http://www.bloomberg.com/apps/news?pid=20601081&sid=asZxMybtQIR0&refer=australia
Macarthur Coal May Cut Sales Estimate a Second Time on Floods
By Jesse Riseborough and Brett Foley
March 28 (Bloomberg) -- Macarthur Coal
Ltd., the world's biggest shipper of pulverized coal used to make steel, may
cut its fiscal year sales forecast a second time after flooding at its
Australian mines.
``We are still reasonably comfortable with it but we would have to say
the risk is on the downside'' to the forecast, Ian McAleese, executive manager
of corporate development for the Brisbane-based company, said today by phone.
``We are still pumping water out of our pits.''
Macarthur cut its sales forecast 11 percent in November to 4 million
metric tons after congestion at Australian coal ports and railroads curbed
exports. Coal prices have soared to records as January flooding in Australia's
Queensland state forced at least six producers including Macarthur, Xstrata Plc
and BHP Billiton Ltd. to warn of missed deliveries.
``We will provide the market with a full update and status of the force
majeure once we're through the end of this month and have had time to assess
the whole situation,'' McAleese said.
Macarthur rose as much as 57 cents, or 4.5 percent, to A$13.25 and
traded at A$12.91 at 12:51 p.m. Sydney time on the Australian Stock Exchange.
The stock has gained 32 percent this year.
Force majeure is a legal clause that allows a company to miss
deliveries because of circumstances beyond its control. It remains in place on
deliveries from its Coppabella and Moorvale mines. About 90 percent of
Macarthur's output is pulverized coal, used in a steel-making process called
pulverized coal injection.
To contact the reporter on this story: Jesse Riseborough in Melbourne
at [EMAIL PROTECTED]
Last Updated: March 27, 2008 22:00 EDT
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