- Q2 output strong despite port, weather disruptions
- CY’25 output guidance remains unchanged at over 35 mnt
Yancoal Australia delivered a robust operational outcome in the second quarter of 2025, achieving 17 million tonnes (mnt) of run-of-mine (ROM) coal production and 12.3 mnt of saleable coal on a 100% basis.
Attributable saleable coal production reached 9.4 mnt, supported by a 12% quarter-on-quarter (q-o-q) increase in ROM output. This highlights Yancoal’s operational discipline and the effectiveness of its water management investments in minimizing weather-related disruptions.
Temporary sales deferrals due to port closures
Attributable coal sales totalled 8.1 mnt during the quarter, marginally lower than the 8.4 mnt recorded in Q1CY’25. The shortfall between production and sales was primarily due to temporary port closures at Newcastle, caused by adverse weather systems.
These events resulted in the deferral of several scheduled shipments to the third quarter. Despite further closures early in Q3, the company remains confident that the delayed volumes will be delivered within the current quarter.
2025 guidance remains on track
Yancoal has reaffirmed its 2025 guidance for attributable saleable coal production at 35-39 mnt. In the first half of calendar year 2025, the company recorded a 16% year-on-year (y-o-y) increase in ROM coal production, reaching 32.2 mnt compared to 27.9 mnt in the same period of 2024.
Challenging market environment
The global coal market remained subdued in Q2, with thermal and metallurgical coal prices declining due to strong supply, weak demand, and geopolitical uncertainty. Higher domestic output in China reduced imports, while Indonesian and Colombian exports fell amid weather and pricing challenges.
Imports declined in India, Japan, Korea, and Taiwan due to increased domestic energy generation, while Vietnam and parts of Europe saw gains from energy diversification. Metallurgical coal demand stayed weak, though early signs of supply cuts may support a gradual price recovery.
Site-level operational highlights
Yancoal’s assets demonstrated strong operational execution despite widespread weather challenges:
- Moolarben recorded 4% growth in ROM and saleable volumes. Although longwall advancement was affected by hard coal conditions, open-cut operations remained consistent throughout the quarter.
- Mount Thorley Warkworth (MTW) achieved a 13% uplift in ROM production, driven by improved equipment utilisation and rapid post-weather recovery.
- Hunter Valley Operations (HVO) also recorded a 13% increase in ROM output, though saleable coal declined due to early-quarter rainfall and stockpile management adjustments.
- Yarrabee delivered significant q-o-q volume gains despite intermittent weather delays.
- Middlemount began recovering from prior quarter disruptions, with operational focus placed on improving wash plant yields.
- Ashton outperformed forecasts despite geological complexities. Longwall relocation is in progress, with a restart planned for October 2025.
Project developments and exploration
Yancoal continued to advance its development projects during the quarter. The Mount Thorley Warkworth underground project remains in pre-feasibility, with a feasibility study expected in Q1CY’26. At HVO, mine life extension efforts within the current lease area are ongoing, while regulatory review of the Moolarben OC3 Extension Project which could add 30 Mt to ROM output is in progress.
The Stratford Pumped Hydro and Solar Project remains under technical and commercial evaluation. Exploration activities included 14 boreholes at HVO and Moolarben, focusing on structural and coal quality analysis.
Outlook
Yancoal is on track to meet its 2025 targets, driven by strong first-half performance and disciplined operations. While market conditions remain challenging, signs of supply adjustment may support price recovery. The company will focus on optimising sales, controlling costs, and advancing strategic projects to sustain long-term growth.
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