Japan’s Nikkei reported that Nippon Steel Corp and JFE Steel Corp, as well as South Korea’s Posco, have increased their stakes in an Australian coking coal project.
The three will buy their share from Toyota Tsusho, which will offload 13% of its rights in Australian Integra Coal, selling 2.35% each to Nippon Steel, the JFE Holdings unit and Posco. Their interests will increase to 5.95% each.
The remaining 5.95% will be bought by Chubu Electric Power Co, since the mine also produces regular coal for use in power generation.
The Integra Coal joint venture, located in New South Wales, produces 3.3Mt/y of coking and other coal and is expected to continue supplying these materials for another 20 years.
Brazilian resource major Vale SA holds a 61.2% interest, followed by Toyota Tsusho with 28%. Nippon Steel, JFE Steel and Posco each own 3.6%.
The joint venture comprises an open cut mine which began operations in 1991, and an underground mine which started in 1999.