<article><p class="lead">Flooding has cut access to some sites owned by Australian coal mining firm Whitehaven, as the Namoi river burst its banks near the New South Wales towns of Gunnedah and Narrabri.</p><p>Water levels in the Namoi peaked around 8.5m on 24 October, flooding roads and causing temporary access problems to some Whitehaven sites. Localised flooding also caused the upper section of the Hunter Coal network to be closed near Narrabri but this has reopened. </p><p>Waters are receding but flooding is expected along the Namoi river and Narrabri creek for a few more days. The Australian Bureau of Meteorology (BoM) forecasts more rain for 30-31 October, which could lead to more flooding given the saturated ground and waterways. The river flows west from Gunnedah through the coal mining towns of Narrabri and Boggabri.</p><p>Whitehaven operates the 12.5mn t/yr Maules Creek thermal and coking coal mine and the 6mn t/yr Narrabri thermal coal mine in the region, while Japan's Idemitsu operates the 7mn t/yr Boggabri thermal and metallurgical coal mine. </p><p>Whitehaven, which saw a <a href="https://direct.argusmedia.com/newsandanalysis/article/2381933">dip in its July-September output because of flooding</a>, has been operating helicopters to enable small shift changes while access roads remain flooded and has increased coal haulage using contractors at Maules Creek during dryer periods. Its underground Narrabri mine has fewer operating issues from the rain but still has access problems. </p><p>The flooding has been less disruptive in the Hunter valley in the past week. But the BoM has issued a minor to moderate flood warning for 25-26 October at Maitland, where flooding in July <a href="https://direct.argusmedia.com/newsandanalysis/article/2351687">disrupted deliveries to Newcastle for two weeks</a>. </p><p>The third La Nina weather trend year in a row has disrupted coal shipments, with <a href="https://direct.argusmedia.com/newsandanalysis/article/2378782">Newcastle exports tracking 12pc behind 2021</a> and 16pc behind the 2019 peak during January-September compared with the same period in earlier years. <a href="https://direct.argusmedia.com/newsandanalysis/article/2379565">Queensland shipments are also behind</a>, down by 5pc for January-September against the same period in 2021 and 13pc on 2019. </p><p>Argus last assessed high-grade 6,000 kcal/kg NAR thermal coal at $339.41/t fob Newcastle on 21 October, down from $439.50/t on 16 September and from $383.82/t on 1 July. It assessed lower grade 5,500 kcal/kg NAR coal at $147.15/t fob Newcastle on 21 October, down from $189.49/t on 16 September and from $188.73/t on 1 July.</p><p>The heat-adjusted premium for higher grade thermal coal on a NAR 6,000 basis was $178.88/t on 21 October, down from $232.78/t on 16 September but still much higher than the five-year average.</p><p>Argus assessed the semi-soft mid-volatile metallurgical coal price at $250.50/t fob Australia on 21 October, up from $209.25/t on 16 September but down from $400/t on 31 May.</p><p class="bylines">By Jo Clarke</p><p><div class="picture"><div><span class="pic_title">Australian coal price comparisons</span> <span class="units">($/t)</span></div><img src="https://argus-public-assets-us.s3.amazonaws.com/2022/10/25/australiancoalpricecomparisons25102022043516.jpg"></div></article>
