Macarthur Coal shares jump 7

Macarthur Coal shares have surged more than seven per cent after the company increased its annual profit guidance by as much as $23 million after a rise in expected sales.

The Queensland-based coal miner has forecast a profit of between $80 million to $90 million for the 2008 financial year, less than two months after providing guidance of $67 million to $75 million.

Macarthur, the supplier of more than a third of the world's pulverised coal, said the revised forecast follows increased coal sales and shipments in June, due to a reduction in the vessel queue at Dalrymple Bay Coal Terminal.

"This is particularly pleasing considering operations at Coppabella continue to suffer residual effects from flooding in the Bowen basin earlier in the year," acting chief executive Peter Kane said in a statement.

Macarthur shares gained $1.15, or 7.5 per cent to an intra-day high of $16.45 before easing to $16.40 by 1430 AEST.

Macarthur has been the focus of corporate action over recent months, with steelmakers ArcelorMittal, the world's biggest, and Korea's Posco acquiring significant positions in the company.

Steelmakers are buying into coal and iron ore companies to secure supply as commodity prices climb higher, underpinned by the industrialisation of China and other developing nations.

Corporate interest was sparked after former Macarthur chief executive Ken Talbot started selling down his major stake in the company he founded.

Macarthur's largest customer ArcelorMittal is now the company's biggest single shareholder with a 19.9 per cent stake.

Chinese group CITIC has a 17.7 per cent interest, while Posco - another Macarthur customer - has a 10 per cent stake.

ArcelorMittal and Posco purchased their stakes in Macarthur at $20 per share.

Mr Talbot's holding in Macarthur now sits at 4.76 per cent.

Macarthur supplies more than a third of the world's pulverised coal from its two operations, Coppabella and Moorvale, which are in QLD's Bowen

Basin.