- Region: North America
- Energy and Natural Resources
- Overseas Investment Loans
August 28, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today, a loan agreement totaling up to 261 million U.S. dollars (JBIC portion) with JX Nippon Oil & Energy Corporation(JX Energy). The loan is cofinanced with private financial institutions (Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Sumitomo Mitsui Trust Bank, Limited).
- This loan will finance JX Nippon Oil & Energy (Australia) Pty. Ltd., which is a 100% affiliated company of JX Energy, for acquiring 25% equity of a business company that owns mining areas including the Susuka and the Sukunka (the project area). In this project, the coking coal will be produced from the coal mine in the Peace River Coal field located in the province of British Columbia. The production size after 2022 is expected to be about 10 million tons/year. A part of the coking coal produced will be supplied to Japanese blast furnace steel makers over the long term.
- 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 the necessary amounts of coking coal at appropriate prices. The mining area of this project is a newly developed mining area and is expected to produce high quality coking coals. Furthermore, Canada where the mining area of this project is located, has been steadily supplying coals to Japan for a long time, and this project has major significance in securing a stable supply of coking coal to Japan.
- JBIC will actively support further development and acquisition of energy resources and mineral resources by Japanese companies.