Aussie floods hit BHP Billiton's coal mining

London-listed BHP Billiton, the world's biggest miner, today warned that flooding would continuing to hit its coal business after Australian cyclones caused production to fall by nearly a fifth in the first three months of this year.

BHP said force majeure, a legal clause releasing companies from contracts because of circumstances beyond their control, remained in place and admitted production and sales were likely to be impacted for the rest of this year.

Its coking coal production fell by 18% from a year earlier in the first quarter of 2011.

Coal - a key ingredient for steel - is in currently huge demand, especially from China, and BHP is the world's largest supplier.

The company added that its iron ore output grew 7% on last year.

BHP said it intends to spend nearly $10 billion (£6.12 billion) of its planned $80 billion investment over the next five years on boosting iron ore and coal mining production.