| Thu 14 Oct 2004, 16:42 | | Anglo Coal expects strong results |
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Anglo Coal expects strong results
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Anglo Coal, a wholly-owned subsidiary of Anglo American (Anglo, AGL), expects that its earnings for the
second half of its 2004 financial year will be higher than its first half, the group says in a presentation published on the Anglo website.
In the interim period to June 2004, Anglo Coal generated US$280 million in earnings before interest tax depreciation and amortisation (EBITDA).
The group also contributed 11% to the Anglo group`s interim headline earnings of $1.304 billion.
Anglo Coal has coal mining operations in Australia, South Africa and South America.
Looking ahead to the 2005 financial year, Anglo Coal said it saw a positive outlook, both from a coal price perspective as well as operating performance point-of-view.
Anglo Coal said coal remained a key source of energy globally, both at present and going into the future.
During 2003, world primary energy consumption increased by 2.9% and for the second year running, coal was the fastest growing fuel source increasing by 6.9%, driven by demand from China, Russia, Japan and North America, Anglo Coal said, quoting industry expects.
Coal currently fuels almost 40% of the world`s power generation and coal as a raw material underpins some 70% of the world`s steel industry, Anglo Coal said quoting industry expects.
Looking ahead to 20h25, energy consultants expect oil to make up 41% of global energy consumption, gas 26%, coal 23%, nuclear 5%, renewable energy sources 3% and other energy sources 2%.
Anglo Coal is the world`s sixth largest coal producer by output, behind US group Peabody Energy, London-listed Rio Tinto, global resources group BHP Billiton (BIL), Chinese state-owned coal miner Shenhua and US group ArchCoal.
However, Anglo Coal considers itself the world`s fourth largest coal exporter as players ArchCoal and Shenhua largely supply domestic coal markets.
US group Peabody Energy`s coal annual output stood at 203.2 million tons during its 2003 financial year, compared with Anglo Coal`s total 2003 coal output of 86.6 million tons.
In South Africa, Anglo Coal supplies power utility Eskom with coal from its Kriel, New Denmark, New Vaal and Mafube mines, while it also has a joint venture with Sasol (SOL) at the Isibonela coal mine.
The group also supplies the international market with coal from its Bank, Goedehoop, Kleinkopje, Landau and Greenside coal mines.
Anglo Coal also has a 27% stake in the Richards Bay Coal Terminal and 11% in Eyesizwe Coal.
