Nippon Steel Corp acquires stake in Mozambican coal project

28 October 2010

Tokyo, Japan, 28 Oct – Nippon Steel Corp., Japan’s biggest steel manufacturer, is to acquire a 23.3 percent stake in a coal mining project in Mozambique, the group announced in a communiqué released in Tokyo.

The value of the NSC’s interest was not disclosed. It thus joins its affiliate Nippon Steel Trading (32 percent), which holds a 33.3 percent stake in the Revuboe project in Mozambique’s Tete province.

South Korea’s Posco group, the number one steelmaker in that country, has an 8 percent stake, while the rest of the capital is held by Australian investment company Talbot Group Holdings, the note released on Wednesday indicates, adding that a feasibility study will be conducted before starting operations.

The partners in the Revuboe project, which will cost between US$500 million and 600 million to develop, should have the economic feasibility study ready in late 2011 so that production can begin in 2014 or 2015.

This investment should annually guarantee Nippon Steel about 1.5 million tonnes of the 5 million tonnes of coal the mine is expected to produce, increasing the group’s self-sufficiency in this raw material from 25 to 30 percent. (macauhub)