The study comes as Yancoal continues to seek growth in production from its existing assets through expansion and optimisation.
"At Mount Thorley Warkworth, Yancoal in its capacity as the operator, has identified a coal resource that could support an underground operation.
"The initial concept study shows a potential production output of 6 million tonnes per annum of run-of-mine coal."
In the March quarter, MTW reported 3.6Mt of RoM coal, which was 22% down on the previous corresponding period.
"At MTW wet weather restricted mining activity during the March quarter," Yancoal said.
"The impact was compounded by increased truck tyre damage, due to operating in the wet conditions, resulting in reduced availability.
"Saleable coal production was temporarily affected by the reduction in mining activity."
