Yanzhou Coal to benefit from favourable policy changes

China's major coal producer Yanzhou Coal Mining (NYSE: YZC) will benefit a string of favourable government policies.

On August 14, the government says it will have closed down 10,000 of the small-scale collieries by the end of this year, six months ahead of schedule to shut down around half its small coal mines by mid-2008.

The shutdown efforts results in the continued rises of coal prices domestically.

The Chinese government also said on August 13 that it would encourage state-owned enterprises (SOEs) including Yanzhou Coal Mining's parent Yankuang Group to inject quality assets into their listed vehicles to realize the integrated listings of SOEs.

Partly riding such positive prospect, Yanzhou Coal Mining closed at 19.90 yuan per share on August 14 at the Shanghai Stock Exchange, up 7.63 percent from previous close.