Queensland Floods Impact Boyne Aluminum Smelter
The company was unable to provide an estimate of the full impact of the disrup- tion or the duration of the force majeure.
Boyne Smelters Ltd. is owned 59.39% by Rio Tinto Alcan, 9.5% by YKK Aluminium, 9.29% by SLM Australia, 7.71% by SLMA No. 2, 6.46% by Ryowa Development II, 5.19% by Ryowa Develop- ment, and 2.46% by Sumitomo Chemical. The smelter has capacity to produce 558,000 mt/y of T-bar, ingot and billets.
The Queensland floods impacted vast areas of the state, including the state capi- tol, Brisbane, and crippled the state’s coal industry, which produced 195 million mt of coal in calendar year 2009. Rio Tinto, BHP Billiton, Anglo American, Xstrata, Wes- farmers and Macarthur Coal, among others, declared force majeur on some or all of their coal deliveries from Queensland.
The Queensland Resources Council estimated in mid-January that the state’s coal industry had lost A$2.3 billion in sales as a result of the flooding. At that time, about 15% of the state’s coal mines were in full production, 60% were operat- ing under restrictions, and a further 25% had yet to resume normal operations.