Friday, 17 Jun 2011
Reuters reported that Japan Itochu Corp would take 20% of Drummond Co Colombia coal operations for USD 1.5 billion seeking to meets growing demand for high quality thermal coal in Asia.
The nation fourth biggest trading house will gain the exclusive right to export the coal used to burn electricity generation, demand for which is expected to rise in Japan after the Fukushima nuclear power disaster in March. It plans to start shipments this year.
Privately held Drummond, the second largest coal exporter in Colombia had run an auction process on the assets at least twice involving Brazilian mining giant Vale SA, Glencore and Xstrata.
Mr Yoichi Kobayashi Itochu director said but Itochu sealed the deal as Drummond wanted a minority partner and to strengthen shipments to Asia.
The companies aim to increase production by 10 million tonnes to 35 million tonnes by 2014 and ship 70% of that 10 million to Asia, especially to China, India and Japan. The rest will be shipped to Europe, Latin America and other places.(sourced from Reuters)
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