- Region: Oceania
- Energy and Natural Resources
- Overseas Investment Loans
February 27, 2012
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed today a loan agreement totaling up to 259 million U.S. dollars (JBIC portion) with Mitsui Kestrel Coal Investment Pty Ltd (MKCI), an Australia-based affiliate of Mitsui & Co., Ltd. The loan, co-financed with a private financial institution, is extended to promote a project for securing and developing energy and natural resources.
- This loan will finance MKCI to develop a new mining block in the Kestrel Mine, located south of the Bowen Basin in Queensland, Australia. The quality of coal produced by the Kestrel Mine is rated highly by Japanese blast furnace steelmakers for having good property as coking material. While the existing mining blocks currently produce about 4 million tons of coal per year, the production from these blocks will be coming to an end in 2014. Developing a new mining block is projected to produce about 6.5 million tons of coal per year at its peak.
- The amount of coking coal reserves is limited on the global level, even if it is an essential raw material for making steel. Thus, it is a challenge to secure its necessary amount at appropriate prices. The coking coal produced in the present mining block has been sold mainly to blast furnace steelmakers and coke manufacturers primarily in Japan, as well as Asia and Europe. It is expected that coal products from the new mining block will continue to be sold to Japanese enterprises. The project thus has significant implication for securing stable procurement of coking coal for Japan.
- JBIC will continue to provide positive support for the development and acquisition of raw materials by Japanese business firms.