Yancoal gets green light for massive expansion at Australian mine
Australia’s Queensland Government has approved Yancoal Australia’s (ASX: YAL) planned expansion of its Cameby Downs thermal coal mine, located in the Surat Basin, about 360km northwest of Brisbane.
The project will allow Yancoal to increase output at the mine from 2.8 million tonnes a year to 3.5 million, said the company, which manages Cameby Downs.
It will also extend the productive life of the mining complex, consisting of an open cut thermal coal mine, coal handling and preparation plant (CHPP) and related infrastructure to 75 years from 45.
“This is a vote of confidence by Yancoal in Queensland’s world-class resources, our infrastructure and our skilled resources workforce,” Mines Minister, Anthony Lynham, said in a statement.
Production ramp-up at the mine, which began operations in 2010, will start immediately, with peak production expected to be achieved within 12 months.
Yancoal is Australia’s largest pure-play coal miner. It operates or manages nine coal mines across New South Wales, Queensland and Western Australia, employing about 3,000 people plus contractors and other service providers.
In Queensland it operates Yarrabee and manages Cameby Downs. It is also a joint venture partner in the Middlemount coal mine near Emerald.
In February, the miner reported a more than four-fold rise in 2018 underlying net profit, thanks to strong coal prices.
The company’s net profit before one-off items surged to A$868 million (about $622m) from A$211 million a year earlier. Yancoal’s market capitalization stands at $4.07B.