Yancoal Australia extends coal freight services agreement with connected party Wubo

Yancoal Australia Ltd. announced a new framework agreement for coal freight services with Wubo Technology Co., Ltd. Wubo is a connected person through Yancoal's controlling shareholder, Yankuang Energy.

The 2026 Wubo Framework Agreement, effective from January 1, 2026, to December 31, 2026, and automatically renewable thereafter, will see Wubo provide coal freight services to the group. The maximum annual transaction amount payable by Yancoal to Wubo for these services will not exceed $23 million. This cap was determined based on expected sales opportunities and additional spot demand.

The agreement aims to support Yancoal's strategy to expand its coal sales on a Cost and Freight (CFR) basis, complementing its predominantly Free on Board (FOB) sales. Freight rates under the agreement will be determined through a competitive tender process involving at least two independent third-party bidders to ensure arm's length terms. The company's directors confirmed the terms are fair and reasonable, and in the best interests of the company and its shareholders.