Yanzhou Coal says 2009 exports won't increase

(Adds details, earnings forecast)

HONG KONG, Aug 25 (Reuters) - Yanzhou Coal Mining Co Ltd , China's No. 3 coal producer by market value, said on Monday it had no plans to raise exports next year due to strong domestic demand.

Coal exports from China, the world's largest producer and consumer of coal, rose 5 percent in the first seven months of this year from a year earlier, as Chinese producers took advantages of the gap between lagging local prices and hot overseas markets.

But exports fell by nearly a third in July from a year earlier and are expected to drop further for the rest of the year as Beijing has asked coal firms to cut exports and imposed a 10 percent export tax on thermal coal, in a bid to help ease the country's worst power crisis since 2004.

Yanzhou, which vies with bigger rivals Shenhua Energy Corp and China Coal Energy Co , has planned to cut its own exports sharply to 500,000 tonnes of coal this year from 1.7 million tonnes last year and will not increase export volume in 2009.

"We will not raise exports next year even if export prices keep rising since we can not even satisfy domestic demand," Chief Financial Officer Wu Yuxiang told reporters.

In the first half of this year, the company only exported 164,000 tonnes of coal despite raising coal export prices by 92 percent to $151.67 a tonne in 2008.

The net profit of Yanzhou Coal, based in the eastern province of Shandong, is forecast to soar 260 percent in the first three quarters of this year based on Chinese accounting standards on soaring prices, Wu said.

Yanzhou Coal's Hong Kong-listed shares jumped 5.7 percent on Monday, outpacing a 3.5 percent rise in the benchmark Hang Seng Index .HSI, after it posted a 160 percent jump in first-half earnings to 3.9 billion yuan ($569.9 million). ($1=6.843 Yuan) (Reporting by Judy Hua; editing by Jonathan Hopfner)