Chinese-owned coal miner Yancoal has announced plans to pursue “aggressive” cost reductions across its Australian sites in 2013.
In a presentation released to the stock exchange Yancoal said the plan would build on previous reductions it made in 2012.
“More cost reductions are planned for 2013 with another 11 per cent expected, taking the total cost cuts from first half 2012 to about 15 per cent for the company,” it said.
Despite some mine closures over the Christmas period, Yancoal said coal production and sales increased in 2012, but lower commodity prices softened performance at the start of the year.
“Coal sales prices for all types declined during the first half and appeared to have reached the low point of the cycle during the second half,” it said.
While it was reserved in its outlook Yancoal said it expected coal prices to gradually increase as the global economy “gathers momentum”.