The Times Australia
The Times World News

.

Rain makes coal heavy, slippery and harder to dig up. So what does La Niña mean for this already disrupted industry?

  • Written by Lurion De Mello, Senior Lecturer in Finance, Macquarie University
Rain makes coal heavy, slippery and harder to dig up. So what does La Niña mean for this already disrupted industry?

As the La Niña weather event wreaks havoc across New South Wales, coal operators are suffering. The Australian coal company Whitehaven is among them – last week slashing[1] its production forecasts after disruption by floods and heavy rain.

The irony of a coal company being hit by extreme weather events was not lost[2] on some. While it’s hard to know how climate change is influencing this La Niña, evidence suggests[3] flood events will become more frequent and intense as the planet warms.

Climate variations[4] cause problems for many industries, and coal is not immune. Wet coal is heavier to transport. And rain can disrupt both mine operations and the transport networks crucial to moving coal and mine workers.

All this comes as coal demand surges, and as pressure mounts for the industry to wind back production to help tackle climate change. So let’s look at what the industry faces in these turbulent times.

truck in piles of coal
As the La Niña weather event wreaks havoc across New South Wales, coal operators are suffering. Dave Hunt/AAP

Rain on the coal parade

Australia is the world’s second-biggest thermal coal exporter, behind Indonesia. Our shipments mostly end up[5] in Japan, India, Vietnam and South Korea.

Thermal coal is burnt to make electricity. Australia also produces metallurgical or “coking” coal used to make steel.

In recent years, extreme weather in Australia has exposed the coal industry’s vulnerability to climate risk.

Research shows[6] the 2010/2011 Queensland floods affected about 40 of the state’s 50 coal mines, costing more than A$2 billion in lost production.

Read more: Climate change will clearly disrupt El Niño and La Niña this decade – 40 years earlier than we thought[7]

Australia is now experiencing more heavy rain thanks to a third consecutive La Niña. It led to floods in Queensland[8] last year that forced the Baralaba North Coal Mine to suspend operations after water affected the mine and access roads. Workers were stood down without pay, prompting anger from the union.

In the NSW Hunter Valley, heavy rain in July this year forced closures[9] to a rail network that connects about 40 coal mines to the Port of Newcastle. Coal export services were suspended and the disruption pushed up coal prices.

Heavy rain is likely to interrupt supply for the remainder of spring and into summer. Last week, Whitehaven said rain and local flooding were affecting production[10] at two open-cut mines near Gunnedah in NSW. Roads were cut off as dams and rivers near the mine spilled over, forcing the company to transport staff to the mine by helicopter.

Rain can bring other problems. Wet coal can slip[11] and spill from conveyor belts while being loaded onto ships. And wet coal is heavy, making it more expensive to transport.

coal train rounds a bend
Australia’s coal industry relies on rail links that can be disrupted in heavy rain. Dan Himbrechts/AAP

Volatile times for coal

Australian coal exports remain strong[12]. But the rain disruptions add to already unsettled times for coal, both here and abroad.

Demand for coal has increased in the past two years, for a number of reasons. First is the global economic rebound[13] from the COVID pandemic. Second is soaring gas prices following[14] Russia’s war on Ukraine.

Diesel supply issues[15] and upcoming cuts to crude oil production[16] are also driving coal demand.

As the Northern Hemisphere heads into winter, demand is likely to increase further. The United Kingdom, for example, plans to keep coal plants operating[17] this winter, despite a longer-term plan to permanently close them by October 2024. And Asia may have to lean more towards coal for the next six months as liquified natural gas flows into Europe.

All this has pushed coal prices up[18]. So rain-related disruptions to Australian coal exports may result in missed opportunities for our coal operators.

Read more: Global carbon emissions at record levels with no signs of shrinking, new data shows. Humanity has a monumental task ahead[19]

At the same time, the coal industry faces headwinds.

Shipping costs have reached new highs[20]. For Australian exporters, China’s ban[21] on Australian coal is an added complication – however this week’s meeting[22] between the two nation’s leaders may have thawed diplomatic relations.

Then, of course, there’s climate change. Coal is the world’s largest source[23] of energy-related carbon dioxide emissions. There’s widespread acknowledgement we must move away from burning coal and transition to renewable energy to avoid the worst climate harms.

Many countries still rely on coal for energy security and for use in industrial processes. Coal also supports jobs and provides export income.

In India, for example, the minister in charge of coal production says[24] the fossil fuel will play an important role in the country until at least 2040. And a study released last month found[25] hundreds of coal companies around the world were developing new mines and power stations.

So moving away from coal – particularly thermal coal – is likely to take time.

wind turbines against blue sky
There is widespread acknowledgement that the world must transition to renewable energy. Russell Freeman/AAP

What does all this mean?

In the short term, as La Niña hangs around[26], Australia may struggle to fulfil its coal supply commitments over the Southern Hemisphere spring and summer.

This is likely to add further headaches to the already crunched energy market.

Wet conditions are not the only climate threat[27] to the mining industry. Drought and heat, for example, reduce the availability of water needed to operate mines. And extreme heat can affect equipment, electricity supply and worker productivity.

In the longer term, the prospects for Australia’s coal exports are very uncertain. The Reserve Bank, for example, says[28] coal and gas exports from Australia would at least halve if big buyers including China, Japan and South Korea meet their climate commitments.

