Collie miner Premier Coal has warned it needs to finalise a new supply deal with Synergy to stay afloat, just weeks after preparing to cut 120 jobs. The company, a subsidiary of Yancoal which is dual-listed on the ASX and in Hong Kong, posted a narrow loss of $770,000 and a $22 million writedown of assets for 2025.
However, the financial report lodged with the corporate regulator warns that Western Australia’s coal outlook has worsened in 2026. The West Australian revealed last month that Premier would be dramatically cutting back its mining workforce in the state’s South West.
Premier’s directors stated that supply and price negotiations with its major customer, Synergy, were ongoing and incomplete. “In addition, the significant reduction offtake volumes nominated by the major customer during the first four months of 2026 has resulted in significant operating cash losses,” the report said.
The directors indicated that an agreement should be reached but warned there was significant doubt as to whether the business could remain financially viable if a deal is not finalised. The State Government hopes to close all of taxpayer-owned Synergy’s coal power stations by 2030. Premier supplies fuel to those generators, which are being switched off through the latter half of the decade.
Adding to the pressure, neighbouring miner Griffin Coal has been in receivership since 2022 after a legal fight with private power station Bluewaters. Taxpayers have so far spent more than $300 million propping up Griffin.
“The future of Premier Coal disappeared in 2022 with the announcement of the closure of the coal fleet,” shadow energy minister Steve Thomas said on Monday. He said “Premier Coal has a right to feel hard done by” given the subsidies for Griffin. Synergy did not respond to a request for comment.
WA is not a major producer of coal, with smaller, higher-cost reserves than the east coast. Premier also revealed it had been hit with a dispute notice late in 2025 by an unnamed customer claiming the company was in breach of a supply agreement. Talks were under way to finalise a new deal with that buyer, with a reduced coal price.
