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SYDNEY - Coal & Allied Industries Ltd. on Wednesday warned its second half 2006 earnings would tumble to only about A$60 million ($68.3 million) versus A$163.7 million a year earlier due to shipping bottlenecks in eastern Australia.
As a result of congestion at the Port of Newcastle, operating costs over the second half had risen, said Coal & Allied, which is 75 per cent owned by Rio Tinto Ltd Plc.
"The significant shipping queues, particularly in November and December have not only impacted sales volumes and demurrage, but they have had flow-on effects through the production chain, the company's managing director, Douglas Ritchie said in a statement.
Coal & Allied is one of the major coal producers in the Upper Hunter Valley region of New South Wales state, employing about 1500 people across three operations.
Coal & Allied mined about 29 million tonnes of thermal and semi-soft coking coal in 2006, reported first-half earnings in 2006 of A$146.5 million.
- REUTERS
