Nippon Steel to Start Revuboe Coking Coal Project in 2012

Nippon Steel tries to start development of in Revuboe coking coal project in Mozambique as soon as possible in 2012 when the project is allowed by conditions including the mining right. With the mining right, the firm starts the development with POSCO of South Korea and other partners to start operation with annual 5 million tonnes of coking coal output in 2014-15. The firm decided to realize the project to diversify the coal source from current heavy dependant on Australia with weather condition risk along with higher captive coal rate under high coal price.

The project submitted the mining right application in November 2010. The project is finishing feasibility study for the development. Nippon Steel expected earlier start than original time schedule but the project is still waiting the mining right. The firm tries to get the right as early as possible through support by Japanese government.

Australian resource company, Talbot Group controls 58.9% of the project t with more than 1 billion tonnes of resources while Nippon Steel has 23.3% interest with 10.0% share by Nippon Steel Trading and 7.8% share by POSCO. They try to develop the project jointly.

Infrastructure development is a key for coal projects in Mozambique. Vale of Brazil, which started coking coal production in 2011, develops rail line to Nacala port with deep water and the port facility. Local coal association eyes more than 100 million tonnes of coal export in and after 2025 and some concepts are occurring for new rail and port development.