Yanzhou Coal Mining general manager Wu Xiangqian has admitted that, despite market resurgence, Yancoal Australia is still failing to break even.
The price of coal almost doubled to US$107 in November last year, before settling at US$86 now. However, despite the current strength of the Asian coal market, Yancoal Australia is still failing to break even for the fourth year in a row.
In 2016 Yancoal posted net losses of one billion yuan, in 2015 it was 1.4 billion yuan, and 1.8 billion yuan in 2014.
Wu Xiangqian conceded, “We believe in the not too distant future it will reach break even.”
Yancoal’s $2.5 billion purchase of Rio Tinto’s Australian mining assets is still being considered by shareholders of both companies and official bodies in both countries.