Xstrata forms Canadian metallurgical coal JV with Japan’s JX Nippon

Australian coal producer Xstrata and Japan's JX Nippon Oil & Energy Corporation (JX Nippon) has announced that they have established a joint venture comprising metallurgical coal assets in the Peace River Coalfield in Western Canada. 
 
JX Nippon acquired 25 percent interest in Xstrata Coal British Columbia through its Australia-based subsidiary JX Nippon Oil & Energy Australia Pty Ltd, for a consideration of $435 million. The Canadian metallurgical coal assets of Xstrata include First Coal Corporation tenements, the Lossan coal deposit, and the Sukunka coal deposit whose acquisition completed on March 13.
 
Xstrata Coal has combined the project formerly known as Lossan with the neighboring First Coal tenements to create an expanded open cut coal project, now known as the Suska coal project. According to technical studies, the Sukunka and Suska projects have the potential to produce up to approximately 9.5 million mt per year. 
 
JX Nippon stated that this joint venture with Xstrata will enable to company to expand into hard coking coal. On the other hand, Xstrata said that the consolidation of the Canadian First Coal, Lossan and Sukunka assets will provide Xstrata with further exposure to metallurgical coal.