This follows a reduction of about 5% achieved half-on-half last year. Another 11% is expected this year, taking the total cost cuts from first-half 2012 to about 15% across the company

“Yancoal coal production will be modestly higher in 2013 with growth limited by approvals,” it said in its latest presentation.

“Management will continue to focus on delivering synergies identified during the merger [with Gloucester Coal].”

Following the introduction of the Being Abel program at its Donaldson group of mines in NSW, costs were reduced by over 25% during 2012 with further gains expected in 2013.

Moolarben’s FOB cash costs of $55 per tonne will have a large impact on aggregate costs across the group, the company said.

Yancoal expects Moolarben’s production to be in the 5.1Mt to 5.4Mt range this year.

It anticipates receiving Stage 2 development consent from the Department of Planning and Infrastructure and expects to complete the underground draft feasibility study for the Stage 2 project this year.

ROM coal production from Yancoal’s seven mines in NSW and Queensland has grown strongly by a combination of acquisition and organic growth since 2009, it said.

The merger with Gloucester was effective on June 27, leading to another surge in growth, with ROM coal production reaching 22.2Mt (100% basis) and 19.9Mt (equity basis) for 2012.

Saleable coal production grew in line with ROM output and reached a new record of 14.7Mt (equity basis).

The company has also sought to lock in procurement savings by leveraging greater buying power to reduce costs.

A procurement review has been completed with the plan being progressively implemented.

A number of major supplies have been tendered already, with savings realised and locked in over the contract life, Yancoal said.