Yancoal’s Donaldson coal to shut down

Yancoal’s Donaldson coal operation will go into care and maintenance from June this year, which will result in 92 redundancies.

An announcement from the Chinese miner said one of three mining units at the Abel coal mine would be shut down from March 14.

The move will immediately affect ten roles, which the company will endeavour to redeploy in the Ashton coal mine.

A round of voluntary redundancies will commence at the Abel, Ashton and Austar mines prior to the change in operations.

Donaldson currently employs 103 people, which will be reduced to eleven employees to keep the mine on care and maintenance.

Care and maintenance will include the ongoing rehabilitation of the Donaldson site and management below ground in anticipation of future mining operations.

The Abel mine produced 1.34 million tonnes of salable thermal and soft-coking coal in 2015.

Yancoal recently secured a $1.32 billion debt financing deal in exchange for handing over control of the Ashton, Austar and Donaldson mines to a Chinese consortium.

Yancoal’s full year loss for 2015 was reported as $291.2 million.

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