Australia: Yancoal sees 12% q-o-q fall in ROM coal output in Q1CY’25, advances growth projects despite headwinds

• Q1CY’25 output impacted by planned longwall moves
• 2 more longwall relocations scheduled for later in 2025

Yancoal, an Australian mining company, produced 15.2 million tonnes (mnt) of ROM coal in Q1CY’25, a 12% decline from 17.3 mnt in the previous quarter, largely due to scheduled longwall moves.

Despite weak coal prices driven by global oversupply, soft demand, and ongoing economic uncertainty, Yancoal’s large-scale, low-cost operations continued to provide the company a competitive edge, allowing it to remain resilient across all market conditions. As such, Yancoal was also able to continue with key growth initiatives despite significant market headwinds.

Operational performance

Production in Q1 was slightly lower than expected, due to planned longwall moves at underground mines. Both were completed ahead of schedule, boosting output earlier than forecast. Two more longwall relocations are set for later in the year.

Despite minor weather and maintenance disruptions, most sites performed ahead of plan or quickly recovered.

Highlights are as follows:

• Moolarben: Exceeded expectations post-longwall move; minor delays offset by strong yields and dig rates.
• Mount Thorley Warkworth (MTW): Delivered above-plan saleable coal due to high wash plant feed and improved yields.
• Hunter Valley Operations (HVO): Rebounded from early weather delays with better-than-expected truck utilisation and coal volumes.
• Yarrabee: Met targets early, then closed the quarter with a strong March performance.
• Middlemount: Faced weather issues and processing setbacks; recovery plan in place.
• Ashton: Returned to full operation after early longwall and maintenance work; later issues were resolved quickly.
• Stratford Duralie: Ceased mining in Q2CY’24; closure and rehabilitation underway.

Development & exploration

Yancoal continues to progress several key development and exploration initiatives aimed at supporting long-term production and diversification:

• MTW Underground: Pre-feasibility studies are underway, with a full feasibility study expected to commence in 2025. If approved, the project could significantly extend the mine’s production life without increasing annual output limits.
• HVO Extension: The joint venture is seeking regulatory approval for an 18-month extension of operations within the existing mining lease, with approval expected in the coming weeks.
• Moolarben OC3 Extension: The NSW Department of Planning, Housing, and Infrastructure is reviewing the proposed OC3 Extension, which could add 30 mnt to the mine’s total life-of-mine ROM production, maintaining current annual capacity.
• Stratford Renewable Energy Hub: Feasibility studies and commercial assessments are underway, with internal and external approvals required for project advancement.

These initiatives reflect Yancoal’s commitment to long-term value creation and operational sustainability.

Outlook

With coal prices below the marginal global cost, a supply correction and eventual price recovery are expected. Backed by strong assets and operational resilience, Yancoal remains well positioned to manage the current market challenges.