JFE Steel said on Thursday it would spend more than $US550 million ($A610.64 million) to buy a stake in an Australian coal mine as Japan vies with fast-growing emerging nations for a steady supply of raw materials.
JFE Steel Corp announced it would acquire a 20 per cent interest in the Byerwen Coal project from QCoal Pty Ltd. The mine, in Queensland, is expected to start production in 2012.
The two companies also agreed to a long-term supply deal for JFE Steel to receive coal from the project.
JFE, Japan's second-largest steel maker, said its total investment would be Y50 billion ($A617.97 million), including spending related to the mine's facilities.
The group said it aimed to get the project operating "as soon as possible in order to secure its own stable supply of good-quality coking coal over the long term and help stabilise the world's coking coal market".
Japan's steel makers have been seeking stable sources of raw materials by buying stakes in mines as the country jostles with other regional economies such as China and India for commodity supplies.
Anglo-Australian mining giant Rio Tinto said Thursday it had secured its first-ever iron ore sale to India, calling it a "ground-breaking" development.
Source: Sydney Morning Herald
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