Nippon Steel & Sumitomo Metal Corporation (Representative Director & President: Kosei Shindo; hereinafter “NSSMC”) hereby announces that it has entered into an agreement with Idemitsu Kosan Co., Ltd. (Representative Director & CEO: Takashi Tsukioka; hereinafter “IDEMITSU”) to purchase a 10% interest in the Boggabri Coal Joint Venture in New South Wales, Australia, in which IDEMITSU participates through its Australian subsidiary (hereinafter “the JV”).
As soon as the permits from the competent authorities and various other requirements have been cleared, the agreement concerning this acquisition will come into effect, enabling us to participate in the JV.
Until now, the JV has been operated by an Australian subsidiary of IDEMITSU and that of Chugoku Electric Power Co., Inc. Our acquisition of a 10% interest shall be effected through the purchase by NS Boggabri Pty Limited, a wholly owned subsidiary of Nippon Steel & Sumitomo Metal Australia Pty Limited, which is our consolidated subsidiary, from IDEMITSU’s Australian subsidiary.
Boggabri Coal Mine, whose operation started in 2006, is now undergoing an expansion project (introduction of a Coal Preparation Plant, etc.) to structure a 7-million-ton-a-year production setup within this year. When completed, Boggabri Coal Mine is expected to produce, along with high-quality thermal coal, coking coal (semi-soft coking coal and coal for pulverized coal injection), all of which are of high quality - low in ash content and sulfur content.
Our acquisition this time, which is intended for coal of high quality for both iron-making and coal-fired power generation, is expected to contribute to securing our raw materials on a long-term basis.
From the perspective of securing stable, medium- and long-term supplies of raw materials, we pursue strategic purchasing policies, including seeking and obtaining interests in mining projects, while at the same time further strengthening business relations with raw-materials suppliers.
Reference: Outline of Boggabri Coal Mine
|1. Location:||See Attached Sheet.|
|2. Composition of interests:||See Attached Sheet.|
|3. Production:||ca. 5.6 million tons (results in CY2014)|
|4. Mining method:||“Truck & Shovel” open-cut|