Singapore (Platts)--23Jan2013/439 am EST/939 GMT

Cyclone Oswald, which has been downgraded to a tropical storm, is expected to cause heavy rainfall in the coal-rich Queensland region, the Australian Bureau of Meteorology said Wednesday.

"The monsoon trough extended from ex-Tropical Cyclone Oswald to the Queensland east coast near Cairns," the Bureau of Meteorology said on its website. "Six-hour rainfall accumulations of 100 to 200 mm are possible. This heavy rain may also worsen the existing flood situation in areas with flood warnings current across parts of north Queensland."

The flood warning includes the Bowen Basin, where many coking coal mines are situated, and the Mackay region where coal export terminals such as Dalrymple Bay Coal Terminal and Hay Point terminal are based.

The Hay Point terminal remains open as yet, an officer at the port said.

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"We have implemented the usual actions because of inclement weather. Because we are an offshore berth, we can expect delays in loading," he added.

Based on the forecast by the meteorological bureau, rainfall is expected to subside by Saturday.

"We are all holding our breath hoping it's nothing big," one Australian miner said.

Excessive rainfall can have an impact on the spot price of raw materials such as coking coal. In March last year, wet weather disrupted operations at some Queensland coking coal mines, leading BHP Billiton-Mitsubishi Alliance to declare a force majeure.

In 2010-2011, severe floods in Queensland caused seaborne coking coal prices to surge by more than 50% in a month.

--Edwin Yeo, edwin_yeo@platts.com
--Edited by E Shailaja Nair, shailaja_nair@platts.com

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