Australian mining giant Rio Tinto's coal producing subsidiary Coal & Allied has issued its financial results for the first half of 2010, stating that the company's income in the period in question benefited from the gain on the divestment of two undeveloped Gunnedah Basin coal projects.
According to the financial results, sales revenues decreased 26 percent to AU$929 million (US$845 million) for the first half of 2010 compared to AU$1.25 billion for the first half of 2009.
Net income of AU$498 million (US$455 million) in the first half compares with AU$324 million in the first half of 2009, increasing 54 percent. However, excluding one time divestments, net income fell percent 50 percent to AU$161 million (US$145 million) year on year.
Commenting on the company's performance, Coal & Allied's managing director Bill Champion said, "Coal & Allied's production in the first half of 2010 was unfavourably affected by wet weather and rising overburden strip ratios across our mines; however, our strategy to focus on higher priced semi-soft coking coal led to strong semi-soft coking coal production volumes."