Yancoal said it would be open to diversifying into other minerals, energy or renewable energy projects if suitable opportunities arose.
Announcing a bumper first half of 2022, in which Yancoal generated record cashflow of $2.8 billion, the coal miner said it maintained an open book when it comes to mergers and acquisitions (M&As).
“Yancoal continually examines opportunities to grow the business,” the company said in its quarterly report. “The company is open to expanding or extending the operational profile of its existing assets with organic projects, like those identified at Moolarben.
“It would also consider acquiring additional coal assets or diversifying into other minerals, energy or renewable energy projects should suitable opportunities arise.”
Yancoal said it had received the approvals required to increase open-cut run-of-mine (ROM) production at its Moolarben operations in New South Wales from 14 million tonnes per annum (Mtpa) to 16Mtpa.
But the company said it still needed to complete studies before the expansion could occur.
“Studies under review incorporate work to assess the optimal production profile and address the various licensing requirements (of the Moolarben expansion),” the company said.
“Yancoal’s ability to increase open-cut production depends on increasing the capacity at the coal handling and preparation plant (CHPP). This CHPP project is underway and the expansion to 16Mtpa will occur over the next 12 months.”
Yancoal enjoyed a realised sales price of $368 per tonne in the June quarter, up from $258 per tonne in the previous quarter and significantly higher than the $101 per tonne price achieved in the June quarter of 2021.
The company has made its intentions about potential non-coal M&As known in the past, with a similar statement made in prior quarterly reports.
While the latest statement might appear to be a rinse-and-repeat, there remains a question as to where Yancoal’s business interests will lie when the world moves on from coal down the track.