saidJuly 18 that it produced 40.4 million tonnes of coal in the first half, down 12.7%from a year ago.

Coalsales for the six monthsending June 30 rose1.8% year over year to 65.3 million tonnes.

Thecompany said its production was affected by government policies, marketenvironment, heavy weather and equipment maintenance.

Totalcoal output in China 277.5 million tonnes and 1.63billion tonnes in June and the first half, down 16.6% and 9.7%, respectively,from a year ago, as the country moves to reduce production capacity.