Australia's Northern Energy Corporation Limited announced on April 22 that it has signed a life of mine offtake agreement with Henan-based China steelmaker Xinyang Iron and Steel Group Company Ltd for 65 percent of output from its Maryborough hard coking coal project.
Meanwhile, Xinyang Steel will obtain a 12.7 percent stake in Northern Energy Corporation Limited for RMB 146 million ($21.4 million) and will also be offered a seat on the board of the company.
In 2009, Xinyang Steel produced 1.8 million mt of pig iron, 1.5 million of crude steel and 1 million mt of finished steel.
Northern Energy Corporation Limited is an Australian Stock Exchange-listed company with coal projects in Queensland and New South Wales, Australia. The company has interests in a portfolio of coking and thermal coal projects being progressed towards development.