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Gains at Yanzhou Coal hurt by fall in prices

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Falling coal prices drove down Yanzhou Coal Mining's net profit by 9.3 per cent to 748 million yuan (about HK$700 million) for the year to December 31.

The average price of coal fell 8.8 per cent last year amid a market glut.

The H share is one of a dozen domestic coal miners out of the country's 94 larger players that managed a profit.

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Director Yang Jiachun said the coal price had started to turn around in the second half last year and should rise 15 per cent this year.

The expected growth was due to China's decreasing inventory level, increased domestic demand and consolidation in the global coal-mining industry.

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Buyers are anticipating a decrease in supply.

The mainland consumed 934 million tonnes of coal last year, compared with about 900 million tonnes in 1999.

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