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“Sales of all coal types have been affected by the market downturn, with the lower quality metallurgical coal bearing the brunt of the weak markets,” the miner said in a statement on Friday October 19.
“A significant amount of this coal is being sold into the thermal market on an energy-adjusted basis, at a price lower than would be achieved if the coal was sold as a metallurgical product,” it added.
The market outlook remains uncertain despite coal production cuts in several countries, a restocking phase in Chinese steel mills, and higher gas prices in the USA, Yancoal said.
On the production front, a total of 4.1 million tonnes of saleable coking and thermal coal was produced during the third quarter of this year, up by 22% from a year earlier.
As coal sales were lower during the September quarter, Yancoal said there is a potential for production rescheduling during the December quarter to mitigate being stock-bound at several of its mines.
Trading house Noble Group has a 13.2% stake in Yancoal.