Robe River JV Infrastructure Expansion in Western Australia

Nippon Steel Corporation (Representative Director and President: Shoji MUNEOKA, “Nippon Steel”), and its 100% subsidiary Nippon Steel Australia Pty Ltd (“NSA”) announced today that they decided to fund on early commencement of infrastructure work and acquisition of long-lead items for the expansion of iron ore export capacity at Cape Lambert owned by Robe River JV, from 80 million tonnes to 180 million tonnes per annum. (*1) Robe River JV is jointly operated with Rio Tinto group (Chief Executive: Tom Albanese, “Rio Tinto”) and other partners, in the Pilbara region of Western Australia. (*2)

The early funding at this time is estimated at approximately A$1.35 billion. (*3)

While the whole scope of the project, including the development of mine will decided in due course after completion of the feasibility study currently undertaken and further discussion among the parties, this early planning and acquisition will ensure the time-to-market schedule of the project without any delay due to long-lead items.

Under the current medium-term consolidated business plan (FY2006 through FY2008), Nippon Steel is striving to enhance overall efficiency in the iron and steelmaking process with reinforcement of key facilities such as the expansion and relining of blast furnaces and installation of a new coke oven and increasing use of low-grade raw materials based on improvement of operational technology.

Further, in terms of raw material procurement, Nippon Steel is seeking to secure stable raw material supply under long-term arrangements, which include investment in mines. Nippon Steel, cementing relationship with major suppliers, will continue to ensure stable procurement of raw material on a medium and long-term basis.


(*1): The port at Cape Lambert is currently under construction to increase its capacity from 57 to 80 million tonnes per annum ,which is expected to be completed by end of 2008.


(*2): This funding is subject to, and only becomes binding on satisfaction of the relevant terms and conditions, set out in the agreement for common usage of infrastructure between Robe River JV and Rio Tinto group.

(*3): Each party in the Robe River JV will bear the cost in proportion to its percentage interest respectively.
(Rio Tinto: 53%, Mitsui: 33%, Nippon Steel: 10.5%, Sumitomo Metals: 3.5%).




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