Japanese steelmaker Nippon Steel Corporation has announced that it has signed an agreement to acquire a five percent interest in UK-based mining giant Anglo American’s Grosvenor coal mine, located in Queensland, Australia, in exchange for JPY 6.6 billion ($60.44 million).
The company said this acquisition is a part of its strategic policy measures for raw material purchases by investing in mines. Nippon Steel said it will continue strengthening ties with the producers of raw materials for steelmaking in the future.
The Grosvenor coal mine has been producing high quality coking coal since 2016 and is adjacent to the Moranbah North coal mine, in which Nippon Steel is currently participating alongside Anglo American and Japanese partners, said the company in its statement. The Grosvenor coal mine uses the coal processing infrastructure of Moranbah North coal mine and Nippon Steel has the same amount of interest in both mines. Therefore, managing both mines, Nippon Steel will increase its operational efficiency and production.