Cyclone strikes at largest coal exporter

Tropical cyclone Debbie crashed into Queensland on the Australian coast, causing devastating winds and rains to sweep away everything in its path. The storm is blowing away trees and power lines. The region was hit by the most powerful storm ever, as strong as the tropical cyclone Yasi, which hit northern Queensland on February 3, 2011.

BHP Billiton Ltd. and Glencore Plc have announced ahead of time that they will end production in Australia's Queensland area, the world's largest exporter of coal used in steel production, as the strongest cyclone since 2011 approaches.

Operations at the South Walker Creek metallurgical coal mines have been suspended since the end of Monday's day shift and are being prepared for high rainfall conditions during the week, BHP said in a statement. Glencore is preparing to temporarily suspend its exit from the Collinsville and Newlands mine, the company said in a separate release. Aurizon, Australia's largest rail freight operator, stopped exporting coal to the ports of Abbot Point, Dalrymple Bay and Hay Point back on Sunday. Trains operating on the Goonyella and Newlands systems were removed.

Heavy tropical cyclone Debbie crossed Hamilton Island at its peak with winds of up to 260 kilometers per hour, according to the Bureau of Meteorology. The storm currently has sustained winds of up to 140 km /h and gusts of about 170 km /h, which is equivalent to a Category 1 Atlantic hurricane. Previous storms in Australia have flooded mines and machinery, resulting in sharp surges in coal prices. Manufacturers are now much better prepared for the post-2011 cyclone. Most of the miners have increased their safety by raising their dams.