Yanzhou Coal produces low-sulphur coal from its Shandong mines for sale to electric-power plants and other users in East Asia. A recent report from Core Pacific-Yamaichi placed an 'accumulate' recommendation on Yanzhou's stock. Core Pacific said it expected the acquisition of the Jining III mine and transportation rail networks, which will link the company's mines, to consolidate Yanzhou's core business in the coming years. Both assets were purchased from Yanzhou's parent, Yanzhou Mining (Group). Yanzhou also benefits from the Chinese Government's regulation of the coal industry, which stabilises coal prices by balancing supply and demand. The report highlighted Yanzhou's successful use of the stock market to raise funds: '[Share] placements not only provided cheap funding sources for the counter, [they] also increased the net asset value of the company.' By cutting transport costs, Core Pacific estimates the group will increase earnings by about 8 per cent this year. Graphic: NOW03gwz