Marubeni acquires the interest in Australian Coal Mines
Sep. 21. 2007
Marubeni today announced that through its wholly owned subsidiary Marubeni Coal Pty. Ltd. (hereinafter called “M-Coal”), it has completed the purchase of 1/3 shares of Queensland Coal Mine Management Pty Ltd (hereinafter called “QCMM”) which holds 70% interest in the Jellinbah East Coal Mine and Lake Vermont Coal Mine through the acquisition of Ingatatus Pty Ltd. Marubeni’s commercial objective in buying the shares in QCMM (about 40 billion yen which includes the future expenditure for expansion and development) is to increase its interest in the Jellinbah East Coal Mine by 15% to 38.33% and to increase its interest in the Lake Vermont Coal Mine by 10% to 33.33%.
Both coal mines have enormous open cut coal reserves, and are highly competitive in the operating cost and product coal quality. Jellinbah East Coal Mine currently produces PCI coals at approximately 4.0Mtpa for the international steel industry. Lake Vermont Coal Mine is planned to achieve its first railing of product coal in the first quarter of 2009, and will produce coking and PCI coals with low ash and low sulphur at approximately 3.0 to 4.0Mtpa.
Through the acquisition Marubeni will participate in the coal mine management more deeply and aggressively as the major owner of Jellinbah East Coal Mine and Lake Vermont Coal Mine with a view to expanding the production to 10Mtpa or more in the future, which will contribute to the stable coal supply for customers in Asia, South America and other areas.
After the acquisition, Marubeni will have total equity coal production capacity of 6.0Mtpa, and will become one of the top PCI coal trading companies