The following statement is from Yancoal's 2016 Annual Report:
Yancoal’s operations overcame tough market and operating conditions in the first half of 2016, to finish the year with a robust result driven by mine site improvements and the continued success of our tier one Moolarben complex.
These significant achievements demonstrate the capabilities and experience of our operational and project teams as they work together to forge the next stage in Yancoal’s expansion.
With market prices having improved significantly in the second half of the year, Yancoal was well prepared to rapidly respond to new marketing and sales opportunities.
Our operations ramping up where required to meet customer demand and maximising blending opportunities across our NSW sites to make the most of sales in both established and emerging markets.
At a project level, development of the Moolarben Stage Two project achieved a series of critical milestones throughout the year on time and on budget.
The new Moolarben underground commenced producing development coal in April and remains on target for the ramp up to full longwall production in late 2017.
Stage Two development activity also included the opening of the box cut for the new open cut mine in July and preparations for a major recruitment campaign to launch in mid 2017.
At the beginning of the year we restructured the Company to secure necessary debt-funding, transferring control of the underground mines of Ashton, Austar and Donaldson to new fully-owned subsidiary, Watagan.
Under long term contracts to provide management, marketing, infrastructure and corporate support services to Watagan, we continue to ensure the mines are working to the highest legislative and safety standards.
All operations remain steadfast in their commitment to never compromising safety and continue to implement ongoing safety training, site improvements and workplace strategies to address potential hazards.
There are no shortcuts when considering the safety of the men and women directly responsible every day for helping ensure Yancoal’s success.
Throughout the past three years Yancoal has efficiently restructured its operations, reduced costs and established itself as a leading coal producer committed to investing in the Australian resources sector.
For the year ahead we are focused on growing our market share and continuing to build on an established history of quality product, certainty of delivery and strategic acquisitions.
As announced 24 January 2017, the proposed acquisition of 100 percent of the shares in Coal & Allied represents an opportunity to significantly expand Yancoal’s operational portfolio, providing Yancoal shareholders with exposure to world class thermal and semi-soft coking coal mines.
Post transaction, Yancoal will be the largest pure-play coal producer in Australia, with the ability to realise ongoing value from its combined low operating cost portfolio.
This is an exciting opportunity for Yancoal and we look forward to continuing to work with all stakeholders as we grow our operations.
Chief Executive Officer