Sonoma Coking Coal Mine Starts Operation

Australian Sonoma coking coal project, in which JFE Shoji Trade Corporation has interest, held opening ceremony on Friday, starting the operation officially. JFE Steel purchases annual 500,000 tonnes of high quality coking coal through the long term contract from the annual 3.4 million tonnes of open cut mine in Queensland. JFE Steel tries to stabilize the coking coal procurement under tight supply by increasing the purchase rate from mines with interests by the group to 15%. JFE Steel’s president Hajime Bada and JFE Shoji’s president Mikio Fukushima attended the ceremony with Queensland’s premier Anna Bligh, Japanese ambassador to Australia Takaaki Kojima, Q Coal’s president Chris Wallin, Cleveland-Cliffs’ chairman Joseph Carrabba and China Steel’s president Y.C. Chen. The mine started the production in February and the first ship with 40,000 tonnes of coal arrived at Kurashiki Area of West Japan works of JFE Steel in March. The mine with around 71 million tonnes of reserve continues 14 years operation producing 4 million tonnes per year at the peak. Q Coal of Australia and Cleveland-Cliffs have 45% share each in the mine with 5% each share by JFE Shoji and China Steel. JFE Steel group has coking coal interests in Carborough Downs and Integra mines in Australia. The firm tries to increase the procurement from mines with interests by the group. The firm moved the Australian office to Brisbane, Queensland in April to seek another opportunity for potential investment for competitive coking coal mine.