China's Yanzhou Coal sinks into red
Yanzhou Coal Mining, China's fourth largest coal miner, plunged into the red in the first half of the year, as its methods to counteract a fall in coal prices and demand failed. The company downsized staff and cut materials consumption in a bid to reduce its production cost per tonne by around 15% YoY at its domestic mines, and by 24-28% at its overseas mines. Although the company is expecting coal oversupply to remain worldwide, an increasing demand from India will help stabilise prices towards the end of the year.
Yanzhou expects coal oversupply to persist worldwide, but rising demand from some emerging nations will help stabilise prices in the second half. Photo: Reuters