Yancoal Australia Ltd. (YAL), the third- biggest standalone coal producer in Australia, expects the market for the fuel to stay depressed for months after price slides last quarter.
“Both thermal and metallurgical coal markets have deteriorated during the last quarter and Yancoal does not see any signs of improvement in the next few months,” the Sydney- based company, which began trading on the Australian stock exchange last month following the takeover of Gloucester Coal Ltd., said today in a statement.
Rio Tinto Group, the world’s third-biggest mining company, yesterday said it plans to cut jobs at one of its thermal coal mines in Australia to reduce costs amid falling prices. Thermal coal, used to generate electricity, has declined 21 percent this year.
Yancoal reported total thermal coal sales of 1.9 million metric tons during the three months to June 30, 29 percent higher than last year, and coking coal sales of 2.1 million tons, up 25 percent.
“Sales of thermal coal have held up despite a significant fall in the spot price during the quarter,” the company said, adding there was currently an oversupply of coking coal in Asia.
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