Japanese group Nippon Steel Corp. is in the final stages of negotiating coal mining rights with the Mozambican government, Japanese news agency Jiji reported in Tokyo Monday.
According to the news agency, the concession, which will be in the Revuboé region in Tete province, will provide the Japanese group with a steady supply of coking coal, which is essential for steel production.
After being granted exploration rights, Nippon steel plans immediately to start on the structures needed to start exploring the coal deposits in order to begin mining coking coal in 2014 or 2015.
This project is expected to secure 7 percent of the group’s coking coal needs, which currently stand at 20 million tons per year.
Jiji also said hat the Japanese Economy, Trade and Industry minister, Yukio Edano, was expected to visit Mozambique soon as part of this process. (macauhub)