The Yancoal share price just rocketed to new 52-week highs. Here's why

The Yancoal share price is within a whisker of hitting new all-time highs on Monday. But why?

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A coal miner wearing a red hard hat holds a piece of coal up and gives the thumbs up sign in his other hand

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The Yancoal Australia Ltd (ASX: YAL) share price is burning bright today.

Shares in the All Ordinaries Index (ASX: XAO) coal stock closed on Friday trading for $6.62. In early afternoon trade on Monday, those same shares are swapping hands for $6.90, up 4.2%.

For some context, the All Ords is down 0.4% at this same time.

As you can see on the chart above, today's leap higher puts the coal mining stock up a whopping 46% over 12 months. and that doesn't include the 69.5 cents a share in fully franked dividends paid out over the year.

This also marks a new 52-week high for the All Ords coal share, and puts it within a whisker of setting new all-time highs.

Here's what's spurring investor interest today.

Why is the Yancoal share price surging on Monday?

The Yancoal share price is joining in with the broader rally in ASX coal stocks today.

As we reported here earlier, investors are snapping up shares in the big Aussie coal producers after Anglo American (LSE: AAL) was forced to halt production at its Grosvenor coking coal mine in Queensland following an underground fire over the weekend.

ASX coal shares look to be benefiting after Anglo reported it would likely be several months before coal mining at Grosvenor could be resumed. Some industry insiders believe that estimate may be optimistic.

The mine was forecast to produce around 3.5 million tonnes of coal over the full 2024 calendar year. Second-half production now remains in doubt.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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