The company recently double its 2007 coal price. The price of coking coal was raised from RMB 1,037 to RMB 1,422 per ton, while rich-coke coal went from RMB 1,101 to RMB 1,486 per ton and lean clean coal rose from RMB 770 to RMB 1,070 per ton. Prices are expected to rise further by the end of 2008.

The company's coal yield and sales have slightly increased from a year earlier with the same basic costs, said some analysts, leading to a 100% increase in net profit for 2008.

In July 2008, the Kewa railway will be completed, connecting the company's Xingxian coal mine to the main railway lines, thus reducing transportation cost. In addition, the Xingxian coal mine will increase its annual yield to 25 mln tons in 2010, a 56% increase from the current 16 mln tons.

Source: Shanghai Securities News

Date: 3 Jul 2008

CN01/NW/MZ/AR/MM