Deluge at Australian Coal Mines to Drive Gains in Global Prices

Bloomberg.com reports that coal output is being interrupted at Xstrata PLC (LON:XTA) and Rio Tinto’s (NYSE:RIO) Australian coal mines because of extreme weather.

The story is quoted as saying:

Australia had its wettest September-to-November spring on record, and the Bureau of Meteorology says southeastern Queensland and eastern New South Wales have a 60 percent to 70 percent chance of getting above-average falls during January to March. This means coking coal used by steelmakers may surge 20 percent to $250 a metric ton in the second quarter of 2011, according to UBS AG forecasts

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