Workers at the BHP Billiton operated Port Kembla coal terminal in Australia launched a week long strike on Wednesday, action which could halt the terminal's coal and coke exports.

About 100 Construction Forestry Mining and Energy Union (CFMEU) workers are striking to protest against the Port Corporation's proposal to reduce the number of employees covered by the union agreement,

Mr Bob Timbs a union spokesman said “The strike action is not about the remuneration.”

The union is asking for a 4.5% raise and the port has offered a 4.3% increase.

According to the Port Kembla Port Corporation, Port Kembla exports around 10 million tonnes of coal and coke per year. The terminal, which is managed by BHP Billiton Ltd, exports coking and thermal coal from the Southern and Western coalfields of New South Wales state for BHP, Peabody Energy Corp, Banpu PCL, Gujarat NRE Coking Coal Ltd and Xstrata PLC.

The strike at the small port in New South Wales state may provide some support to weak metallurgical coal prices, but prices are more likely to get a boost if strike action resumes at BHP Billiton-Mistubishi Alliance's seven mines in Queensland state.

(Sourced from Reuters)