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Today’s 50 billion yen deal includes a long-term offtake contract for JFE to take annual delivery of 2 million tonnes of premium hard coking coal. Coal will be shipped from Abbot Point coal terminal.
The acquisition enables JFE to increase its ratio of captive coal resources to one of the highest among major steelmakers.
The Byerwen open cut mine is expected to produce 10Mt per annum of coking coal beginning in 2012.
JFE said the development showed good geological conditions ideal for open cut mining.
The company said it would work with QCoal to start project operations “as soon as possible”
QCoal already operates the Sonoma open cut coal mine in Queensland. JFE, through subsidiary Shoji Trade Corporation, also has a stake in Sonoma.
Sonoma produces 4Mtpa and ships out of Abbot Point.
