Marubeni Corporation
24-Dec-10
Decision to Expand Lake Vermont Mine
Marubeni Corporation, together with its partners in Lake Vermont Joint Venture, Jellinbah Group, Sojitz Corporation and AMCI, has approved the expansion of production capacity at Lake Vermont Mine, Queensland, Australia. Marubeni holds a 33.33% interest in the Lake Vermont Mine (including an indirect holding through Jellinbah Group). The expansion will double the mines current output by duplication of the existing coal handling and preparation plant and accompanying civil works. The total capital expenditure for the expansion is expected to be approximately A$200million.
The current production of Lake Vermont Mine is 4.0 million tonnes per annum (Mtpa), and additional 4.0Mtpa of capacity will be provided by the expansion. This will increase Lake Vermont Mine production to 8.0Mtpa. The expansion works are expected to commence in early 2011, with completion in early 2013. Lake Vermont Mine has large open-cut coal reserves of high quality metallurgical coal, and the expanded mine will have an operational life of in excess of 20 years.
The mine has quickly reached full production of 4.0Mtpa of product Hard Coking (HCC) and Pulverised Coal Injection (PCI) coal since first mining in January 2009. The decision to double the mines production capacity comes just under 2 years after commencement of production.
Marubeni Corporation, through the expansion of the mine, aims to contribute to stable supply of 8.0Mtpa of low ash/low sulfur high quality HCC and PCI coal for steel making customers in Asia, South America and the rest of the world.
After the expansion, Marubeni will have total equity coal production capacity from its various investments of almost 7.5Mtpa.
Outline of Lake Vermont Mine
(1)Location
Queensland, Australia
Approximately 475km to Gladstone Port
Approximately 235km to Dalrymple Bay Coal Terminal
Approximately 407km to Abbot Point Coal Terminal
(2)Reserves
Reserves: 184 million tonnes*
(3)Initial Production
Jan-09
(4)Mining Method
Open cut mining
(5)Annual Production
Current: 4.0Mtpa
After expansion:
AFY 2013 : 6.0Mtpa
AFY 2014 onwards : 8.0Mtpa
(6)Market
Asia (Japan, China), Brazil, India etc.
(7)Ownership
Marubeni 10% (total of 33.33%, including indirect holding through Jellinbah Group), Jellinbah Group 70%, Sojitz 10%, AMCI 10%
* Mineable reserves within the current operating mining lease only. Additional mineable reserves in total of 54 million tonnes are reported within adjacent tenements owned by Lake Vermont Joint Venture.
Location: Brisbane, Queensland, Australia
Established: 1987
Description of business: Development and operation of coal mines and coal sales
Shareholders: Marubeni, Zashvin and Anglo American (each holding 1/3)
Location: Greenwich, Connecticut, USA
Established: 1986
Description of business: Development and operation of coal mines and coal sales
Shareholders: Fritz R. Kundrun (Chairman & CEO) 51%, Hans J. Mende (President) 49%
To continue reading, please go to the following page:
http://www.marubeni.com/dbps_data/_material_/maruco_en/101224e.pdf