Yancoal production dampened by NSW floods


Image: Yancoal.

Yancoal has suffered a fall in coal production due to rain and flooding at its Hunter Valley mines in New South Wales.

Its coal production in the March quarter was down 17 per cent from the previous period at 14.3 million tonnes of run of mine coal.

Saleable coal production was also down 5 per cent from the previous quarter at 8.7 million tonnes.

The company is hoping to pick up its performance in the next three quarters to reach its unchanged production guidance of around 39 million tonnes of saleable coal.

Yancoal chief executive David Moult said the company was continuing to assess the flooding impacts at its New South Wales mines.

“Heavy rainfall associated with the La Niña weather cycle disrupted mining, rail and port activity during the period with 8.7 million tonnes of attributable saleable coal produced during the period compared to 9.7 million tonnes in the PCP (previous corresponding period),” he said.

“Our three large, open-cut mines in the New South Wales continue to assess the flooding impacts and establish recovery plans.”

The Yancoal mines impacted by wet weather included the Moolarben, Mount Thorley Warkworth, Hunter Valley Operations and Stratford-Duralie mines.

Mount Thorley Warkworth, Hunter Valley Operations and Stratford-Duralie mines all suffered flooding which led to a temporary mine suspension.

Yancoal also flagged that coal transport by rail through the Hunter Valley and coal shipments across New South Wales were impacted.

“Yancoal factors in some wet weather disruptions; we have sufficient rail and port allocations to meet our 2021 targets and are working to deliver the target production volume for the year,” the company stated.

It added that thermal coal prices in the quarter rose due to the floods and winter demand in Asia.

“In 2021, we expect a recovery of global economic conditions and the associated demand for electricity generation to sustain thermal coal indices,” Yancoal stated.

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