Citing market challenges, Yancoal Australia Ltd. said May 2 that it placed itsDonaldson coaloperations in New South Wales, Australia, on care and maintenance, a monthearlier than anticipated.

In March, the Yanzhou Coal Mining Co. Ltd. subsidiary said it wasaiming to idle the mine in June due to tough market conditions.

The move follows a halt in mining activities at the Abelunderground mine and the start of new feasibility studies that will considerthe future development of new underground working areas.

Most employees at Donaldson have been redeployed to theneighboring Austar and Ashton underground operations, Yancoal said.

According to a recent report by The Australian, Yancoal Australia was for 's A$1 billionMoranbah coalmine in Queensland, Australia.