Retailer and coal miner Wesfarmers Ltd (ASX: WES) expects flooding in Queensland state to significantly reduce output at its Curragh coal mine until the March quarter, the company said on Wednesday.

Wesfarmers declared force majeure after extensive rains in December and January shut most of the region's coal mines. Mines have slowly begun to come back to production but the Queensland Resources Council earlier this week estimated that only 15 percent of mines are in full operation.

According to Wesfarmers, "the month of December was affected by record wet weather and major flooding in Central Queensland resulting in significantly reduced coal production. The March 2011 quarter production will be affected by this extreme flood event."

However, coal production for the quarter was 2,380,000 tonnes, 14.3 per cent higher than the previous quarter. Metallurgical coal production increased by 25.4 per cent compared to the previous quarter, as a result of unseasonal wet weather in the September quarter, and improved metallurgical coal yield.

Steaming coal production was 7.7 per cent lower than the previous quarter due to lower steaming coal yield, Wesfarmers said.

At 1.33pm AEDT, shares in Coles supermarket chain owner climbed 67 cents, or 2.05 per cent, at $33.31

With Reuters