The disruption to coal production in Australia is prompting power producers to seek elsewhere for their coal supplies. Malaysia’s national power producer Tenaga Nasional, which normally sources its coal from Australia, has been buying coal from a number of different producers, particularly from South Africa.
"The situation in Australia has affected us to a certain extent. Some of our suppliers in Australia cannot deliver the coal to us, due to the flooding in Queensland," said Che Khalib Mohamad Noh, Tenaga's chief executive officer. Tenaga has also said it is negotiating increased purchases of coal from neighbouring Indonesia.
Australia’s AU$ 50 billion coal industry has been badly damaged by poor weather. Production has been slowed by closed mines and large quantities of coking coal have been destroyed by flooding.
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