The purpose of the sale of thermal coal was to obtain an alternative fuel in place of atomic power generation following the Fukushima nuclear power plant disaster which crippled northeast Japan in March.
Production at the Horna coal mine in the eastern part of West Papua province is set to begin in the second half of 2012.
The production at the mine, having estimated deposits of 100 million tonnes, is set to start with 1 million tonnes per year and rise eventually to 4 to 5 million tonnes a year.
JX Nippon currently imports about 9 million tonnes a year of coal to its customers in Japan, of which the Bulga coal mine in Australia supplies about 7 million tonnes, reports Reuters.
