Nippon Steel, JFE Steel to Acquire Interest in Australian Coal Mine; Aiming for Cost-Cutting and Sustainability

The Yomiuri Shimbun

16:42 JST, August 22, 2024

Nippon Steel Corp. and JFE Steel Corp. announced on Thursday they will acquire interest in a coal mine in the state of Queensland, Australia. Currently, Australia’s Whitehaven Coal Ltd. holds complete stake ownership of the mine.

While Nippon Steel will acquire a 20% interest in the mine for $720 million, or about ¥104.5 billion, JFE will acquire 10% for $360 million, roughly ¥52.2 billion.

In blast furnace production, steel is made through reactions between iron ore and coking coal. The companies will aim to cut costs and reduce carbon dioxide emissions by ensuring a stable, long-term supply of high-quality coking coal.