Japanese steel producer Nippon Steel Corporation has announced that it has signed an agreement with Australia-based miner Whitehaven Coal Limited (WHC) to acquire a 20 percent interest in the Blackwater coal mine in Queensland, Australia, for $720 million. The acquisition is expected to be completed in the first quarter of 2025. In addition, Nippon Steel has entered into long-term coal offtake rights agreement with WHC.
By investing in Blackwater coal mine, Nippon Steel will secure a long-term stable supply of coking coal required for its technologically advanced coke production. The investment is expected to have a minor impact on the consolidated financial result for this fiscal year ending March 31, 2025.
In addition, Japanese steelmaker JFE will acquire a 10 percent stake in the Blackwater mine for $360 million.
Blackwater coal mine has an annual production capacity of 10.1 million mt.