“We dig coal out, put it on a ship, and sell it to customers who produce electricity, steel and cement, three basic commodities for the world economy,” said Flannery.

Flannery’s blunt point on the simplicity of coal supply and demand was made against the current backdrop of complicated global economics and financial meltdown.

“You will see from our 2008 results that the real economy functions quite well,” said Flannery.

“The markets for all commodities have been very volatile but the coal market has proven to be, at least in [Australian dollar] terms, quite resilient.”

Felix this year made a $A188.5 million profit after tax, with an underlying operating profit of $101.9 million, discounting its profit from the 20% equity sale of the Moolarben project to the Korean power industry.

Felix is currently gearing up for a big year ahead at its Moolarben development in New South Wales with site preparation work starting this week.

“In an economic climate where many workers are being made redundant, Felix will be engaging some 220 contractors to build this project over the next 14 months,” said Flannery.

“We will then employ approximately 320 mine workers to operate the open cut and underground as production builds up over the next two to three years from 2010 to 2012.”

Felix chairman Travers Duncan said the company had the in-house expertise in mining project design and construction to keep costs at the project under control.

He said such skills were exhibited in the commissioning of the Ashton longwall.

On takeover talks, Duncan said Felix was continuing with talks but nothing certain had eventuated as yet.

“In a difficult market environment we are working as quickly as possible to finalise these discussions,” Duncan said.

“However, at this stage the interest of all parties remains incomplete, non-binding and conditional.”

Flannery ended his presentation with a jibe at both the state and federal governments.

“But remember in all this – we are only coal miners, digging coal and putting it on ships, earning export dollars for Australia and ensuring our standard of living. We are not an industry that needs subsidising,” Flannery said.

“I hope the state and federal governments remember this when they introduce ad hoc changes to their royalty regimes or emissions trading schemes that make us less competitive.”

Felix was trading at $A13.42 this morning. The company’s share price has consistently been regaining ground jumping 7.8% yesterday, almost 5% Monday and 11.3% Friday.