Acquisition of Interests in AMCI-owned Coking Coal Mines in Australia and Effectuation of Long-term

　Nippon Steel Corporation (President: Akio MIMURA) has acquired interests (5% each) in Carborough Downs and Glennies Creek， Australian coking coal mines， owned by American Metals & Coal International， Inc. (Head Office: Connecticut， President: Hans MENDE， ”AMCI”). Accordingly， the long-term purchase agreements(the term: 10 years， total quantity: about 12 million tons) signed with AMCI for coking coal to be produced from the two mines will come into effect. This is in accordance with the basic agreement reached earlier between both parties.

　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 2006 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 participating in and support of AMCI’s development and expansion of these two mines will contribute to the stabilization of the global coking coal market， and these long-term arrangements will no doubt lead to further stability in our procurement of key raw materials.

　Nippon Steel’s acquisition of interests in these two mines will be implemented through affiliated companies of Nippon Steel Australia Pty. Limited.

　The JFE group (JFE Steel Corporation and JFE Shoji Trade Corporation) and POSCO， Korea have also concluded their similar arrangements with AMCI.

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