Idemitsu sells stake in Boggabri coal mine

OREANDA-NEWS. Japanese energy firm Idemitsu has sold a 10pc stake in Australia's Boggabri mine to Japanese steelmaker Nippon Steel and Sumitomo Metal (NSSMC), ahead of the start-up of coking coal production this year.

Idemitsu will supply semi-soft coking and pulverized coal injection (PCI) grade coal from the mine to NSSMC. The volume and the length of the supply deal, as well as the value of the stake sale, were undisclosed.

Idemitsu's share in the Boggabri mine will fall to 80pc, with the sale still requiring approval from Australian regulators. Japanese utility Chugoku Electric Power holds the remaining 10pc stake.

The Boggabri mine in New South Wales state is expected to produce around 7mn t of coal this year, up by 25pc from around 5.6mn t in 2014. Idemitsu plans to enhance its quality, as well as production capacity, to help meet rising demand from Japan and other Asia-Pacific importers, including power utilities and steelmakers.