Macarthur Coal (ASX:MCC) Sales Lifted Sharply by Chinese Buyers
Perth, Aug 26, 2009 AEST (ABN Newswire) - China has become a major coal buyer for Australian miner Macarthur Coal Ltd (ASX:MCC) due to weaker demand from its traditional customers such as Japan, Korea and Taiwan.
Macarthur Coal has reported a 131.9 per cent lift in annual profit, underpinned by higher coal sale prices. Macarthur Coal's net profit for the year to June 30 was A$168.558 million, up from A$72.684 million a year earlier. Sales revenue rose 73.8 per cent to A$695.4 million.
As demand from traditional buyers like Japan, Taiwan and Korea sagged in the second half, Macarthur started selling material to Chinese buyers for the first time and Hollows said "nontraditional" buyers accounted for 55% of sales in the second half of fiscal 2009 ended June 30.
Chief Executive Nicole Hollows said she sees positive signs for a recovery in demand for the company's pulverized, or PCI, coal.
Hollows said China was providing an important market in the short term and would also be a market for output from Macarthur's future expansions.
Traditional buyers of Macarthur's low volatile coal are now recovering, she said, and a positive sign is that spot prices for metallurgical coals are now above contract prices.
Major shareholders of Macarthur Coal include CITIC Group, ArcelorMittal (NYSE:MT) and POSCO (SEO:005490), holding a total of 47% interest in the company.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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