- Region: Oceania
- Energy and Natural Resources
- Overseas Investment Loans
March 27, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a loan agreement amounting up to 1,540 million Australian dollars (JBIC portion) with MC Finance Australia Pty Ltd (MCFP), an Australian subsidiary of Mitsubishi Corporation. The loan is co-financed with private financial institutions.
- The loan is intended to finance, through MCFP, the development of the Caval Ridge Coal Mine located in the northern Bowen Basin in Queensland, Australia undertaken by Mitsubishi Development Pty Ltd. The annual production of premium hard coking coal at Caval Ridge Coal Mine is expected to be 5.5 million tons from the year 2016, while the quality of premium hard coking coal is highly appreciated, as the quality is comparable to coal produced at the adjacent Peak Downs Coal Mine.
- It has become a challenge to secure the necessary amount of hard coking coal, indispensable steel-making material, and its reserves, because they are limited on the global level. The premium hard coking coal produced at Caval Ridge Coal Mine, as well as a coal produced at Peak Downs mine, is expected to be supplied to blast furnace steel manufactures and coke makers in Asia, including Japan, and Europe. Thus, this project, which involves a Japanese company and is expected to supply a certain amount of premium hard coking coal to Japanese blast furnace steel manufactures, has major significance in securing a stable supply of premium hard coking coal to Japan.
- JBIC will actively support further development and acquisition of energy resources and mineral resources by Japanese companies.