Mongolian Mining Swings to Full-Year Loss as Coal Prices Fall
MMC’s average selling price for its washed hard coking coal, used by steelmakers, fell 30 percent to $108 a metric ton, even as it sold 17 percent more coal. The net loss was $2.5 million in the 12 months ended Dec. 31, compared with a profit of $119.1 million a year earlier, the Ulan Bator-based company said today in a statement. Revenue dropped 13 percent to $474.5 million.
“The apparent consumption of coking coal in China has fallen in line with the slower growth of steel production and the de-stocking and reduction of inventory levels by coke and steel producers,” the company said.
MMC, which accounted for about 27 percent of the nation’s coal exports, said inventories in China had returned to normal levels from the fourth quarter of 2012, and “re-stocking activities are expected to positively influence coking coal prices in the short-term.”
To contact the reporter on this story: Michelle Yun in Hong Kong at firstname.lastname@example.org
To contact the editor responsible for this story: Jason Rogers at email@example.com