The firm will found the new joint company with BHP Billiton, the ratio of BHP Billiton 68%, JFE steel 20%, Itochu Corporation 6.4%, and 5-6% of Mitsui Corporation, in July, and will develop the non-exploited mining area of Yandi "W-4 mining area". The new mining area has the 110 million tonnes for the amounts of economical good mining, and can operate them for 11 years.

Yandi has an iron ore floor with an amount of good mining of 1 billion tonnes which consists of about twenty mining areas, and produce at 40 million tonnes per year in 3 and 4 mining area that the ratio of BHP Billiton 85%, 8% of Itochu, and 7% of Mitsui.

The new mining area where JFE Steel takes part in the planning is expected to turn into the prime mining area of Yandi. JFE Steel purchase it at 12.5 million tonnes from BHP Billiton on the actual result in the 2003 fiscal year, increases quantity, and secures 1/3 of necessary quantity. JFE Steel has secured 85-90% of iron ore necessary quantity under the treaty of a three companies of major companies of CVRD, Rio tent, and BHP Billiton in long period of time. JFE Steel carry out some measure which secures an iron ore stably over a long period of time, such as developing a new mine together with CVRD in Brazil. In coking coal, JFE Steel is planning to pull up the ratio of the long-term contract which is only about 50% of the 25 million tonnes amount of annual supply within 1 or 2 years to 70%. The firm advance to raise the material purchase of the stability and efficiency, combines with the investment to Chinese ferroalloy, and stable secure over a long period of time of a materials transport ship.

JFE Steel