Hohhot City, China-based coking coal producer China Energy Corporation announced on June 23 that it anticipates reporting between $17 million and $18 million in net income for its fiscal year ending November 30, 2010. This would represent at least a 233 percent increase in net income as compared to the previous fiscal year.
The company expects to produce an aggregate of approximately 800,000 metric tons of coal for the fiscal year ending November 30, 2010. China Energy produced approximately 156,000 metric tons of coal in the first quarter of 2010 with an average sales price of $37/mt, the company said, adding that the average sales price for coal was $43/mt in May this year.
A $10 million expansion and improvement program completed in Q3 2009 at the LaiYeGou coal mine in Inner Mongolia has resulted in a significant rise in production, China Energy Corporation said.
WenXiang Ding, chief executive officer and president, also stressed that the company is seeking acquisition opportunities, stating, "We are also well positioned to expand our production and distribution capabilities through potential acquisition opportunities leveraging the rich coal resources in Inner Mongolia."