Japan-based Nippon Steel Corporation has announced that it has acquired a 20 percent stake in Elk Valley Resources Ltd. (EVR), a subsidiary of Canadian mining firm Teck Resources. As a result of the transaction, EVR has become an affiliate of Nippon Steel.
In addition, Nippon Steel has entered into an offtake rights agreement with EVR for the purpose of long-term and stable procurement of steelmaking coal. Stable procurement of high-quality steelmaking coal will contribute to the company’s decarbonization of the steelmaking process and diversify the company’s business portfolio to be more resilient to the changes in the external business environment.
In February last year, the company signed an agreement to acquire up to 10 percent of shares in EVR, as SteelOrbis previously reported.
