The report said the possible deal with the Chinese company in the Heilongjiang Province, represented one of the largest agreements with a Chinese mining company, valued at about US$100 million.

Itochu, after signing a preliminary contract, has begun a feasibility study. If the deal proves practicable, Itochu could sign a deal that spans 10 to 20 years.

Putting the immensity of the deal into perspective, last year Japan imported 11.51 million tons of coking coal from China. Most of the direct long-term contracts between Japanese firms and Chinese producers amounted to less than one million tons per year, according to the Nikkei Report.