Wollongong Coal has claimed the force of nature in the form of Cyclone Debbie has prevented it fulfilling coal supply contracts.
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The miner, owned by India’s Jindal Steel and Power group, told the Indian financial press it had been forced to declare “force majeure”.
This claim of unforeseeable circumstances (translated from French as “superior force”) is sometimes invoked after natural disasters to alleviate contractual obligations.
Several Queensland miners made a similar declaration after Debbie. But Wollongong’s claim stood out because Cyclone Debbie itself did not travel any further south than Rockhampton.
Wollongong Coal has not updated investors on any of these problems, via statements on the Australian Securities Exchange.
Jindal Steel and Power CEO Ravi Uppal told Reuters India Cyclone Debbie had forced it to abandon mining in early April. “We couldn't get the trains, we couldn't get the power supply and we had damage caused by the storm when the water came into the mine so it was very dislocating,” he said.
We couldn't get the trains, we couldn't get the power supply and we had damage caused by the storm.
- Ravi Uppal, CEO
“There is non-stop rain. We had to announce a situation of force majeure.”
Wollongong Coal has not responded the the Mercury’s questions about the force majeure claims.
Meanwhile, Wollongong Coal revealed it may explore a different method of mining in a bid to get permission to expand under the water catchment from Russell Vale.
Rather than the longwall mining it had sought, the miner has told investors it will explore bord and pillar mining, where pillars are left in place so the roof does not collapse as severely, reducing the effects of subsidence.
Subsidence damage creeks and swamps in the water catchment above, and the risk of catchment drainage, meant the Planning Assessment Commission did not consent to expansion.
Its update to investors for the March quarter claimed the different method would solve the problems.
“WCL continues to explore all other options including amending the underground expansion plan application to seek approval for bord and pillar (i.e. zero subsidence) mining plans for Russell Vale Colliery (Wonga East) that can take care of community concerns over subsidence and areas of uncertainties identified in the Planning Assessment Commission’s report,” it said.
