News: Yancoal Australia to cut coal output amid price slump

MELBOURNE, March 2 (Reuters) - China's Yancoal Australia (YAL), which reported big losses over the past three years, said on Wednesday it would suspend its Donaldson coal operation as it expects coal prices to remain weak for some time due to a supply glut.

Yancoal, which is 78 percent owned by Yanzhou Coal Mining Co <600188.SS>, produced 1.34 million tonnes of thermal and semi-soft coking coal at Donaldson last year, making up about 9 percent of the miner's total saleable output in 2015.

The shut down will result in the loss of 92 jobs. "The move to care and maintenance is in response to ongoing global market challenges as the operation considers the future development of new underground working areas," Yancoal said in a statement to the Australian stock exchange.

Yancoal on Monday reported a loss of A$291.2 million ($208.94 million) for 2015, an improvement on its loss of A$353.5 million a year earlier, aided by cost cuts and higher production rates.

It warned on Monday that it expected metallurgical and thermal coal prices to remain low in 2016 and flagged its production would fall to 13.5 million tonnes this year from 15.26 million in 2015.

The lower outlook for 2016 had taken into account the prospect that Donaldson may be put on care and maintenance, a spokesman said.

($1 = 1.3937 Australian dollars)