Source: The Wall Street Journal Asia                              Date: 1 September, 2010

China Shenhua Energy Co., the country's largest listed coal producer by output, has said it faces uncertainties during the second half of this year, as China's economic growth is likely to decelerate. "It is expected that major coal-consuming industries will still post growth in the second half of the year," the company said in a prepared statement. "However, given the impact of factors such as China's macro adjustment and control, energy-saving and emission reduction policies, as well as the relatively higher base in the second half of last year, there will be a slowdown in the growth rate as compared with that in the first half of the year."

Shenhua also said growth in coal demand is expected to decline compared with the year's first half. The Beijing-based company, which also operates railways, ports and power plants, said coal output rose 3.2% to 109.2 million metric tons, accounting for 48% of the company's full-year production target of 229 million tons. Coal sales rose 12% to 137.4 million tons, and the average selling price of the company's coal increased 8.4%.