Yancoal Australia Ltd said on Tuesday it expects a rebound in demand for coal-fired electricity generation in 2021 as global economic conditions are set to improve.
Following China’s unofficial ban on coal imports from its major supplier Australia in the second half of 2020, Yancoal has been diversifying its customer base with sales made into India, Pakistan and South America which it intends to widen.
It is believed that China, the world’s biggest coal importer, imposed the ban in retaliation for Canberra’s call for an international probe of the origins of the coronavirus pandemic.
Yancoal, whose largest shareholder is China’s Yanzhou Coal Mining Co Ltd, warned that the influence of weather on both supply and demand along with regional trade settings would likely contribute to uncertainty regarding the direction of coal prices during the first half of 2021.
The company, which has mines and projects in New South Wales and Queensland, on Tuesday posted annual saleable coal production of 38 metric tons, which met its full-year target.
