Sojitz’s funds have earned the trading house a 30% joint venture interest in Yamala, formerly known as NEC’s Emerald Coal Project. Sojitz has paid NEC an additional up-front cash payment of $500,000 and will have an option to acquire up to a further 19% for $6.65 million cash on completion of its farm-in.

NEC managing director Keith Barker said the joint venture, management and marketing agreements had been established primarily to progress Yamala through to mine development.

“We now intend to ramp up activity on the project, which is supported by some solid historical data,” Barker said.

Sojitz will also hold marketing rights for all coal sold from the EPC while NEC will manage the exploration and evaluation program and any subsequent mine development.

The first stage exploration program on EPC 927 will start next week. Exploration is initially aimed at assessing potential for opencut coal which could be accessed prior to establishing an underground operation.

Drilling is expected to be completed and results reported during the June 2007 quarter.