Feb 16 (Reuters) - Yancoal Australia Ltd (YAL) : NEW SOUTH...

Feb 16 (Reuters) - Yancoal Australia Ltd (YAL) :

• NEW SOUTH WALES COAL RESERVATION POLICY
• WAS ADVISED BY NEW SOUTH WALES GOVERNMENT THAT IT INTENDED TO INTRODUCE A PRICE CAP AND COAL RESERVATION POLICY
• COAL SOLD UNDER THIS POLICY IS SUBJECT TO A PRICE CAP OF A$125/TONNE DELIVERED FOR 5,500 KCAL/KG PRODUCTS, ENERGY-ADJUSTED
• REQUIREMENT TO RE-DIRECT COAL INTO DOMESTIC SUPPLY CHAIN PRESENTS SIGNIFICANT LOGISTICAL CHALLENGES
• TO MAKE AVAILABLE UP TO 395,000 TONNES OF COAL PER QUARTER TO DOMESTIC POWER GENERATORS FROM ATTRIBUTABLE SALEABLE PRODUCTION
• WILL CONTINUE ENGAGING WITH THE NSW GOVERNMENT TO ADDRESS ANY UNINTENDED IMPACTS OF THE POLICY
• COMPANY WILL BE IN BETTER POSITION TO EVALUATE LOGISTICAL IMPACTS AFTER OPERATING UNDER POLICY FOR A SUFFICIENT PERIOD
• COMPENSATION MAY BE MADE AVAILABLE IN CERTAIN CIRCUMSTANCES, SUCH AS WHERE COSTS EXCEED CAPPED PRICE OF COA
• TOLD BY NSW GOVERNMENT CO WILL NOT BE COMPENSATED FOR DIFFERENCE BETWEEN MARKET RATES AND PRICE IT GETS SELLING VOLUMES UNDER POLICY
• HAS YET TO SEE FINAL FRAMEWORK GUIDING COMPENSATION AND UNDERSTANDS THIS MAY NOT BE FINALISED FOR SOME WEEKS
• WILL CONTINUE ENGAGING WITH NSW GOVERNMENT ON COMPENSATION THAT COMPANY SHOULD RECEIVE FOR LOSSES INCURRED DUE TO POLICY