Announcing Acquisition of 10% Interest in Boggabri Coal Mine
Mar. 23, 2015
Nippon Steel & Sumitomo Metal Corporation
Announcing Acquisition of 10% Interest in Boggabri Coal Mine
Nippon Steel & Sumitomo Metal Corporation (Representative Director & President: Kosei Shindo; hereinafter “NSSMC”) hereby announces that it has entered into an agreement with Idemitsu Kosan Co., Ltd. (Representative Director & CEO: Takashi Tsukioka; hereinafter “IDEMITSU”) to purchase a 10% interest in the Boggabri Coal Joint Venture in New South Wales, Australia, in which IDEMITSU participates through its Australian subsidiary (hereinafter “the JV”).
As soon as the permits from the competent authorities and various other requirements have been cleared, the agreement concerning this acquisition will come into effect, enabling us to participate in the JV.
Until now, the JV has been operated by an Australian subsidiary of IDEMITSU and that of Chugoku Electric Power Co., Inc. Our acquisition of a 10% interest shall be effected through the purchase by NS Boggabri Pty Limited, a wholly owned subsidiary of Nippon Steel & Sumitomo Metal Australia Pty Limited, which is our consolidated subsidiary, from IDEMITSU’s Australian subsidiary.
Boggabri Coal Mine, whose operation started in 2006, is now undergoing an expansion project (introduction of a Coal Preparation Plant, etc.) to structure a 7-million-ton-a-year production setup within this year. When completed, Boggabri Coal Mine is expected to produce, along with high-quality thermal coal, coking coal (semi-soft coking coal and coal for pulverized coal injection), all of which are of high quality - low in ash content and sulfur content.
Our acquisition this time, which is intended for coal of high quality for both iron-making and coal-fired power generation, is expected to contribute to securing our raw materials on a long-term basis.
From the perspective of securing stable, medium- and long-term supplies of raw materials, we pursue strategic purchasing policies, including seeking and obtaining interests in mining projects, while at the same time further strengthening business relations with raw-materials suppliers.
Reference: Outline of Boggabri Coal Mine
| 1. Location: | See Attached Sheet. |
| 2. Composition of interests: | See Attached Sheet. |
| 3. Production: | ca. 5.6 million tons (results in CY2014) |
| 4. Mining method: | “Truck & Shovel” open-cut |
Boggabri Coal Mine
Signing Ceremony
From left to right ;
Toshiro Shibahara, Idemitsu Australia Resources Pty Limited,
Deputy Managing Director, Chief Executive Officer
Shinichi Naruuchi, Idemitsu Australia Resources Pty Limited,
Managing Director
Hiroshi Seki, IDEMITSU,
Managing Director, Energy & Mineral Resources
Yasushi Aoki, NSSMC,
General Manager, Head of Raw Materials Div-1
Tadashi Nomura,
Nippon Steel & Sumitomo Metal Australia Pty Limited, Director
Seiji Chiba, IDEMITSU, Executive Officer and General Manager,
Coal Business Department
For inquiries, please contact:
Public Relations Center, General Administration Div.
Tel.: 03-6867-2146, -2135, -2977, -5807
Attached Sheet
1. Location of Boggabri Coal Mine
2. Composition of interests in Boggabri Coal Mine JV
※1: A 100% subsidiary of Idemitsu Australia Resources Pty Limited, which in turn is
a 100% subsidiary of IDEMITSU.
※2: A 100% subsidiary of Nippon Steel & Sumitomo Metal Australia Pty Limited,
which in turn is a 100% subsidiary of NSSMC.
3. Outline of the agreement for the acquisition of interest
1) Parties to the agreement
Seller: Boggabri Coal Pty Ltd.
Buyer: NS Boggabri Pty Limited
2) Percentage of interest to be acquired: 10%
