The transaction comes after Idemitsu Australia Resources’ subsidiary Boggabri Coal transferred 10% interest to Chugoku Electric Power Australia Resources in 2014, and agreed to supply coal to Chugoku Electric Power on a long-term basis.
The transaction is subject to regulatory approvals and various other conditions.
With this acquisition, Nippon Steel & Sumitomo Metal will be able to secure raw materials on a long-term basis.
Commenced operations in 2006, Boggabri coal mine is said to produce thermal coal with high calorific value, low sulphur and low ash.
The mine is currently undergoing an expansion project, to reach seven million tons a year production target this year.
The expansion includes addition of a coal preparation plant, increasing production of pulverised coal injection coal and semi soft coking coal.
In 2014, Boggabri coal mine project produced about 5.6 million tons.
Image: Boggabri coal mine is undergoing an expansion project, to reach seven million tons a year production. Photo: courtesy of Nippon Steel & Sumitomo Metal Corporation.
