25 Apr 2018
Chinese Yancoal's Australian thermal coal sales surged year on year in the January-March quarter following the second full quarter of output from the Coal & Allied assets it purchased from Rio Tinto last year.
But volumes were down from the October-December period, the company's quarterly results showed late Friday.
Yancoal's equity share of thermal coal sales from its Australian mines was 6.97 million mt, up by 123% year on year from 3.12 million mt, but down by 14% from the December quarter, the results showed.
Yancoal bought the New South Wales-based Hunter Valley Operations and Mount Thorley Warkworth mines from Rio Tinto on September 1 last year for a total consideration of $2.69 billion.
Hunter Valley Operations, which Yancoal has 51% ownership of in a proposed joint venture with Glencore, produced 2.89 million mt in the March quarter, down from 3.44 million mt in the December quarter.
Mount Thorley Warkworth -- which on March 7, Yancoal purchased Mitsubishi Development's 28.898% interest in the Warkworth joint venture to take its own share of coal production from the integrated Mount Thorley Warkworth operations from 64.1% to 82.9% -- saw total production of 3.05 million mt in the quarter, up by 12% from 2.73 million mt in the October-December period.
Yancoal, which is now Australia's largest independent coal producer, earlier in the year gave 2018 total coal production guidance of 35 million to 37 million mt.