Macarthur Coal stays in the black and then some

By Rachel Hewitt, From Herald Sun
Feb24, 2011 12:00AM

QUEENSLAND's flood disaster hasn't dampened Macarthur Coal's bottom line, with the miner more than tripling its half-year profit thanks to surging commodity prices.

The Bowen Basin producer, which exports coal for steelmaking, yesterday unveiled a $141.3 million profit and three-fold increase in its dividend. Soaring prices drove sales revenue more than $100 million higher.

The release of Macarthur's results came amid reports that mining giant BHP Billiton is pushing for a shift to monthly coking coal pricing in contract talks with Japanese steelmakers, a move that would give miners greater access to surging spot market prices. Macarthur chief Nicole Hollows yesterday declined to comment on how high prices might go, but she added: "I think it's fair to say that the price is definitely going up.

"The quantum of that increase will ultimately depend on supply constraints but also I think a determining factor will be what price China and India are prepared to pay," she said.

Macarthur's profit was also bolstered by a $40 million one-off gain because Gloucester Coal exercised an option to increase its interest in the venture.

Queensland's big wet forced Macarthur in December to enact a "force majeure" contract clause allowing it to miss deliveries due to unforeseen events.

Macarthur declared a 24c interim dividend to be paid on April 11 to shareholders registered by March 18.

Tags:Gloucester coal, force majeure, interim dividend, shareholders,(sourced:Herald Sun)