Woes continue for Australian coal22 Nov 2007 01:06
Apart from the lack of port capacity in Australia which is hampering coal unloading and shipment, there is now a second headache for small and mid-tear coal miners, namely the lack of rail capacity. The only miners with long-term contacts with the likes of Pacific National and Queensland Rail are the big boys: BHP, Rio Tinto and Xsrata. There is virtually nil extra capacity for the smaller miners. An increasing demand and price for coal is all very well provided you can deliver the goods! One Australian mid-tear coal miner is already considering cutting production and laying off around 200 miners. The Ozzies failure to expand their port and industrial rail capacity before this long predicted Chinese commodities frenzy will cost the smaller coal and base metals miners dear.