Rio Tinto unit Coal & Allied Industries Ltd has posted a net profit of $67.6 million for the year ended December 31, 1999, down on the previous year's $88.5 million.
The Hunter Valley coal miner said negative effects of a stronger Australian dollar, which shaved $7.5 million off earnings, and lower coal prices ($48.5 million), offset increased coal production volumes (which boosted net earnings by $14.5 million) and lower costs ($17.9 million saving).
Overall sales revenues for 1999 were $528.1 million, down from $588.3 million in 1998. Coal production totalled 11 million tonnes in 1999, compared with 9.5Mt the previous year.
"The 1999 result was achieved in a difficult market through increased productivity and reduced costs," said C&A managing director Dr Kim Tronson. "The continuing market weakness demonstrates the need to further lift productivity and reduce costs at all of our operations.
"The recent restructuring of the Mount Thorley operations and the amalgamation of the Hunter Valley No.1 and Howick mines are already contributing in a positive way. Over the next few years, we expect to achieve further cost reductions and increased operating efficiencies as a result of work practice changes."
