During the first half of 2010 “Kuzbasskaya Toplivnaya Company” has increased coal production volume by 3%

During the first half of 2010 the Company has increased coal production volume by 3% to 2.72 mln. tonnes (H1 2009: 2.64 mln. tonnes), while volume of coal sorted by coal-crushing and screening units increased 48% year-on-year to 1.78 mln. tonnes (H1 2009: 1.20 mln. tonnes), following the growth of demand on foreign and local markets.
Compared to the same period last year in H1 2010 coal sales volume has increased by 15% to 3.52 mln. tonnes (H1 2009: 3.06 mln. tonnes), pushed up by significant growth of export, which has gained 38% year-on-year. Export share in total sales volume increased by 8% year-on-year and amounted to 47% (H1 2009: 39%). The Company’s largest export markets in H1 2010 has been China and South Korea – 63% of Company’s total export sales (H1 2009: 33%), Poland – 26% (H1 2009: 54%), Ukraine – 4% (H1 2009: n/a), Spain – 3% (H1 2009: n/a), Turkey – 2% (H1 2009: n/a) and Czech Republic – 2% (H1 2009: n/a)
In H1 2010 average domestic coal price net of VAT and railroad tariffs (RUB 892 per tonne) has exceeded the result of H1 2009 (RUB 868 per tonne) by 3%. The equal growth of price (3%) has been also stated for Q1 and Q2 of 2010 compared to the same periods last year.
During the first half of 2010 average export coal price has been RUB 923 per tonne, or 18% less compared to the same period last year (H1 2009: RUB 1.122 per tonne). The material year-on-year decrease in export prices is related to the base effect as in Q1 2009 the Company sold coal by the contracts signed in 2008 when the prices were record high, and in Q1 2010 the Company sold coal by the contracts signed in Q4 2009 when the prices were affected by the crisis and decrease in coal consumption.