Coal
Overview
Very strong demand for thermal and coking coal in both the Pacific and Atlantic markets for the majority of the year drove coal prices to unprecedented levels. Robust prices, a strong operating performance and record sales volumes resulted in Xstrata Coal’s EBIT rising more than four-fold to $3.5 billion. Real unit cost savings of $117 million year-on-year were achieved due to productivity improvements. The Resource Pacific acquisition was successfully integrated during the year.
| Coal Operations | ||
|---|---|---|
| Production (million tonnes) | 2008 | 2007 |
| Total consolidated production | 85.5 | 82.8 |
| Employees | 9,622 | 9,179 |
| Average prices | ||
| Average received export FOB coal price ($/t) | ||
| Australian thermal | 95.6 | 51.2 |
| South African thermal | 78.4 | 51.7 |
| Americas thermal | 80.9 | 52.3 |
| Australian coking | 232.5 | 98.1 |
| Australian semi-soft coking | 157.5 | 62.5 |
| Coal Financial data | ||
|---|---|---|
| 2008 | 2007 | |
| Revenue ($m) | 7,944 | 4,201 |
| EBITDA ($m) | 4,173 | 1,194 |
| EBIT ($m) | 3,549 | 690 |
| Share of Group EBIT (%) | 48.9 | 7.8 |
| Capital expenditure ($m) | 1,204 | 807 |
Peter Freyberg
Chief Executive
Xstrata Coal
Contribution to Group Revenue in 2008
Contribution to Group EBIT in 2008
Relevant links
For more information visit www.xstratacoal.com