Sojitz, Marubeni, JFE Shoji Trade and Nippon Steel Trading Acquire Interests in Australia’s Codrilla Deposit
- Ownership of Low Volatile Pulverised Coal Injection (LV PCI) Product Will Contribute to Stable Supplies -
May 16, 2011
JFE Shoji Trade Corporation
Nippon Steel Trading Co., Ltd.
Sojitz Corporation, Marubeni Corporation, JFE Shoji Trade Corporation and Nippon Steel Trading Co., Ltd. concluded a contract to acquire a total of a 19.7% interest in the Codrilla Deposit from Macarthur Coal Limited and CITIC Resources Holdings Limited. The mine is located 150 km southwest of Dalrymple Bay Port in Queensland, Australia.
[Area of the Codrilla Mine]
Sojitz, Marubeni, JFE Shoji Trade and Nippon Steel Trading as well as Macarthur Coal and CITIC Resources are the business partner of Coppabella & Moorvale Joint Venture (CMJV), which is adjacent to the Codrilla Deposit and it is planned to be developed as the new mine lot. The Codrilla Deposit is expected to produce Low Volatile Pulverised Coal Injection (LV PCI) product, and planned to enter into production in 2013.
PCI coal, a metallurgical coal used as a steel-making material, is pulverized coal that is injected into blast furnaces. The demand for PCI coal increases in Asian market including Japan and Korea, also in Europe and Brazil. It is expected to expand also in the future. The development of the Codrilla coal mine improves the share of CMJV in the market of PCI coal further and this project contributes to the raw material stability procurement of each blast furnace company including Nippon Steel Corporation and JFE Steel Corporation. Sojitz, Marubeni, JFE Shoji Trade, and Nippon Steel Trading are committed to establishing systems to ensure stable supplies in the coal business through CMJV.
Outline of Codrilla Deposit
|(1) Location||Approximately 150 km southwest of Dalrymple Bay Port in Queensland, Australia|
|(2) Reserves||Approximately 50 million tons of reserves|
|(3) Start of Production||2013 (projected)|
|(4) Production Method||Open Cut mining|
|(5) Annual production volume||Approx. 3.2 million tons/year|
|(7) Ownership interests||Sojitz: 7%, Marubeni: 7%, JFE Shoji Trade: 3.7%,
Nippon Steel Trading: 2.0%, Macarthur Coal: 73.3%,
CITIC Resources: 7%