The largest single coking coal mine has entered the development stage

Itochu Corporation has reached an agreement and signed relevant contracts with aMCI, POSCO and Jaz ventures, L.P., shareholders of NCR, on the acquisition of 25% shares in north central resources LLC. NCR owns and develops 100% of Longview coking coal mine in West Virginia. In order to achieve the goal of putting into production by the end of 2022, Longview coking coal project has entered the development stage, with a total cost estimated at US $450 million (about RMB 3.15 billion). Itochu and other shareholders will pay corresponding fees in stages according to the progress and shareholding ratio. The coal mine is expected to produce 4 million tons per year. After completion, it will become the largest single coal coking coal mine in the United States, producing high-quality coking fat coal with great cost competitive advantage. In addition, aMCI, Jaz and Itochu will jointly set up a sales company to sell the coal mine products exclusively to the world. In addition, Itochu became the global exclusive sales agent of Vulcan mine, a high-quality main coking coal mine in 2019.

Located in the middle of Bowen basin in Queensland, adjacent to the Saraji project, the coal mine is a famous main coking coal production area in Australia. Vulcan is initially expected to produce 400000 to 1400000 tons per year, and then gradually increase production to 6000000 tons. The high quality main coking coal products are mainly supplied to end users in Asia and the Pacific. As a well-known comprehensive trading company in Japan, Itochu began to invest in coking coal resources as early as a few years ago, strengthening the global production layout and sales network. Now holds several coking coal projects including the above Longview coal mine in the United States. For example, the main coking coal project in Oak Creek, the semi soft coking coal project in Ravensworth north, the low ash and high quality gas coal project in maules Creek and the SMM high quality gas and fat coal project in Indonesia. The annual capacity of its coking coal production project is more than 25 million tons. As the top priority of its overseas sales market, China will undoubtedly continue to increase its development and investment in 2020, and strive to steadily increase its market share in China's coking coal supply.