Yancoal Australia experienced a significant surge in its share price, jumping more than 7 per cent in afternoon trading. This increase followed the release of new data indicating that China is accelerating the construction of new coal-fired power stations, despite simultaneously investing heavily in renewable energy sources.
The Centre for Research on Energy and Clean Air and Global Energy Monitor reported that while China’s power sector carbon dioxide emissions decreased for the first time in 2023 due to clean energy deployment, there was a surge in proposals for new and reactivated coal-fired power plants. New and reactivated projects reached a record 161 gigawatts in 2023. Furthermore, China commissioned 78 gigawatts of new coal capacity, exceeding India’s net additions between 2015 and 2024, despite India operating the world’s second-largest coal fleet.
Yancoal was last trading up 7.4 per cent, nearing its 52-week high. Yancoal Australia is a coal mining company focused on producing and exporting thermal and metallurgical coal. Its major shareholder, China’s Yankuang Energy Group, also saw a substantial increase, jumping 10 per cent. The CSI SWS Coal Index rose 5.7 per cent amid the news.
