JBIC Signs Loan Agreement with VINACOM Up to US$ 150M

Japan Bank for International Cooperation (JBIC) announced on Tuesday the bank signed a loan agreement with Vietnam National Coal – Mineral Industries Group (VINACOMIN) up to US$ 150 million (13.9 billion yen). The agreement eyes the stable supply of anthracite coal from VINACOM to Japan. This is the co-finance by JBIC and Sumitomo Mitsui Banking Corporation.

JFE Steel and Sumitomo Metal Industries will conclude long-term contracts with VINACOM to purchase anthracite coal and import anthracite coal during the loan period.

VINACOM is a national enterprise wholly controlled by Vietnamese government to produce and sell coal and mineral resources as well as to operate coal-fired power stations. The enterprise is one of the world largest suppliers of anthracite coal.

Japanese integrated steel makers and other industries import high grade anthracite coal from Vietnam and China. China is recently shifting to a net import country of coal. Vietnam’s supply position is being more important than ever.

JBIC will enhance cooperative relationship with Vietnam including VINACOM and support stable procurement and development of raw materials for Japanese users.