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Qld floods cost $2.3B in lost coal sales

AROUND 85% of Queensland's coal mines are operating below full capacity and the industry has lost...

Lou Caruana
Qld floods cost $2.3B in lost coal sales

Reporting to the state government’s economic recovery coordination taskforce, QRC chief executive Michael Roche said many of the state’s 57 producing coal mines were working around the clock to remove floodwater from minesites and secure access to rail transport.

“QRC estimates that about 15 per cent of the state’s coal mines are in full production, with 60 per cent operating under restrictions and a further 25 per cent yet to resume normal operations,” he said.

“At full production, the coal industry is worth $8.5 million a day to Queensland taxpayers through royalties paid to the state government.

“It’s essential that the industry is given every opportunity to get back on its feet to restore that flow of much-needed funds to the state government after such a horrendous start to the wet season.

“Until December 2010, the coal industry was on target to deliver the production volumes underpinning Queensland Treasury’s forecast of $2.8 billion in royalties to Queensland taxpayers this financial year.”

Roche said the government and coal rail network owner QR National were supporting the industry’s recovery.

“QR National has restored the Moura line to Gladstone and we are hoping for similar good news for the Blackwater system later this week,” he said.

“However, it is also clear that the restoration of rail services to mines west of Brisbane and in the Surat Basin are going to take much longer.”

To take full advantage of the prospective return of rail services, coal mines and some coal seam gas sites needed further dispensation from the Department of Environment and Resource Management to pump floodwater into nearby creeks which fed strongly flowing watercourses.

“QRC has made submissions to DERM last week and is hoping for a response early this week,” Roche said.

“DERM have been for the most part very responsive to the resources sector’s needs but the QRC has put to them that further leeway is required to deal with this emergency.

“Just as there is an urgent need to pump water out of buildings in the Brisbane CBD so they can get back to business, the state’s mines are facing the same urgent need.”

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