As per the company’s press release, Japanese steelmaker Nippon Steel Corporation through its Australian subsidiary has entered into an agreement together with its Japanese partners to acquire a part of the mining interests to the Grosvenor Coal Mine from Anglo American, one of the leading mining companies. The Grosvenor Coal Mine is located in the state of Queensland, Australia. The value of Nippon Steel’s acquisition is AUD 86.4 million (approximately JPY 6.6 billion).
The Grosvenor coal mine is engaged in the production of high quality coking coal and is adjacent to the Moranbah North Coal Mine, in which Nippon Steel is currently participating alongside Anglo American and the Japanese partners. Both the mines share same surface facilities and this transaction will help to achieve further improvements in operational efficiency and increase production through integration.
Nippon Steel also mentioned that the company will continue its efforts to secure medium- and long-term stability in raw-materials procurement, while continuing to strengthen ties with the producers of raw materials for iron- and steelmaking in the future.
Nippon Steel is expected to have production loss of about 40,000 tonnes this fiscal year (Apr’19 to Mar’20) due to production stoppages at its Kimitsu Works near Tokyo, and Nippon Steel Nisshin’s Kure Works in Hiroshima.
The company suspended operations at Kimitsu after a chimney at its gas-treating facility collapsed due to Typhoon Faxai, which hit eastern Japan in September, the repair of which is being undertaken and is expected to resume operations in Jan’20. Whereas company’s Kure No.2 steelmaking plant has been closed due to a fire which occurred on 30 Aug’19 and its operations are expected to start only after the ongoing fiscal year. The total losses from Kimitsu Steelmaking stoppage is expected to reach Yen 25 billion (USD 229.23 million) and those for Nisshin’s Kure to be Yen 15 billion.
Leave a Reply