OREANDA-NEWS. October 26, 2012. For the period from January to September of 2012, the Company’s unit selling cost of self-produced commercial coal decreased from RMB237.10/tonne for the year of 2011 toRMB217.64/tonne, representing a decrease of RMB19.46/tonne or 8.2%, or a decrease of RMB12.45/tonne or 5.4% as compared to RMB230.09/tonne for the period from January to September of 2011 , which was mainly attributable to:

Firstly, raw material costs decreased by RMB2.29/tonne as compared to the corresponding period of the previous year. The decrease was mainly attributable to further strengthening of material consumption management of the Company as well as a decrease in unit raw material cost as compared to the corresponding period of the previous year since Huajin Company ceased to be included in the consolidated financial statements during the period.

Secondly, labour costs decreased by RMB1.36/tonne as compared to the corresponding period of the previous year. The decrease was mainly attributable to the Company’s stringent control over labour costs as well as a decrease in unit labour cost as compared to the corresponding period of the previous year since Huajin Company ceased to be included in the consolidated financial statements during the period.

Thirdly, depreciation and amortisation increased by RMB1.36/tonne as compared to the corresponding period of the previous year. The increase was mainly attributable to the increase in the transfer of projects under construction to fixed assets since the second half of 2011 and the increase in the planned acquisition of equipment by subsidiaries of the Company according to the capital expenditure plan 2012 as compared to the corresponding period of the previous year.

Fourthly, balance of four funds such as safety fund and future development fund, mine environmental restoration fund and coal mine transformation fund decreased by RMB8.66/tonne as compared to the corresponding period of the previous year. The decrease of the balance of specific funds was mainly attributable to the increase in the costs of using specific funds during the period as compared to the corresponding period of the previous year.

Fifthly, outsourcing mining engineering fee recorded an increase of RMB3.23/tonne as compared to the corresponding period of the previous year, which was primarily due to the increase in the cost for outsourcing stripping of the open pit mines in the mining areas of the Company.

Sixthly, other costs decreased by RMB4.72/tonne as compared to the corresponding period of the previous year, which was mainly due to the decrease in environmental restoration expenses of the subsidiaries of the Company and the expenses on small and medium engineering projects during the period as compared to the corresponding period of the previous year.

Full report see here: http://www.chinacoalenergy.com/n753578/n754320/n754352/n754562/n762563/n1781027.files/n1781028.pdf