Yancoal Australia Renews Framework Agreements for Coal Sales to Chinese Firms

MT Newswires Live
6 hours ago

Yancoal Australia (ASX:YAL, HKG:3668) renewed its framework agreements for coal sales with Yankuang Energy and YIT, according to a late Tuesday Australian bourse filing.

The firm entered into a framework agreement with Yankuang Energy, under which the Yancoal group agreed to continue to sell coal to Yankuang Energy and/or their units, excluding the Yancoal group, as well as a framework agreement with YIT, under which Yancoal agreed to continue to sell coal to YIT and/or its associates, excluding the Yankuang Energy Group.

Both framework agreements are for the period Nov. 1 to Dec. 31, per the filing. The sale price for the coal will be based on industry index prices, coal quality characteristics, and market alternatives to optimize value to the firm.

Yankuang Energy is a controlling shareholder of Yancoal Australia, holding around 62.26% of its total issued shares. YIT is a wholly-owned unit of Shandong Energy, the controlling shareholder of Yankuang Energy.

Yancoal plans to subsequently renew the agreements for three years from Jan. 1, 2027, to Dec. 31, 2029.

Yancoal Australia's shares fell past 1% in recent trading on Wednesday.

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