Floods cost mounts, more businesses hit.

QUEENSLAND'S flood crisis continues to hit
corporate Australia, as local stocks and the
dollar come under pressure on economic
concerns.
The Australian dollar is continuing to face heavy
pressure on the back of the crippling impact of
the worst floods the state has seen since 1974.
The Australian dollar was trading at US98.45
cents late today, up from a morning low of
US98.06c that had served as its lowest level since
December 9.
The increasing impact of floods that began in
December and have dented local economic
forecasts and confidence have weighed on the
currency for much of the past week.
After surging broadly in the second half of 2010
on the back of a mining boom and a string of
interest rate hikes from the country ’s central
bank, concerns about the floods’ impact on the
area’s mining and farming industries have
coupled with broader European debt concerns to
weigh on the Australian dollar.
The Australian sharemarket closed higher today
on the back of the resources market but
company exposures to Queensland ’s floods limit
the gains.
The benchmark S&P/ASX200 index was up 13.5
points, or 0.29 per cent, at 4,724.2 points, while
the broader All Ordinaries index was up 17 points,
or 0.35 per cent, at 4,831.9 points.
Companies affected by the floods have seen their
shares fall on the Australian market, with Caltex
Australia hit by investors today when it said a
shut down at its Queensland refinery could cost
up to $10 million.
Caltex’s Lytton refinery near the Port of Brisbane
is due to re-start partial production Thursday
despite floodwaters reaching the city.
“Full operation of the refinery will be dependent
on Brisbane Port operations, which are currently
suspended due to the flood situation, returning to
normal, ” the company said.
Construction giant Leighton Holdings today joined
the growing list of companies to announce its
businesses would be affected by the floods.
Leighton said in a statement that rain and flooding
since December had impacted its contract mining
activities in Queensland “with varying degrees of
severity”.
“Based on current information some mining
operations have recommenced whilst others
remain on reduced rosters as dewatering
continues, ” the company said.
Construction projects had also been affected,
including Leighton ’s largest infrastructure project,
the $4.1 billion Airport Link in Brisbane, where
work has stopped.
Transport company Asciano also joined the flood
affected-list today, saying extreme rainfall across
Queensland continued to affect coal rail network
availability, resulting in significant speed
restrictions.
The company said that in Queensland, the
Blackwater coal system had closed and the
Goonyella coal system continues to operate well
below capacity.
Excavating and earth moving contractors
Huddy ’s Mining Services revealed today it has
had to cease work at Queensland’s Baralaba mine
because of the worsening floods.
Cockatoo Coal, which owns the Baralaba mine
near Rockhampton in central Queensland,
announced earlier this week it expected
production at the coal mine to be suspended for
several weeks while it removed water and cleans
up the flooded main pit.


Source: Http://www.theaustralian.com.au/business/floods-cost-mounts-more-businesses-hit/story-e6frg8zx-1225986443522