The devastating floods in the Australian state of Queensland are expected to result in millions of dollars in losses for the coal industry.

The Queensland Resources Council says mines in the central part of the state have been inundated with water from the heavy rains, causing a halt in coal production.

The council's chief executive, Michael Roche says the export of coal to countries in Asia and Europe is also being delayed due to damage caused to railways linking mines to the state's shipping ports.

"In the northern Bowen basin, you had the combination of rain impacts on the mines, but also the main railway line through into the ports near Mackay were out of action for a bit over a week so that's a week's lost exports and that's counted in the hundreds of millions of dollars."

Queensland's premier Anna Bligh says the floods will have a long term effect on the state's coal industry.

"We have three quarters of our coal fields unable to operate and unable to supply markets. There's likely to be a significant long term effect from that, not only nationally but internationally," she told ABC's 7.30 Report.

"Queensland supplies half of the world coking coal needed in steel manufacture so there is a remarkable problem out there."

"The mining companies and the mining communities are playing their role in trying to help the recovery effort....but they will have a long slow climb back into production."

Australia is the world's largest coal exporter and the state of Queensland is the main supplier of this valuable commodity.

The Australian Coal Association says the nation supplies more than 30 countries across the world with its biggest markets being Japan and South Korea.

Australia also supplies coal to Taiwan, China, India and Europe.

The flooding crisis has resulted in a number Australian coal mining companies, including Rio Tinto, BHP Billiton, Anglo American and Xstrata, implementing force majeure clauses contained in their delivery contracts.

This measure allows firms to forgo contractual delivery requirements due to circumstances beyond their control such as in the event of natural disasters like torrential rain, cyclones or earthquakes.

Russell Trood, Liberal Senator for Queensland and Deputy Chairman of the Senate Foreign Affairs Defence and Trade Committee says the action taken by these mining companies demonstrate how serious the situation is's.

"Most companies that have long term contracts, all of our supply contracts in the region are long term, try to avoid any interruption in supply, so when a company declares force a..it is really a reflection of the seriousness of the particular problem that they're facing," he said.

Queensland Resources Council chief executive Michael Roche says while the industry's clients have expressed concerned, they also have been understanding as the floods have received widespread international media coverage.

He says while other coal company producing companies may benefit, Australia's supply is crucial to the international economy

Global Commodities Specialist, Macquaire Commodities Research is predicting increases in the prices of coal from $US246 dollars a tonne to $US300 dollars a tonne.

It says this could be reflected in the next round of quarterly export contracts.

Macquaire Commodities Research says a limited availability of coal could also generate a steel shortage, and a strong increase in the price of steel.