YANCOAL AUS Shares Climb Nearly 3% in Late Trading on Report of New South Wales Ban on New Coal Mines

Stock News
Mar 20

YANCOAL AUS (03668) saw its shares rise nearly 3% in late trading. At the time of writing, the stock was up 2.6%, trading at HK$47.32, with a turnover of HK$222 million. The movement follows reports that New South Wales, Australia's second-largest coal-producing state, will prohibit new coal mine projects. The state government stated in a declaration on Thursday that it will not approve so-called "greenfield" coal mine projects, a move aimed at reducing emissions and achieving its net-zero targets. This ban will not impact existing coal mines or their expansion projects. Major coal mining companies in the state include Glencore, YANCOAL AUS, and Whitehaven Coal. Guosheng Securities released a research note indicating that production cuts in Indonesia have established a foundation for rising international coal prices. Additionally, conflicts between the US and Iran have led to a surge in demand for coal as a substitute for oil and gas, reinforcing the upward trend and accelerating the pace of price increases. With the continued closure of the Strait of Hormuz, diesel supplies in some countries may face shortages. This situation is expected to significantly increase fuel costs per ton of coal at mines. More importantly, it could lead to involuntary production cuts or even shutdowns at some mines due to diesel shortages, further tightening global coal supply and intensifying the supply-demand imbalance.

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