Yanzhou Coal posts strong first-half profit rise

Yanzhou Coal, the listed arm of Yankuang Group, China’s fourth-largest coal miner, said first-half earnings rose by 160% over the same period in 2007, the South China Morning Post reported. The company also said it expected solid second-half results. Net first-half profits in the first six months were US$569.8 million, up from US$219.1 million in the same period a year ago. The company is expected to see full-year profits rise 90% to US$897 million. Yanzhou sells about half of its output on the spot market, which allows the company to fetch higher prices for coal than it could through negotiated contracts with end users. About 40% of Yanzhou’s output this year is expected to be metallurgical coal, which has seen prices double since the start of the year.