Poor prices of coal in the world market spurred by a continuing weak demand from the Asian market had prompted China-backed Yancoal Australia to suspend its expansion plans in all its seven mines in Australia.

"Expansion plans across all mines will be reviewed and ranked to ensure that the appropriate capital expenditure discipline is maintained," the company said on Monday in a slideshow presentation posted on the Australian Securities Exchange.

"Yancoal is considering all options to reduce costs," it added, noting that prices of metallurgical coal has been dropping since mid-2011 on falling demand from several major consuming countries.

"It's very difficult for companies to make decisions as rapidly as the prices have moved." Yancoal Australia chief Murray Bailey told analysts.

The company likewise pointed out it expects prices of the metallurgical coal used in steelmaking to remain weak and volatile.

Yancoal Australia, formed through Yanzhou Coal Mining Co.'s takeover of Gloucester Coal, is currently the biggest Chinese-controlled entity listed on the Australian Stock Exchange. Yanzhou Coal Mining Co. is one of China's largest international mining groups by market capitalization. It maintains 78 per cent of the Australian entity.

Yancoal Australia maintains five mines in New South Wales state and two mines in Queensland state.