Nippon Steel, JFE Steel, Vale to Expand Carborough Downs Mine

Nippon Steel and JFE Steel announced on Wednesday they agreed with Vale, POSCO and Tata Steel to expand Carborough Downs coal mining joint venture in Queensland, Australia for A$ 400. They expand the annual output capacity from current around 500,000 tonnes to maximum 4.4 million tonnes after the introduction of one of the largest longwalls in Australia. The steel makers try to improve the stable procurement under worldwide tight supply. They researched coal quality and geotechnical condition at the mine, which started small scale operation in August 2006, for larger scale operation. They start working to introduce the longwall in May starting the expanded operation with maximum 300 meters width, 1,500 meters length and 400 meters depth by July 2009. With the expansion, the mine can produce averaged 3.7 million tonnes of coal annually and produce maximum 4.4 million tonnes in around 2011. Vale controls 80% of Carborough Downs mine with 5% share by Nippon Steel, POSCO and Tata Steel each and with 2.5% share by JFE Steel and JFE Shoji Trade Corporation. They pay the investment along with the share. Nippon Steel and JFE Steel have 10 years contract to purchase maximum 20% of the production from Carborough Downs mine.