Sojitz’s Coal Equity to Increase by 9% to 4.7MT in F 2010

Sojitz Corporation, Japanese major trading house, is expected to hold coal equity of 4.7 million tonnes at the end of fiscal 2010 ending in March 2011, increasing by 400,000 tonnes from fiscal 2009. The main factor is that Moolarben coal mine in Australia started thermal coal production. Moolarben’s full operation and capacity expansion of the other coal mines in Australia and Indonesia will contribute to Sojitz’s equity increase. The firm eyes additional equity acquisition and brings up the total coal equity to approximately 10 million tonnes until 2015.

Moolarben coal mine started shipment in May 2010, of which Sojitz holds 10% interests. Sojitz’s equity in the mine equals to 320,000-330,000 tonnes in fiscal 2010 and 800,000 tonnes in fiscal 2011. The mine is expected to enter full production of 10 million tonnes per annum in fiscal 2012 and Sojitz’s equity would reach 1 million tonnes.

Sojitz also holds 10% interests of Lake Vermont mine in Australia which produces coking coal at 4 million tonnes per year and 15% interests of Jellinbah East mine in Australia which produces coal for pulverized coal injection at 4 million tonnes per year. These mines are scheduled to double the outputs within 2-3 years. As to Berau mine in Indonesia producing thermal coal at 15 million tonnes per year, of which Sojitz holds 10% shares, the mine is planned to expand the output to 17 million tonnes in fiscal 2010 and 30 million tonnes within a few years.

Sojitz’s coal equity will reach 8.9 million tonnes after these expansions from estimated 5.4 million tonnes in fiscal 2011. In addition, the firm aims to acquire new coal mine interests in Indonesia and Australia. As total, the firm tries to realize 10 million tonnes of equity in 2015.

Sojitz presently deals coal at approximately 18 million tonnes per year. The firm has steadily increased overseas trade. The firm catches up with coal demand growth from electric power and steel making industries, and builds up the profitability.