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China Shenhua Energy Co, the country’s largest coal mining group, said yesterday that its net profit for the first six months dropped 45.6 percent year on year to 11.73 billion yuan (US$1.9 billion) .
Business income for the period fell 32.1 percent to 87.78 billion yuan, it said.
The slump was due to weak demand, which affected both sales — down 24.2 percent in the period — and prices, it said, adding that government policies to encourage the use of non-fossil fuels also damaged its sales figures.
Coal accounts for 66 percent of China’s primary energy consumption, 35 percentage points higher than the world average.
The country’s coal output last year fell for the first time this century as a result of slowing economic growth, efforts to cut air pollution and increased investment in renewable energy.
Coal production in the first four months fell 6.1 percent to 1.15 billion tons, accelerating from a 3.5 percent dip in the first three months.