ITOCHU Corp Develops Coal Mine with Coal Works in New South Wales

ITOCHU Corporation announced on Wednesday IMEA, ITOCHU Corp’s subsidiary in Australia, agreed with Coal Works, Australian mining company, in development of Vichery South coal mine in New South Wales. IMEA acquired 29% equity in the project with A$ 5 million investment for the mine’s initial prospection. The mine is expected to start production of soft coking coal and fuel coal at 200-300 million tonnes per year in 2013. ITOCHU Corp has an exclusive distributorship of the products to the entire world and plans to sell fuel coal mainly to Asia.

IMEA and Coal Works signed a memorandum of understanding for joint exploration of the mine in February 2010. IMEA acquired a right to increase its equity in the project up to 49%. IMEA judges options to increase the equity with the result of exploration by mid 2014, eyeing the mine development after feasibility study.