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Xstrata declares force majeure in New South Wales

Oilfield Technology,

Xstrata has declared force majeure at its Ulan mine in New South Wales, Australia. Production at the mine has been forced to halt due to heavy rain.

The legal clause has been brought into effect across much of the country due to the floods and cyclones that has devastated the coal and agricultural industries since November. Most of the affected outfits are in the state of Queensland.

Xstrata spokesman James Rickards said of the Ulan mine: “[Xstrata has] declared force majeure on certain customer vessels for the Ulan operation, following the interruption to production as a result of significant water underground following recent heavy rains.” Xstrata has currently given no estimate for when the mine will reopen.

The Ulan mine produces about 4 million tpa of thermal coal. Xstrata’s Blakefield mine is also still closed without an estimate for when it will reopen. The 7.5 million tpa mine, also in New South Wales, was shut in January after a fire broke out.

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