Good news for coal mining in Australia. The head of Chinese coal giant Yanzhou is confident the demand for coal from Australia will to build again towards the end of September. The Chinese government continues to support growth, meaning long-term demand and strong prices for coal.
Yancoal Australia, told investors in Sydney there were already signals in China that the economy was picking up, adding that the government was already actively supporting pumping money into their economy. Yancoal was “hitting the button” on projects in Australia and China. In the domestic market, the Chinese economy has picked up slightly and there are signs of increased demand.
“Long term, China will demand coal for energy.”
Chairman of Yancoal, Mr Li said that, despite the recent softening of the thermal coal market, he expected that towards the end of the third quarter Chinese demand would increase.
“From late September, you will see stronger demand and the support of prices will pick up,” he said.
Yanzhou, which has a market capitalisation of $11.6 billion, owns 78 per cent of Yancoal Australia, created via the merger with Gloucester Coal to build Australia’s largest listed coal play.
Mr Li said that as a result of the merger, the parent company had acquired new opportunities to develop in new markets and attract new customers.
He added that Yanzhou was in early talks with Hong Kong trader Noble Group, a major shareholder of Yancoal Australia, about identifying opportunities to improve logistics to maximise sales. This would have the effect of creating new mining jobs in Australia. Visit the Yancoal website for more information on Yancoal mining jobs.
Yancoal chief executive Murray Bailey told investors yesterday that the company was working on its five-year plan and would present it to the board in the fourth quarter.
Links to Yancoal mining operations in Australia.
- Ashton Coal Mine
- Austar Coal Mine
- Donaldson Mines
- Moolarben Coal Mine
- Yarrabee Coal Mine
- Middlemount Mine
- NCIG Coal Terminal
- Wiggins Island Terminal
- LTCC Technology
- Ultra Clean Coal