Marubeni, Sojitz to Double Lake Vermont Coal Output Capacity

Japanese major trading firms, Marubeni Corporation and Sojitz Corporation announced on Friday they double the coking coal production capacity of Lake Vermont Mine in Queensland, Australia to 8 million tonnes per year by 2013. They and the joint venture partners of Jellinbah Group of Australia and American Metals & Coal International of USA invest about 200 million Australian dollars for the expansion. With the additional capacity based on the rich resource, they supply high quality coal stably to buyers in Japan, Asia and South America.

The open cut mine produces annual 4 million tonnes of hard coking coal and pulverized coal injection coal now. The expansion is started in 2011 to add coal handling and preparation plant. The project plans to produce 6 million tonnes of coal in 2013 increasing the production to 8 million tonnes in 2014. After the expansion, the project plans to produce coal for more than 20 years based on the rich reserve.

Marubeni Corporation holds 33.33% interest in Lake Vermont including indirect interest. With the expansion, the firm’s equity coal annual production capacity increases from current 5.7 million tonnes to about 7.5 million tonnes. Equity coal of Sojitz Corporation, which has 10% interest in the mine, increases from 7 million tonnes to 7.4 million tonnes.

Lake Vermont mine started the operation in January 2009 reaching full capacity operation in short period of time. The reserve is 184 million tonnes while the project has another around 54 million tonnes of reserve for adjacent t tenements. Jellinbah Group, in which Marubeni has one third of share, holds 70% interest in the mine with 10% share each by Marubeni Corporation, Sojitz Corporation and AMCI.