Executive defends industry and rising prices as Yanzhou Coal's net soars 127pc
Rising coal prices are not generating obscene profit levels for producers and complaints by power companies about soaring costs are unfair, according to a Yanzhou Coal Mining official.
Wu Yuxiang, the chief financial officer of the mainland's largest listed coal producer, also said power companies had been supported by the central government's 'unreasonably favourable' industry policies.
'Coal prices have traditionally risen less than those of electricity ... the coal industry has been suffering from losses for years and its profitability definitely has not reached obscene levels,' Mr Wu said.
'Power companies are not losing money. They are merely witnessing a fall in profits,' he said at a post-annual results press conference.
He also said the power industry could afford to pay its workers much higher wages than those of coal miners.