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Raspadskaya Coal Output Extends Advance, Price Slides

OAO Raspadskaya (RASP), Russia’s largest producer of coal used in steelmaking, raised production for a second straight quarter and almost doubled exports on Chinese demand.

Raw coal production rose 21 percent in the second quarter to 2.28 million metric tons compared with the previous three months, the Moscow-based company said in an e-mailed statement. Washed coal sales advanced 30 percent to 1.69 million tons, of which 641,000 tons were sold abroad.

The company aims for this year’s sales to “come near” those of 2008, Chief Executive Officer Gennady Kozovoy said in today’s statement. Revenue plummeted in the fourth quarter last year after steel demand collapsed.

A recovery in sales, boosted by trader contracts to ship Raspadskaya’s coal to China, failed to increase prices. The weighted average price for high-grade washed coal slipped 2 percent to $46.20 a ton in the second quarter, compared with the previous three months, the company said.

Washed coal sold for a weighted average of $189.10 a ton in the first half of 2008.

Raspadskaya is 40 percent-owned by management and 40 percent by Evraz Group SA, Russia’s second-largest steelmaker.

To contact the reporters on this story: Yuriy Humber in Moscow at yhumber@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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