Derailment in Queensland town may hamper coal transport

A coal train derailment yesterday afternoon near Middlemount, Queensland might temporarily disrupt coking coal shipments from a few nearby mines, including mines owned by UK-South African mining firm Anglo American and Swiss mining firm Glencore.

The unloaded coal train, which included a locomotive and wagons, derailed at about 1pm Australian Eastern Standard Time (15:00 GMT) on 19 January near the town of Middlemount, damaging the track and overhead power lines, rail operator Aurizon said. Recovery crews have been mobilised and recovery work has commenced.

"It is anticipated the recovery will take a number of days and there will be train cancellations as a result," Aurizon said. "Aurizon has notified customers who operate coal mines in this area." Some coal mines in the area include Anglo American's German Creek and Glencore's Oaky North.

While the cause of the derailment is unknown for now, market participants were not too concerned about the incident. "At this stage, we are hearing that the line will be operational again by Friday 24 January," an Australian coal producer said.

A Japanese steel producer pointed out that derailments typically take a few days to recover unless there is extensive damage to the surrounding infrastructure.

By Rou Urn Lee