Yanzhou Coal Slides, Leads Coal Stocks Lower on Resource Tax

Yanzhou Coal Mining Co. led declines by coal producers after the government announced higher resource taxes on coking coal.

Yanzhou Coal, China’s fourth-biggest coal producer, lost 3 percent to 28.37 yuan as of 11:09 a.m. Shanghai time, set for its biggest drop since Sept. 19. Yangquan Coal Industry Group Co. retreated 5.9 percent to 22.60 yuan.

On a volume basis, China will levy a tax of 8 yuan to 20 yuan on every metric ton of coking coal sold starting next month, the government said on its website. The tax on coking coal is 8 yuan a ton currently, according to Anna Yu, a Hong Kong based energy analyst with ICBC International Research Ltd. Coking coal is an ingredient used in steel-making.

To contact the editor responsible for this story: Allen Wan at awan3@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.