New Hope Corporation Ltd (ASX:NHC) says it has been forced to declare force majeure on a number of its export coal contracts due to a lack of certainty surrounding the recovery of the Western Rail System in Queensland.
Following the state's flooding crisis and ongoing wet weather conditions, the coal producer now expects rail capacity on the Western Rail System will be unavailable until mid April this year.
The company says it cannot provide an estimate of the financial impact of the rail service disruptions, until it can gauge the time needed to undertake infrastructure repairs and the amount of coal that can be delivered through alternative transport options.
The Western Rail System infrastructure between the Acland mine site and Ipswich has experienced significant damage in Queensland and Queensland Rail have not as yet provide an official update as to how long they expect the recovery process to take.
New Hope Corporation generated a net profit of $183.83 million in the 2010 financial year.
NHC Price at posting:
$4.93 Sentiment: None Disclosure: Held
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