Macarthur downgrades guidance on Qld floods
Macarthur downgrades guidance on Qld floods

Macarthur Coal has downgraded guidance for first half net profit, as it extends its force majeure declaration following heavy rain in Queensland.

Macarthur said in a statement it now expected net profit in the first half of 2010/11 to be at the lower end of earlier guidance, closer to $97 million than to $102 million.

But despite the heavy rain, Macarthur said coal sales for the six months to December 31 were 2.4 million tonnes, in line with guidance provided to the market in mid-December.

The company said it had resumed coal transport to the Dalrymple Bay Coal Terminal this week after the Goonyella rail corridor re-opened, however future railings would be dependent on coal availability.

Coal was being mined at Moorvale, but the sustained wet weather had slowed coal recovery at Coppabella.

Macarthur said dewatering of the pits at both sites was underway and that coal recovery would return to normal over the next few weeks.

"Once the pits are free of water, we'll have more coal exposed that can be processed and transported, but it is not possible to predict when we will return to a steady state of mining as that largely depends on any future rain," chief executive Nicole Hollows said.

At 9am, shares in MacArthur Coal were down 26 cents, or 2.02 per cent, to $12.61.

The West Australian

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