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.