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TOKYO — JFE Steel Corporation
and JFE Shoji Trade Corporation have reached
a basic agreement with American Metals &
Coal International, Inc. ("AMCI")
to acquire rights and interests in two Australian
coal mines owned by AMCI. JFE Steel and AMCI
have also reached a basic agreement on a long-term
coking coal purchasing contract.
JFE Steel and JFE Shoji Trade, which have
long enjoyed a mutually beneficial relationship
with AMCI through their dealings in American
and Australian coals, have decided to participate
in and provide support for AMCI's coal-mining
operations. Their goals are:
| 1) |
To ensure stable, long-term
supplies of quality coking coal for JFE Steel
|
| 2) |
To further strengthen their
relationship with AMCI through the acquisition
of rights and interests |
| 3) |
To contribute to the stabilization
of the coking coal market by participating
in and providing support for coal development
and expansion |
Outline of basic agreement
1. Carborough Downs Coal
Mining Project*1
| • |
Acquisition of rights and
interests in the project (JFE Steel 2.5%,
JFE Shoji Trade 2.5%) and investment in coal
development |
| • |
Long-term purchasing contract
for coking coal produced by the project |
| |
| Term: |
10 years (JFE Steel has option
to extend) |
| Total volume: |
Approximately 6 million tons |
|
| *1 |
Underground mine project
in Queensland, Australia. Coal from the mine
is notable for its low ash content. Plans
to commence producing coal in fiscal year
that begins in April 2005. |
2. Glennies Creek Coal Mine*2
| • |
Acquisition of rights and
interests in the mine (JFE Steel 2.5%, JFE
Shoji Trade 2.5%) and investment in the expansion
of the mine |
| • |
Long-term purchasing contract
for coking coal produced by the mine |
| |
| Term: |
10 years (JFE Steel has option
to extend) |
| Total volume: |
Approximately 6 million tons |
|
| *2 |
Underground mine in New South
Wales, Australia. Coal from the mine is notable
for its high fluidity. Production began in
1999. Annual production is currently 1.7 million
tons per year, with plans to expand to 2.8
million tons. |
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