Cyclone impact threatens to close Australian coal ports
Australian coal mines located within the watch zone for Cyclone Kirrily are making preparations for its landfall in Queensland state.
Gales with damaging wind gusts of 120km/hr are likely to affect the Whitsunday Islands on 24 January and extend to mainland communities between the towns of Ayr and Sarina during the morning of 25 January, Australia's Bureau of Meteorology (BoM) said. The storm is forecast to cross the northern Queensland coastline on the night of 24 January between the towns of Cardwell and Bowen as a category 2 cyclone.
The northern Bowen basin coal terminals of Abbot Point, Dalrymple Bay (DBCT) and Hay Point are most likely to be affected by the storm's predicted path. Deliveries to Hay Point and DBCT were cut for nearly a month following the April 2017 impact of Cyclone Debbie.
The regional harbourmaster at the city of Mackay, which covers the Hay Point and DBCT terminals, has closed pilotage areas, waterways, marinas, buoy mooring grids and anchorages, with vessels not to leave cyclones moorings until an official all clear is given. The harbourmaster for Townsville, Bowen and Abbot Point is also ordering ships to not leave their moorings.
The port of Townsville ships mainly non-ferrous concentrates from Queensland's northwest minerals province, as well as live cattle and is also a key regional container port.
Heavy rainfall, which may lead to flash flooding, is forecast for coastal areas from 25 January before spreading to inland areas later during the day and continuing during 26 January.
A BoM tracking map on 24 January suggests the storm is likely to track west once it makes landfall, which would reduce the likelihood of flooding in southern Bowen basin mines and potentially as far south as New South Wales state, also a major coal exporter.
Exports of coking coal were already disrupted because of problems on the Goonyella Coal Rail System — connecting Hay Point, DBCT and Abbot Point — following a temporary suspension last week. The delays have prompted expectations of tightening supplies.
Related news posts
India’s Hindustan Zinc seeks imported thermal coal
India’s Hindustan Zinc seeks imported thermal coal
Singapore, 4 July (Argus) — Indian private-sector metals and mining company Hindustan Zinc is seeking up to 300,000t of thermal coal imports through a tender that closes on 8 July. The company wants imported coal of any origin in cargo sizes of 55,000t, 75,000t, 100,000t, 120,000t or 150,000t of unspecified calorific value (CV) to be delivered by August or the first half of September. It is seeking offers for coal preferably priced on a dap basis, but is open to receiving offers on fob, cfr or cif basis to Kandla, Dahej or Mundra ports on India's west coast. It would take at least two cargoes of imported coal. Hindustan Zinc wants coal with a sulphur content of less than 3pc on an air-dried basis. Total moisture levels should be 8-21pc. Typical ash content for high-ash coal should be up to 24pc with rejection level at 27pc, while the typical ash content for low-ash coal is at 12pc, with rejection limit at 13pc. Volatile matter should range 20-42pc. Prospective bidders should submit their applications by 8 July, with validity until 11 July. Interested bidders have to register on the auction portal — https://hzl.supplier.ariba.com — to participate in the tender. Stock and sale Hindustan Zinc is also seeking up to 20,000t of imported thermal coal with a typical CV of more than NAR 5,800 kcal/kg coal, with a minimum of NAR 5,500 kcal/kg, from stock and sale traders through the same tender. The company would prefer the stock-and-sale coal to be of South African origin that can be supplied at the earliest. The company would try to lift the cargo from a port on west coast of India within 45 days of award of the tender. The stock-and-sale coal should have high fixed carbon and low volatile matter content. The typical fixed carbon level should be at 50pc with rejection limit at 45pc, while volatile matter should be at 23pc with rejection limit set at 26pc. Typical ash level should be at 18pc, with the rejection limit at 22pc. Total moisture should be between 5-12pc. Hindustan Zinc is seeking the imported and stock-and-sale coal cargoes for its captive power plants, which have a combined capacity of 505.5MW. By Nadhir Mokhtar Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Upper Mississippi locks closed by high water
Upper Mississippi locks closed by high water
Houston, 3 July (Argus) — High water levels on the upper Mississippi River have caused several lock closures and spurred delays for barge carriers. Lock and Dams (L&D) 12, 16 and 17 on the upper Mississippi River closed 2 July and are expected to remain closed through the rest of this week and possibly into the next, according to the US Army Corps of Engineers. Locks 11, 13, 18 and 20 are expected to close on 4 July. The Corps will likely close locks 14 and 22 on 5 July, while lock 15 is expected to close 6 July. The Corps said the duration of the July 4-5 closures is unclear. Another 2-5 inches of rain fell along the western Corn Belt in the past week, according to the National Oceanic and Atmospheric Administration. High river conditions led to major flood status at Dubuque, Iowa, while other locations along the river are at moderate flooding levels. Water levels are 4-5ft below record highs on the upper Mississippi River. The outdraft at lock and dam 16 was at 211,444 cubic feet per second (cfs) on Tuesday, compared with typical flow of 41,100cfs. Major barge carrier American Commercial Barge Line anticipates 7-10 days of disruption followed by a 2-3 week catch-up. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US services contract in June, signal broad weakening
