PERTH (miningweekly.com) – Three out of the four coal systems operated by freight hauler Aurizon, which make up the Central Queensland coal network (CQCN), have been reopened following floods associated with Cyclone Debbie, with trains operating under restricted conditions with some reduced capacity.
Aurizon on Tuesday announced that its Blackwater coal system, which connects into the Port of Gladstone, reopened to coal traffic on April 10, while the Moura system into the Port of Gladstone reopened on April 12. The Newlands coal system, into the Abbot Point Coal Terminal, reopened on April 13.
Meanwhile, the Goonyella coal system, which has initially been slated to take five weeks to repair, will be reopened on April 26, nearly one-and-a-half weeks ahead of schedule.
Aurizon noted that between 12-million and 14-million tonnes less will be hauled in 2017, owing to the closure of the CQCN, with Aurizon now expecting its full-year coal haulage to range between 190-million to 200-million tonnes.
Meanwhile, flood repair costs are expected to reach between A$40-million and A$50-million, of which around A$30-million will be classified as operating costs and will impact the companies earnings before interest and tax (Ebit).
Aurizon is expecting total 2017 Ebit reductions of between A$100-million and A$150-million as a result of Cyclone Debbie impacts, of which between A$70-million and A$80-million will be recovered through regulatory processes in future years.