23.03.2015, 11:05
Announcement Regarding Transfer of 10% Interest in Boggabri Coal Mine
OREANDA-NEWS. Idemitsu Kosan Co.,Ltd. (Headquarters: Chiyoda-ku, Tokyo; Representative Director & CEO: Takashi Tsukioka, hereinafter "we" or "Idemitsu") is pleased to announce that Boggabri Coal Pty Ltd. (Managing Director: Shinichi Naruuchi, hereinafter "BCPL") has executed the sale and purchase agreement with NS Boggabri Pty Limited (Director: Tadashi Nomura), a wholly owned Australian sub-subsidiary of Nippon Steel & Sumitomo Metal Corporation (Headquarters: Chiyoda-ku, Tokyo; President: Kosei Shindo, hereinafter "NSSMC") to transfer a 10% interest of Boggabri Coal Mine today. The transaction includes an agreement with NSSMC of a long-term coal sale from the mine.
Located in New South Wales, Australia, Boggabri Coal Mine produces high quality thermal coal with high calorific value, low sulphur and low ash and the production in 2014 was about 5.6 million tonnes. Given demand for coal has been increasing in Asia including Japan where new coal power plants are being constructed, the mine will increase its production capacity up to 7 million tonnes, improve quality of the coal by introduction of Coal Preparation Plant and also increase production of Pulverised Coal Injection (PCI) Coal and Semi Soft Coking (SSC) Coal from 2015.
This transaction follows the 10% BCPL's interest transaction to Chugoku Electric Power Australia Resources Pty. Ltd. last year and supply coal from the mine to Chugoku Electric Power Co., Inc. on a long term basis. As a result of these two transactions, we will have two Japanese major customers in electricity power and steel industries as joint venturers. We expect that it leads to the more stable operations of Boggabri Coal Mine and energy security in Japan. Further, advancing coal usage technology, we will expand sales of PCI coal and SSC coal to steel companies throughout Asia including Japan in the wake of this long term supply to NSSMC.
We continue to increase our lineup of coals and provide a more steady supply and, by enhancing competitiveness of our existing assets and proceeding the realignment of our coal business portfolio, we achieve the restructuring of our coal business which we planned in our 4th medium term management plan.
Located in New South Wales, Australia, Boggabri Coal Mine produces high quality thermal coal with high calorific value, low sulphur and low ash and the production in 2014 was about 5.6 million tonnes. Given demand for coal has been increasing in Asia including Japan where new coal power plants are being constructed, the mine will increase its production capacity up to 7 million tonnes, improve quality of the coal by introduction of Coal Preparation Plant and also increase production of Pulverised Coal Injection (PCI) Coal and Semi Soft Coking (SSC) Coal from 2015.
This transaction follows the 10% BCPL's interest transaction to Chugoku Electric Power Australia Resources Pty. Ltd. last year and supply coal from the mine to Chugoku Electric Power Co., Inc. on a long term basis. As a result of these two transactions, we will have two Japanese major customers in electricity power and steel industries as joint venturers. We expect that it leads to the more stable operations of Boggabri Coal Mine and energy security in Japan. Further, advancing coal usage technology, we will expand sales of PCI coal and SSC coal to steel companies throughout Asia including Japan in the wake of this long term supply to NSSMC.
We continue to increase our lineup of coals and provide a more steady supply and, by enhancing competitiveness of our existing assets and proceeding the realignment of our coal business portfolio, we achieve the restructuring of our coal business which we planned in our 4th medium term management plan.
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