Australia floods shut 8% of global thermal coal export supply

6th January 2011 By: Reuters

PERTH – Flooding in Australia's Queensland state has resulted in the temporary closure of 8% of the global thermal coal exports supply, ANZ Bank said in a note on Thursday.

The northeastern state produces mostly coking coal used for steelmaking, but also produces some thermal coal used for power generation.

Coal mines with an annual capacity of 57,3-million tons of thermal coal have either declared force majeure or have reduced production due to the rains, ANZ analyst Mark Pervan said.