AFP

SYDNEY — Australia's vast floods are expected to cost the economy around Aus$3 billion ($3 billion) in lost coal exports and farm production, according to the national forecaster.

Major bank ANZ has already warned that the floods -- which devastated the northeastern state of Queensland, wiping out crops and swamping coal mines -- could cost Aus$20 billion in rebuilding efforts.

The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) said the deluge would likely hurt coal exports in resources-rich Queensland by 15 million tonnes.

"This represents a reduction in export earnings of around Aus$2-2.5 billion," on the original forecast for December 2010 and March 2011, it said.

Queensland accounts for 56 percent of Australia's black coal production and 62 percent of the country's coal exports and the disruption to supply caused by the floods would likely result in higher prices, the bureau said.

"Production and sales of thermal and metallurgical coal will be affected because Queensland produces large quantities of both coal types," ABARES said.

"However, it is anticipated that coal prices could be settled at higher levels, partially offsetting the adverse impact on coal industry revenues."

In terms of agriculture, the floods, which have also affected the southeastern states of New South Wales and Victoria, would reduce farm production by at least Aus$500-600 million in 2010-11.

The deluge would have "significant impacts" on fruit and vegetables, cotton, and some winter crops although livestock losses were reportedly small.

"These costs do not take into account the cost of lost farm infrastructure and assets which may amount to much more," ABARES said.