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China Coal Expects Profit to Slump as Much as 65% on Coal Price

China Coal Energy Co., the nation’s second-biggest coal producer by market value, expects 2013 profit to slump as much as 65 percent because of falling coal prices and government effort to reduce reliance on the fuel.

The company, which posted a 8.84 billion yuan ($1.46 billion) profit in 2012, expects 2013 net income to drop by 55 percent to 65 percent under Chinese accounting rules, according to a Hong Kong stock exchange filing yesterday. It cited the “continuing downturn” in the coal market, a “constant decline” in prices, a slowing economy and changes in China’s energy strategy as reasons.