This compares with a loss of $353.5 million after income tax in 2014 for the company. Operating EBIT was a loss of $200.8 million.

Yancoal responded to the sustained global market constraints via the maximising of blending

opportunities, continued restructure of its underground mines, consolidation of back office and shared services, and management of existing take or pay arrangements.

Yancoal CEO Reinhold Schmidt said: “Yancoal continues to implement operational efficiencies and cost savings to address the increasing headwinds of a challenging market, while remaining committed to its investment within the Australian resources sector.

“Via the restructuring of our undergrounds and continued improvement in fleet efficiencies and overburden management at our open cuts, we have achieved significant cost savings on the year prior and met our forecast production targets.

“With the ongoing support of our major shareholders, we continue to progress the development of the low cost, high quality Moolarben asset, while developing new blending opportunities across our New South Wales mines to maximise yields.

“Moving forward, we remain focused on new market growth strategies and the development of our existing brownfield project pipeline.”

The loss for 2015 reflects the continued impacts of low thermal and metallurgical coal prices throughout the reporting period, with opportunities for price improvement increasingly limited by the global market’s prolonged oversupply, according to the company.

“In response to the negative impacts of the continued downturn, Yancoal restructured its Austar and Abel underground mines and transitioned the Stratford Duralie open cut operation from a contractor-operator model to owner-operated,” it said.

“The resulting changes in operations enabled Yancoal to implement significant cost management efficiencies and improved production rates for all three mines throughout the second half of the year.”

Under Yancoal’s regional operating model, sites continued to share systems and processes, while implementing employee and staff training to support the core principles of the company’s “Yancoal Way” culture of safety, integrity, excellence, and innovation.

Metallurgical and thermal coal market prices are expected to remain low for the year ahead, with cost reductions across operations remaining a priority.

In 2016, Yancoal continues to develop its pipeline of major projects, subject to market conditions, while progressing the next phases of the development of the Moolarben complex.

The company is predicting saleable production of 13.5 million tonnes in 2016 and the forecast for 2016 capital expenditure is around $350 million.