There are many types of coal – and challenges abound in replacing them with cleaner alternatives. Until the transition is complete, coal is among many industries that must adapt to future weather extremes.

Read more: A technologically advanced society is choosing to destroy itself. It's both fascinating and horrifying to watch[29]

References

  1. ^ slashing (www.smh.com.au)
  2. ^ not lost (www.smh.com.au)
  3. ^ suggests (theconversation.com)
  4. ^ Climate variations (science.nasa.gov)
  5. ^ end up (www.worldstopexports.com)
  6. ^ shows (www.researchgate.net)
  7. ^ Climate change will clearly disrupt El Niño and La Niña this decade – 40 years earlier than we thought (theconversation.com)
  8. ^ floods in Queensland (www.abc.net.au)
  9. ^ forced closures (www.afr.com)
  10. ^ were affecting production (www.smh.com.au)
  11. ^ slip (usea.org)
  12. ^ remain strong (tradingeconomics.com)
  13. ^ rebound (www.iea.org)
  14. ^ following (www.cnbc.com)
  15. ^ Diesel supply issues (oilprice.com)
  16. ^ crude oil production (www.reuters.com)
  17. ^ coal plants operating (www.reuters.com)
  18. ^ coal prices up (tradingeconomics.com)
  19. ^ Global carbon emissions at record levels with no signs of shrinking, new data shows. Humanity has a monumental task ahead (theconversation.com)
  20. ^ highs (www.freightwaves.com)
  21. ^ ban (www.smh.com.au)
  22. ^ meeting (www.smh.com.au)
  23. ^ largest source (www.iea.org)
  24. ^ says (www.canberratimes.com.au)
  25. ^ found (www.theguardian.com)
  26. ^ La Niña hangs around (www.argusmedia.com)
  27. ^ climate threat (reneweconomy.com.au)
  28. ^ says (www.smh.com.au)
  29. ^ A technologically advanced society is choosing to destroy itself. It's both fascinating and horrifying to watch (theconversation.com)

Read more https://theconversation.com/rain-makes-coal-heavy-slippery-and-harder-to-dig-up-so-what-does-la-nina-mean-for-this-already-disrupted-industry-192018

Times Magazine

Headless CMS in Digital Twins and 3D Product Experiences

Image by freepik As the metaverse becomes more advanced and accessible, it's clear that multiple sectors will use digital twins and 3D product experiences to visualize, connect, and streamline efforts better. A digital twin is a virtual replica of ...

The Decline of Hyper-Casual: How Mid-Core Mobile Games Took Over in 2025

In recent years, the mobile gaming landscape has undergone a significant transformation, with mid-core mobile games emerging as the dominant force in app stores by 2025. This shift is underpinned by changing user habits and evolving monetization tr...

Understanding ITIL 4 and PRINCE2 Project Management Synergy

Key Highlights ITIL 4 focuses on IT service management, emphasising continual improvement and value creation through modern digital transformation approaches. PRINCE2 project management supports systematic planning and execution of projects wit...

What AI Adoption Means for the Future of Workplace Risk Management

Image by freepik As industrial operations become more complex and fast-paced, the risks faced by workers and employers alike continue to grow. Traditional safety models—reliant on manual oversight, reactive investigations, and standardised checklist...

From Beach Bops to Alpine Anthems: Your Sonos Survival Guide for a Long Weekend Escape

Alright, fellow adventurers and relaxation enthusiasts! So, you've packed your bags, charged your devices, and mentally prepared for that glorious King's Birthday long weekend. But hold on, are you really ready? Because a true long weekend warrior kn...

Effective Commercial Pest Control Solutions for a Safer Workplace

Keeping a workplace clean, safe, and free from pests is essential for maintaining productivity, protecting employee health, and upholding a company's reputation. Pests pose health risks, can cause structural damage, and can lead to serious legal an...

The Times Features

Prefab’s Second Life: Why Australia’s Backyard Boom Needs a Circular Makeover

The humble granny flat is being reimagined not just as a fix for housing shortages, but as a cornerstone of circular, factory-built architecture. But are our systems ready to s...

Melbourne’s Burglary Boom: Break-Ins Surge Nearly 25%

Victorian homeowners are being warned to act now, as rising break-ins and falling arrest rates paint a worrying picture for suburban safety. Melbourne residents are facing an ...

Exploring the Curriculum at a Modern Junior School in Melbourne

Key Highlights The curriculum at junior schools emphasises whole-person development, catering to children’s physical, emotional, and intellectual needs. It ensures early year...

Distressed by all the bad news? Here’s how to stay informed but still look after yourself

If you’re feeling like the news is particularly bad at the moment, you’re not alone. But many of us can’t look away – and don’t want to. Engaging with news can help us make ...

The Role of Your GP in Creating a Chronic Disease Management Plan That Works

Living with a long-term condition, whether that is diabetes, asthma, arthritis or heart disease, means making hundreds of small decisions every day. You plan your diet against m...

Troubleshooting Flickering Lights: A Comprehensive Guide for Homeowners

Image by rawpixel.com on Freepik Effectively addressing flickering lights in your home is more than just a matter of convenience; it's a pivotal aspect of both home safety and en...