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Thursday, 17 December 09
JFE STEEL INVESTS $555 MILLION IN AUSTRALIA COAL MINE


JFE Steel Corp., Japan’s second- largest producer, will invest 50 billion yen ($555 million) in a coal mine in Queensland, Australia, including an acquisition of a 20 percent stake, its biggest investment in coal.

The investment in the mine, owned by QCoal Pty, includes capital expenditure on factory and mining machinery, Akira Suzuki, general manager of the raw materials department, told reporters in Tokyo today. The unit of Tokyo-based JFE Holdings Inc. signed a long-term contract to secure 2 million metric tons of hard coking coal annually from the Byerwen coal mine.

JFE is seeking to secure coking coal and iron ore as global competition for raw materials intensifies. The Byerwen coal mine will start operations in 2012, and is expected to produce 10 million tons of coal a year, according to a JFE statement today.

JFE Holdings shares, which have gained 51 percent this year, rose 2.3 percent to 3,520 yen on the Tokyo Stock Exchange at the 3 p.m. close.

A group comprising Japan’s five largest blast furnace mills, including JFE, South Korea’s Posco and trading company Itochu Corp. announced a plan last October to buy 40 percent of Brazilian iron-ore producer Nacional Minerios SA for about $3.12 billion.
Source: Bloomber



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