An analyst said Wednesday that floods in Queensland, Australia, would block rail transport of zinc concentrates from the area to Port Townsville, and the disruption could last at least a month, Reuters reported.
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Major mining companies such as Glencore, MMG Ltd and Outh 32 carry zinc and lead concentrates from the Mt Isa area through the 1,000 km (620 miles) railway line, and at least one of them intends to switch to more expensive automobile transportation as a temporary alternative.
Forty percent of Australia’s zinc production is shipped outward through the port of Townsville, with a shipment volume of about 700,000 tons per year, accounting for 5% of global supply.
Last week, the northern coast of Queensland was flooded and floods swept inland, flooding vast areas of land in record-breaking mud.
Railway operator Queensland Railway said that 400 kilometres of railway tracks between Cronkley and Huhnden were closed and the company was waiting for the flood to subside to assess the disaster.
Pacific Freight International, Glencore and Emergency Services are also assessing the loss of a freight train carrying zinc, lead concentrates and copper. The train, with 80 carriages, was moved to higher ground before the flood, but it was also confirmed by an aerial survey last week that it had been submerged.
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A spokesman for Queensland Railway said it was too early to determine how long the railway would be closed.
Queensland Railway said in a statement: “The area near Julia Creek is still severely affected by floods, which means that it is not yet possible to enter the area to assess the disaster situation.”
“Cranes and other large machinery will be used in the post-disaster repair work, but the repair work can not be carried out until the flood recedes and ground conditions permit.”
Some analysts said that the railway line may be closed for at least one month, depending on the extent and scale of the damage, but the damage can not be fully determined within at least a week.
Lloyd Hain of AME said that “first they have to wait for the flood to recede for disaster assessment, and then the amount of repair work depends on the extent of damage to railway lines and dams. If a lot of earthwork is needed, it may take a long time”.
Glencore said its mining operations in North Queensland were continuing and the transport network was being closely monitored, while MMG said it was considering trucking.
“The company is aware of the impact on railway logistics and is looking for alternative transport options, including the use of cars to transport concentrates to the port of Townsville,” MMG said in an e-mail statement.
“At present, production is going on normally, but the products are temporarily stacked in the mine.”
South 32 said it would release its semi-annual report on Thursday, without commenting on the matter. A spokesman for New Century Resources said the company had not been affected by the disaster for the time being by pipeline transportation of concentrates.
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