From the SMH:
The chief executive of Yancoal Australia says coal prices are falling faster than miners can keep up, as the China-backed coalminer said it would halt expansion and seek broad cost cuts.
Yancoal chief Murray Bailey told analysts today that the economy of Australia’s largest export market, China, had slowed markedly in relation to metallurgical coal, iron ore and steel production, contributing to an oversupply and sharp falls in the price of coal.
“In the second half we expect coal prices to remain both weak and volatile,” he said. “We are looking at all options to reduce costs, especially discretionary costs and consulting costs, and contracting costs across the organisation.”
Yancoal, created via the merger with Gloucester Coal to build Australia’s largest listed coal play, is 78 per cent owned by Yanzhou Coal Mining Company. Yanzhou is in turn is controlled by the Chinese state-owned enterprise Yankuang.
Yancoal operates both thermal and coking coal mines in NSW and QLD. Get ready for more of this. Much more.
