On January 27, Australian miner Rio Tinto announced that its thermal and semi-soft coking coal producing subsidiary Coal and Allied recorded a profit after tax of AU$586 million (US$527.48 million) in 2009, compared with AU$804 million in 2008, due to lower revenue attributable to lower realized coal prices. In the year in question, the company's revenue declined by 13 percent year on year, reaching AU$2.31 billion (US$2.09 billion).
Coal and Allied stated that the 20 percent decrease in realized US dollar coal prices compared to 2008 had a negative impact on the sales revenue in 2009. The company also emphasized that the benchmark export coal prices for the 2009-10 Japanese fiscal year decreased by 45 percent for thermal coal and by 65 percent for semi-soft coking coal, both compared to the previous fiscal year.
In 2009, Coal and Allied's total saleable coal production amounted to 25.2 million metric tons, slightly rising by 0.43 percent year on year, while its total shipments decreased by 0.43 percent, reaching 24.98 million metric tons, including 20.76 million metric tons of thermal coal and 4.21 million metric tons of semi-soft coking coal.
Commenting on the 2010 outlook, Coal and Allied's managing director Bill Champion said, "We expect to see markets continue to strengthen in 2010, with thermal coal and semi-soft coking coal demand remaining buoyant."