Nippon Steel reaches basic agreement with AMCI on acquisition of interest in two Australian coal min

Nippon Steel Corporation (President: MIMURA Akio) and American Metals & Coal International， Inc. (Head Office: Connecticut， President: Hans MENDE， ”AMCI”)， have reached a basic agreement to acquire a 5% interest each in Australian coal mines Carborough Downs and Glennies Creek owned by AMCI， and further to purchase coking coal from both mines over a 10 year period (which may be extended by NSC’s option) totalling approximately 12 million tons. Conclusion of definitive agreements are targeted by the end of January 2005.

Over the years Nippon Steel has maintained a close relationship with AMCI through transactions such as the purchase of American coals and Australian semi-anthracite. AMCI is currently planning to develop the Carborough Downs coking coal deposit located in the State of Queensland， Australia with production scheduled to commence in JFY2005 then to be gradually expanded. AMCI is also planning to expand production at its Glennies Creek mine located in the State of New South Wales， Australia to increase the annual capacity of the mine from 1.7 million tons per annum to 2.8 million tons per annum. Nippon Steel expects that its participation in and support of AMCI’s development/expansion of these mines will contribute to the stabilization of the global coking coal market which currently remains tight.

As part of the basic agreement reached with AMCI， Nippon Steel also expects to secure supply of coking coal from the Carborough Downs and Glennies Creek mines over a period of 10 years totalling approximately 12 million tons. With their low ash content and high fluidity， both coals should contribute to the further stabilization of the company’s purchase management for key raw materials.

Through the above arrangements， Nippon Steel looks forward to further strengthening its ties with AMCI.