Nippon Steel Corp. and JFE Steel Corp. have announced their plans to acquire a stake in a coal mine located in Queensland, Australia. Currently, the mine is fully owned by Australia’s Whitehaven Coal Ltd.
Under this agreement, Nippon Steel will acquire a 20% interest in the mine for $720 million (approximately ¥104.5 billion), while JFE will acquire a 10% interest for $360 million (roughly ¥52.2 billion).
The production of steel in blast furnaces involves the reaction between iron ore and coking coal. By securing a stable and long-term supply of high-quality coking coal, both companies aim to reduce costs and minimize carbon dioxide emissions.
This move comes as part of their efforts to enhance sustainability and efficiency within their operations. By investing in this coal mine, Nippon Steel and JFE are taking proactive steps towards ensuring an uninterrupted supply chain for their steel production processes.
Australia is known for its abundant reserves of high-quality coking coal, making it an attractive destination for steel manufacturers seeking reliable sources of raw materials.
The acquisition of interests in this Australian coal mine will not only strengthen Nippon Steel’s and JFE’s positions within the global steel industry but also contribute to their overall business strategies focused on sustainability and environmental responsibility.
By securing access to high-quality coking coal through this investment, both companies are positioning themselves well for future growth opportunities while simultaneously reducing their environmental impact.
This strategic move highlights the ongoing commitment of Nippon Steel Corp. and JFE Steel Corp. towards sustainable practices within the steel manufacturing sector.