NSC to purchase 2.5% stake in Canadian mine
According to recent news in the market, Japanese steel producer Nippon Steel Corporation (NSC) has reached an agreement with Elk Valley Coal Partnership (EVCP), Elkview coal mine's operator, to purchase 2.5% stake in the mine in British
Colombia,
Canada.
NSC will pay Yen 2.5 billion ($24 million) for the 2.5% stake. Moreover, in line with the deal NSC will purchase 29 million tons of coal from Elkview and another mine for a 10-year period.
The deal is expected to be completed in mid-February. With this deal, NSC will secure stable source of coal.
Apart from NSC, South Korean steel giant POSCO has reportedly reached an agreement with the mine's operator to buy 2.5% stake in Elkview. However, the price POSCO will pay for the stake has not been announced.
EVCP plans to expand coal capacity of the mine to 7 million tons by 2007 from the current capacity of 5.6 million tons with the money it will receive from NSC and POSCO.