BHP Billiton warns of coal market freefall
BHP Billiton has become the latest mining giant to warn of an impending decline of coal production after the horror months in Queensland wiped 2% off the state’s economy.
After a finalized damage bill of just under $6 billion, BHP is warning that the spate of disasters in Queensland has caused considerable damage to the country’s coal export capacity.
Although iron ore, BHP's largest sector, remained relatively unscathed by the flooding and cyclones, the company has cautioned its investors to expect the worst, despite an increase in average iron ore output by 7%.
The warnings come as a recent findings show that flooding has caused a drop of $7 billion in production and over $600 million in royalties.