coal statement, more details)

SYDNEY, April 3 (Reuters) - Australian coal haulage group Aurizon Holdings Ltd AZJ.AX said on Monday some Queensland rail lines used by miners including BHP Billiton Ltd BHP.AX BLT.L could be closed for repairs for up to five weeks in the wake of Cyclone Debbie.

Queensland is the world's largest producer of coking coal, used in steelmaking, and the rail outages mean the miners will be unable to get the coal to port for shipping.

Aurizon said its Blackwater rail line could open by the end of this week and the Newlands line within two to three weeks, but its Goonyella line could be closed for up to five weeks. Alternative routes for Goonyella coal were currently being studied, the company said.

BHP and Glencore PLC GLEN.L representatives could not immediately comment on the impact the rail outages would have on shipments.

Stanmore Coal Ltd SMR.AX on Monday said its Isaac Plains coal mine had restarted operations, but warned that delays due to the lack of rail access and potentially extended shipping queues might affect its sales during April and May.

Aurizon in February said it expected to haul 200 to 212 million tonnes of coal in the financial year ended June 30.

The company said on Monday that the temporary closures of the rail lines would have a negative impact on volumes and earnings in its haulage business but did not provide further details.

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