Devoting to achieve the development target of making Yancoal Australia Ltd. as the energy base. Since the establishment of Yancoal Australia in 2004, persevering in market-oriented operation, development in a standard manner and glocalization management, taking advantage of technology and capital and undertaking 6 significant strategic operations, Yancoal Australia has achieved transformation to a first class international energy company. Especially since 2014, based on the operation principle of “transparency, standardization and high efficiency”, the company has made reforms to original business management model, operation concept and control regime, and thus promoted operational efficiency to handle the weak recovery of global economy and continuous slump of the market, aiming to achieve “rebirth” in the shortest period.

Transforming QTCM and forging a scientific operation mechanism. Sparing no effort to establish a modern enterprise flat management structure and increase efficiency by department deduction and personnel restructuring. On the one hand, the company canceled COO, CMO and HR executive general manager with their functions directly transferred to CEO, thus the CEO can have an immediate understanding of the main operation assets, rapidly master relevant operation trends, which further improved decision making and control efficiency. On the other hand, the company shed redundant employees and recruited competent staff in a scientific way to forge “a cohesive workforce”. Regarding the Chinese expats, the company undertook glocalization management: let them participate in management at all levels and made more communications with foreign staff. Up till now, more than 80 employees have been dismissed and AUD17 million of labor cost has been saved, achieving the synchronous improvement of management and efficiency.

Innovating operation system and mechanism and enhancing business efficiency. Focused on centralized management, the company made clear responsibilities and functions division, realizing unified coordination and resources sharing. Neighboring mines were divided into regions according to the geographic location of each coal mine and 3 regional operation GMs (in NSW, Queensland/WA and Moolarben mine) were appointed. The company undertook unified management of materials purchasing, storage management, projects examination and approval, community relations and long term planning and integrated coordination of mine production processing, operation cost, technical services, electromechanical engineering, employees health and safety, etc .to shorten procedures and improve efficiency. In the mean while, the company carried out regional resources sharing and promoted synergetic development. Reorganizing business and operation support services, HR and technical services, the Company achieved regional sharing of professional technique and resources. By centralized handling important transaction business, such as remuneration payment, accounts receivable and payable, statutory reports, and coal information technical assistance, the synergy of inner resources was maximized.

Strengthening income increase and expenditure reduction to maximize economic benefit. Further amending and improving various management regulations including redundancy policy, reimbursement application of official travelling expense, office supplies purchasing to maximize reducing administrative cost. Establishing coal blending company, strengthening coal blending within the company and coal trade supervision, optimizing coal quality & types and forming 6 key coal products to meet customers’ different requirements and thus setting Yancoal Australia’s brand. Up until now, the sales income has made an increase of AUD535, 000 by coal blending, realizing a double increase of coal value and price. Meanwhile, as Yancoal Australia’s 9 coal mines in production including open cut and underground are located in 3 states, the company took advantage of the large quantity and long period of purchasing of bulk commodity and equipment, undertook open and transparent bidding procurement and signed long-term cooperation agreements with suppliers, thus the purchasing cost was significant lowered. Only for power supply negotiation, benefiting from the bidding procurement of 3 power utilities, the supply cost will be decreased by AUD5.8 million in the next 2 years.