* By Andrew Fraser * From: The Australian * January 26, 2011 12:00AM
QUEENSLAND'S besieged mining industry is asking the State Government that it be allowed to quickly pump water out of its flooded mines to prepare for the possibility of further heavy rains and flooding.
Part of the urgency is driven by customers in Asian countries who have been able to absorb the current shortage of coal supplies due to the flood, but would struggle if there were any future shortages, reported The Australian.
This lack of coal could, in turn, lead to big cutbacks in steel production, which could force up the price of steel internationally.
Currently, about 45 of Queensland's 57 mines are not working at full capacity, and at least 15 of these are open-cut mines which have so much water in them that they now resemble lakes.
Queensland Resources Council chief executive Michael Roche said that while he appreciated the desirability of strong environmental controls over water pumped out of mines, the situation was critical.
While the State Government has processed 26 requests for Temporary Environmental Programs -- which allows miners to pump water directly out of mines and into creeks -- there are a further 15 waiting to be processed.
Mr Roche said that instead of treating each case individually, he wanted the State Government to give a blanket approval to expedite the process.
"We are in a position right now where the weather bureau is tracking three cyclones, and if you look at traditional weather patterns in central and north Queensland, then the really wet weather kicks in around February and March," he said.
"La Nina is forecast to last until May, and we certainly hope we don't have another weather event like the one we've had, but we want to be prepared for it as much as possible."
He said the water pumped out of mines and into creeks was hardly of drinking standard but could be treated to a standard suitable for human consumption.
Other suppliers in South Africa and South America have also been hit by their own floods, while China has sufficient coal production of its own to meet a short-term shortfall.
CCC Price at posting:
85.0¢ Sentiment: Buy Disclosure: Held