Marubeni Takes 1/3 Shares in Queensland Coal Mine

Marubeni, Japanese major trading house, announced on Friday that the firm took one third of the shares in Queensland Coal Mine Management (QCMM). The purchasing price was about 40 billion yen including the future expenditure for expansion and development of the coal mines. Marubeni increases the right for QCMM’s 2 coal mines and doubles its worldwide coal rights to 6 million tonnes per year. Marubeni is expected to hold 7.5 million tonnes coals in 2009, mainly in Australia, when a new coal mine is developed. Marubeni’s subsidiary, Marubeni Coal has completed the acquisition of Ingatatus in Australia, which has 1/3 shares in QCMM. QCMM holds 70% interests in the Jellinbah East Coal Mine and Lake Vermont Coal Mine, both of which are in Queensland. Marubeni increased its interests in the Jellinbah East Coal Mine from current 15% to 38.33% and to in the Lake Vermont Coal Mine from current 10% to 33.33%. Jellinbah East Coal Mine supplies high quality coal for pulverized coal injection (PCI) at 4 million tonnes per annum to major steel makers in the world. Lake Vermont Coal Mine will start operation of an open casting mine in 2009 and produce coking coal and PCI coal at 3-4 million tonnes per annum. Marubeni will develop these mines and will increase the output to 10 million tonnes per year. Marubeni’s metal resource department has advanced investment of 170 billion yen for 2 years by fiscal 2008 ending March 2009 and planed to double its rights in world coal mines until fiscal 2010. World coal supply is rather tightening due to the demand expansion for energy fields or steel industry. Marubeni will increase the profit by the expansion of the coal business with synergy effect of trade.