Japanese steelmaker JFE Steel Corporation has announced that it has agreed with Australia-based coal mining company QCoal Pty Ltd to commence construction work on the Byerwen Coal Project in Queensland, Australia, with the aim of beginning coal shipments in early 2018. The agreement came after Queensland state government last month granted mining leases to Byerwen Coal Pty Ltd, a joint venture company between JFE Steel and QCoal.
Once operational the Byerwen mine, which is located in the northeast of Queensland, is expected to produce up to 10 million mt of hard coking coal per year. The size of the mine and favorable conditions for large-scale open-cut mining will help to ensure a cost-competitive product.
JFE Steel also stated that, together with QCoal, it will work to develop the mine and provide a stable, long-term supply of coking coal, which is expected to help reduce volatility in the coking coal market.