Nippon Steel, JFE Steel to invest $1bn in Australian coal mine

TOKYO -- Japan's Nippon Steel and JFE Steel announced Thursday that they will invest a total of $1.08 billion in a coal mine owned by Australian coal producer Whitehaven, aiming to secure long-term supplies of high-quality coking coal.

Nippon Steel will buy a 20% stake in the Blackwater coal mine for $720 million, while JFE Steel will invest $360 million for a 10% interest. The Blackwater mine is an open-cut mine in Queensland, on the east coast of Australia. It produces around 12 million to 13 million tonnes a year of run-of-mine coal.