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Reuters
Reuters
Business

Yancoal resumes coal mining after Australia's heavy rains

Yancoal has resumed operations at two mines in Australia's coal-producing Hunter Valley region, the miner said on Thursday, after heavy rains and flooding in New South Wales state disrupted activities earlier in the week.

Relentless rains for five days - the worst downpour in more than half a century - burst river banks, inundating homes, roads, bridges and farms and cutting off entire towns in Australia's east.

Australians hit by devastating floodwaters began returning to their homes on Thursday as skies cleared and authorities accelerated clean-up efforts.

"Operations at MTW and Stratford have resumed," a Yancoal spokesman said in an emailed comment to Reuters, referring to Mount Thorley Warkworth.

Australian Rail Track Corp (ARTC) partially reopened Hunter Valley coal rail lines on Wednesday to Newcastle, the world's biggest coal export port, but not before supply concerns lifted thermal coal prices to two-year highs near $100 a tonne.

The Hunter Valley rail network also serves mines run by BHP Group, Glencore Plc, New Hope Corp, Whitehaven Coal among others.

Peer Whitehaven downgraded its production target, partly due to weather-related disruption this week while Glencore has also said it has reduced output at some sites as a safety precaution.

New Hope said it was experiencing only a minor disruption and was still able to get coal to port.

The Port of Newcastle, which last year shipped 158 million tonnes of coal, slowed ship movements this week but said on Wednesday it was continuing to operate.

(Reporting by Melanie Burton; Editing by Clarence Fernandez)

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