Bloomberg News

Yanzhou Coal Slides, Leads Coal Stocks Lower on Resource Tax

October 10, 2011

Oct. 11 (Bloomberg) -- 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


Coke's Big Fat Problem
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus