Nippon Steel is actively seeking stakes in coking coal and iron ore mines to ensure stable supplies of key raw materials and reduce the potential impact of price fluctuations. Recently, Nippon participated in a major deal predominantly led by Glencore. The deal involves the acquisition of the steelmaking coal unit of Canadian miner Teck Resources (TECKb.TO) for USD 9 billion, with Nippon paying USD 1.34 billion for a 20% stake.
Nippon has stakes in a number of coking coal mines that account for a fifth of its annual coal imports. After the finalization of the latest deal, this percentage increased to 30%.
Takahiro Mori, Vice President of Nippon Steel, said coking coal prices will strengthen as slowing mine investment due to decarbonization tightens supply.
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