Upgrades pay off at coal mine

Yanzhou Coal Mining's unaudited net profit has risen 19.6 per cent to 445.5 million yuan (about HK$413.8 million) in the first half of the year over the same period last year despite a fall in coal prices.

Executive director Luo Taiyan attributed the profit to expansion in the sales network and production capacity, technological upgrades and government policies.

The company's coal production increased 31.6 per cent to 11.98 million tonnes.

Net sales edged up 3.1 per cent to 1.86 billion yuan.

The domestic price of coal fell 2 per cent due to oversupply whereas the cost of exported coal dropped 3.7 per cent.

Coal exports account for 30 per cent of sales volume and 35 per cent of income.