JFE secures 10-year coal contract from Canada

JFE secures 10-year coal contract from Canada

Japanese steelmaker JFE Steel Corporation and Canadian coal miner Elk Valley Coal Corporation (EVCC) have reached a basic agreement on a long-term coking coal sale and purchase contract. Under the terms of the contract, JFE will purchase 2.5 million tons of coking coal annually over tens year beginning with the 2006 coal contract year. JFE and EVCC also agreed to enter into a strategic partnership, and will cooperate with each other to strengthen mutual trust. These agreements are subject to finalization of a detailed sales contract and a letter of intent concerning future cooperation, which is expected to be completed by December 2005.