No repair timeframe for Mt Isa rail line

Extensive flooding in the Australian state of Queensland is costing fertilizer and mining firms millions a week in lost revenue, with no timeframe for reopening critical rail infrastructure.

Domestic fertilizer producer Incitec Pivot (IPL) estimates the rail closure will result in a loss of A$10mn ($7.1mn) a week from 9 February, on a pre-interest and tax basis.

Queensland Rail (QR) said it anticipated a rectification of the line ahead of the 6-12 months being reported.

"Unfortunately, it is too early for us to be providing more definitive advice regarding repair timeframes for the Mt Isa line, given that flood waters surrounding the site and on roads connecting to the site are yet to recede," Queensland Rail chief executive Nick Easy said on 14 February.

IPL began shutting down its Phosphate Hill lines from 9 February, running each for a long as possible given storage and input constraints. The Phosphate Hill plant sustained no damage, and the Townsville fertilizer distribution and port facilities are operating with only minor damage, the group said on 11 February.

The group imports raw materials, including sulphur, sulphuric acid and potash, through the port of Townsville, and delivers the product by rail 1,000km to Phosphate Hill in the state's far west. Finished fertilizer products make the back-haul journey to deliver to domestic and export customers.

IPL's other Queensland facilities, including the Dyno Nobel ammonium nitrate plant in Moranbah, and urea and ammonium sulphate plants near Brisbane, were unaffected.

Townsville-based Sun Metal's zinc refinery was not damaged in the flooding, but its sulphuric acid production will be exported until rail services resume and deliveries can be made to main offtaker IPL at Phosphate Hill, as well as domestic truck deliveries.

Enquiries in the freight market are noted out until April for lifting sulphuric acid cargoes for delivery into southeast Asia. One domestic shipment of acid has already been scheduled next week to relieve Sun Metal's stock levels.

The Australian Bureau of Meteorology said the flooding in the Flinders River is the worst in over 50 years.

Aerial inspections of the rail line on 7 February by QR showed the extent of the flooding, with a train stowed in what was considered a high point at Nelia found inundated and derailed.

QR said the locomotive and 80 wagons contained zinc and lead concentrate and copper anodes from Glencore's operations.

Glencore operates numerous mines in the area, including the Mt Isa smelter, and copper and zinc mines in the Mt Isa region, Townsville refinery and port facilities.

MMG's Dugald River zinc mine is 65km northwest of Cloncurry. It utilised the rail line and exports through the port of Townsville.

South 32 operates the Cannington lead and silver mine, around 200km southeast of Mt Isa, with exports also routed through Townsville.

New Century exports zinc concentrate from the port of Karumba in the Gulf of Carpentaria, which also experienced serious rainfall.

QR said it had begun removing debris from the track at Richmond, has ballast trains and crews positioned at both Cloncurry and Hughenden, and delivered 5,000 sleepers to Hughenden, which will be followed by a further 5,000 sleepers arriving in Cloncurry by the end of the week in preparation for track repairs.