Nippon Steel, JFE to Invest in Australian Coal Mine

Tokyo, Aug. 22 (Jiji Press)--Japan's Nippon Steel Corp. and JFE Steel Corp. each said Thursday that they will invest in an Australian coal mine.

Nippon Steel is set to acquire a 20 pct stake in the Blackwater coal mine, located in the northeastern state of Queensland, for about 108 billion yen, while JFE will take a 10 pct stake for about 54 billion yen.

The move comes as high-quality coking coal is needed for advanced technology that uses hydrogen to produce iron efficiently while reducing carbon dioxide emissions.

The two Japanese companies will conclude long-term procurement contracts to secure stable supplies of high-quality coking coal from the mine.

They will invest in a joint venture expected to be established between January and March next year for the development of the mine, owned by Australian coal mining firm Whitehaven Coal Ltd., and will participate in decision-making on the joint venture's business, with veto rights over important decisions.

As it is becoming difficult to develop new coal mines amid the spread of decarbonization efforts, Nippon Steel and JFE Steel plan to continue working to secure high-quality coking coal.

Nippon Steel Managing Executive Officer Ryuichi Nagai told an online press conference that the company will consider any other promising projects.

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