Heavy Rain could Impact 6.5-7.5 million tonnes Coal Output for BMA

BHP Billiton and Mitsubishi Corporation announced preliminary estimate of production impact on the coking coal joint venture, BHP Billiton Mitsubishi Alliance (BMA). They estimate the production impact could be 6.5-7.5 million tonnes for fiscal 2008. BHP Billiton said the impact on BHP Billiton Mitsui (BMC) could be 0.5-1 million tonnes. They try to resume the normal operation to minimize the impact on the customers.

The mines in Queensland, Australia were suffered from heavy rain between January 18 and 20. BMA declared force majeure on January 24. However, another rain between February 9 and 14 delayed the resumption of the operations. BMA said they cannot operate safely and maintain access for people and supplies following the rains. The firm tries to focus on ensuring safety of employees and contractors and on swift recovery of operations including dewatering of the pits while the firm working with Environmental Protection Agency. The firm would provide updated information if the impact would be different much from the preliminary assessment.