Oz Miners Face Two-Month Delay for Apache Gas After Blast

Following the recent explosion at its West Australian gas plant, Apache Corp has announced it will be at least two months before it can resume partial sales.

The cut has led to a shortage of gas supplies to the area's mining and metal refinery industries, causing many companies to urgently seek alternative sources of gas or diesel to minimise the impact on production.

The Western Australian Government has warned of sharply higher fuel costs because of the disruption at the state's biggest gas supplier.

To meet demand, the Australian unit of Royal Dutch Shell has announced it will bring forward a planned diesel import cargo.

BP, which has been producing diesel at maximum levels at its Kwiana refinery near Perth, is also investigating importing additional diesel from other countries.

The two-month delay will come as a blow to the local mining community, which includes companies such as Rio Tinto, BHP Billiton, Newcrest Mining and Ikuka Resources.

Ikuka has already been forced to halt its mineral sands mining operation due to the gas supply interruption.

By Alex Hawkes