Nippon Steel & Sumitomo MetalCorporation: Developing New Mining Areas in the Bulga Coal Mine in Australia

nssmcNippon Steel & Sumitomo Metal Corporation (Representative Director & President: Kosei Shindo, hereinafter “our company”), having reached agreement with the Bulga Joint Venture (hereinafter “Bulga JV”) partners including a leading natural resource concern, Glencore plc. (headquartered in Baar, Switzerland, CEO: Ivan Glasenberg) to commence development of new mining areas (open-cut and underground operation) at the Bulga coal mine*1 in  New South Wales, Australia, has now obtained a mining license from the New South Wales Government departments. With a total investment of about A$704 million (about 70.4 billion yen*2), construction work for the new development project is planned to commence this year, for the start of coal production in the open-cut mine in 2016 and in the underground mine in 2018. The Bulga coal mine, in which our company has a 12.5% interest through the Bulga JV, is a major coal mine in Australia, producing about 11 million tons of saleable coal a year, by both open-cut and underground operation, and supplying coking coal and thermal coal. Our company has consistently supported the mine since joining the J/V in 1993, with increasing interest share from original 10% to current 12.5% in the meantime.

Meanwhile, with the approaching their ends, in 2017, of both the present mining areas in open-cut and underground operation, respectively accounting for about 55% and 45% of the Bulga mine’s total production, Bulga JV has decided to start developing new areas as successors to them.

By new mine development, the Bulga coal mine will be able to maintain, even after 2018, a production level of 11 million tons of saleable coal a year.

Our company, with intent on taking strategic policy measures for raw materials purchasing, including investments in mines, will continue efforts to secure medium- and long-term stability in raw-materials procurement, while continuing to strengthen ties with the producers of raw materials for iron- and steelmaking in the future.

*1:    Operated by Bulga JV, which is an un-incorporated joint venture formed by Australians subsidiaries of each company. Bulga coal mine is located about 150km northwest from Sydney.

*2:    Each party in the Bulga JV shall bear in proportion to its interest percentage respectively.

Outline of the Bulga Coal Mine and the development of the new area

1. Location

2. JV Structure  

※ 100%subsidiary

3.Production         About 11 millon ton a year (coking coal & thermal coal)

4. The new development plan
                      (1)Open cut operation
                        Deepening and expansion of the open cut area
                     (2)Underground operation
                        Relocation from the current area ”Blakefield South” to a neighboring 
                        area ” Blakefield North” 


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