Nippon Steel group & Sumitomo Metal Corp granted Mozambican mining license

5 April 2013

Nippon Steel Trading Co., a subsidiary of Japanese group Nippon Steel & Sumitomo Metal Corp, has been awarded an exploration license for the Revuboé project, in Tete province, Mozambique, the group said in a statement issued Thursday in Tokyo.

According to the statement, the group, which is Japan’s biggest steel producer, plans to start developing the mining project by the end of the year so that commercial exploration can begin in 2016.

The Minas do Revuboé coal project in Tete province has estimated reserves of 1.4 billion tons and an estimated annual production of 5 million tons of coking coal.

The Japanese group plans to import around 1.7 million tons of coking coal from Mozambique, which is around 6 percent of annual coal imports.

This week the AngloAmerican group announced it had dropped out of buying a 58.9 percent stake in the Minas do Revuboé project for US$555 million.

The transaction depended on some conditions that were not met following nine months of negotiations, and “a decision was made not to go ahead” with the deal to buy the stake, which was put up for sale following the death of its previous owner Australian millionaire Ken Talbot.

As well as Nippon Steel Trading, the Minas do Revuboé project has South Korean group Posco as a partner. (macauhub)