US services contract in June, signal broad weakening
Houston, 3 July (Argus) — Economic activity in the US services sector contracted in June by the most since 2020 while a report earlier this week showed contraction in manufacturing, signaling a broad-based slowdown in the economy as the second quarter came to an end. The Institute for Supply Management's (ISM) services purchasing managers index (PMI) registered 48.8 in June, down from 53.8 in May. Readings above 50 signal expansion, while those below 50 signal contraction for the services economy. The June services PMI "indicates the overall economy is contracting for the first time in 17 months," ISM said. "The decrease in the composite index in June is a result of notably lower business activity, a contraction in new orders for the second time since May 2020 and continued contraction in employment." The business activity/production index fell to 49.6 from 61.2. New orders fell by 6.8 points to 47.3. Employment fell by 1 point to 46.1. Monthly PMI reports can be volatile, but a services PMI above 49 over time generally indicates an expansion of the overall economy. "Survey respondents report that in general, business is flat or lower, and although inflation is easing, some commodities have significantly higher costs," ISM said. The prices index fell by 1.8 points to 56.3, showing slowing but robust price gains. ISM's manufacturing PMI fell to 48.5 in June from 48.7 in May, ISM reported on 1 July. It was the third consecutive month of contraction and marked a 19th month of contraction in the past 20 months. Wednesday's weaker than expected ISM report, together with a Wednesday report showing initial jobless claims last week rose to their highest in two years, slightly increase the odds that the Federal Reserve may lower its target rate later this year after maintaining it at 23-year highs since last year in an effort to stem inflation. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
South Africa’s new coalition cabinet unveiled
South Africa’s new coalition cabinet unveiled
London, 3 July (Argus) — South Africa's new coalition government has split the energy portfolio from mining and merged it with electricity, shrinking the remit of former mineral resources and energy minister Gwede Mantashe. Responsibility for the merged portfolio has been given to the former electricity minister, Kgosientsho Ramokgopa, who proved successful in alleviating the country's rolling power cuts. On 28 June, state-owned utility Eskom marked around three consecutive months without any power cuts. This compares with 2023, when South Africa experienced its worst year of loadshedding yet. Mantashe, who wields significant political power as chairperson of the African National Congress (ANC), has been assigned a smaller mineral and petroleum resources portfolio. A new ministerial cabinet was announced just over a month after the ANC lost its majority for the first time since it came to power, forcing it to form a government of national unity (GNU) with main opposition party the Democratic Alliance (DA). More parties have since joined, so that a total of 11 parties now form part of the GNU. Contrary to the ANC's previously stated intention to reduce the number of ministers, the new national executive comprises even more "to ensure that [it] is inclusive of all the parties," said ANC leader Cyril Ramaphosa, who was re-elected as president for a second term. "In some instances, we have considered it necessary to separate certain portfolios to ensure that there is sufficient focus on key issues," Ramaphosa said. The Energy Intensive Users Group (EIUG) of South Africa welcomed the establishment of a dedicated electricity and energy ministry, which can exclusively focus on helping Eskom to fulfil its mandate. The appointment of Ramokgopa as minister overseeing the new ministry also bodes well for continuity of plans already in place, the EIUG said. "We hope his broader mandate will expedite the much-needed transformation of the energy and electricity industry." The Minerals Council South Africa (MCSA) welcomed the separation of the minerals and energy portfolios as it will allow Mantashe "to focus on and give urgency to creating the right legislative environment to grow the mining industry," it said. South Africa's attractiveness as a mining investment destination has plummeted over the past decade and the country now ranks among the bottom 10 in the world, according to the Fraser Institute. Regulatory requirements in various departments — such as water, agriculture, forestry, fisheries and environment — must be harmonised to expedite the awarding of exploration and mining rights, the MCSA said. Equally important is the implementation of a mining cadastre, a digital platform to transparently and efficiently manage mineral right applications and licences, it said. Under the new administration, former department of forestry, fisheries and the environment (DFFE) minister, Barbara Creecy, was reassigned as transport minister, while the DA's Dion George was appointed in her place to oversee the DFFE. Former finance minister Enoch Godongwana, under whom South Africa recently achieved its first primary budget surplus in 15 years, was reappointed in the same position. By Elaine Mills Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more