Shaanxi Coal and Chemical to cut coal output by 16 mln T in 2015

Published: Feb 03,2015 08:01:21


Shaanxi Coal and Chemical Industry Group, one leading coal producer in northwestern China’s Shaanxi province, planned to cut coal production by 16 million tonnes in 2015, said the company in a meeting on January 15.


The company planned to produce 111 million tonnes of coal this year, down 12.6% from the output in 2014, which dipped 0.47% from 2013 to 127 million tonnes, the company said.


This output cut, partly in response to the government’s directive to address domestic oversupply, may come mainly from mines with uncompetitive coal quality and higher cost, industry sources said.


The cost of the company is likely to increase slightly this year, after the coal resource tax was changed to value-based with a rate of 6.1% from the start of the year.


Over the past year, the company realized revenue of 176.6 billion yuan ($28.26 billion), increasing 17% year on year. However, total profit during the same period plunged 59.4% year on year to 560 million yuan, the company said.


Shaanxi Coal and Chemical, the third-largest listed coal miner by volume in China, has been suffering from falling profit for the past two years, mainly due to falling coal prices and sluggish demand. Total profit dropped 45.67% year on year to 3.486 billion yuan in 2013.


The company aimed to realize revenue of 190 billion yuan in 2015, with profit of 500 million yuan.




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