Nippon Steel to Develop Mozambique Coal Mine in 2012

31 October 2010 (Last Updated October 31st, 2010 18:30)

Nippon Steel Corporation has said that it will start the joint development of a coal mine in Mozambique with three other firms in 2012. The $600m hard-coking coal mine will have produce five million tons a year, and is scheduled to begin operations in 2014. Nippon Steel is set

Nippon Steel Corporation has said that it will start the joint development of a coal mine in Mozambique with three other firms in 2012.

The $600m hard-coking coal mine will have produce five million tons a year, and is scheduled to begin operations in 2014.

Nippon Steel is set to obtain 1.7 million tons of high-grade hard-coking coal a year from the 23.3% stake it has acquired from Nippon Steel Trading.

The acquisition of Mozambique project will also increase Nippon's self-sufficiency rate in coking coal from 25% to 30%.

The feasibility study of the project is expected to be complete by the end of 2011, reports Reuters.

Other partners in the project include Talbot Group, with a 58.9% stake and POSCO, with an 8% stake.