Itochu eying coal mines in Russia Canada and Indonesia

Monday, 18 Jul 2011

Bloomberg reported that Itochu Corp is seeking to invest in mines in Russia, Canada and Indonesia to tap rising global demand as the Fukushima nuclear disaster fuels a search for energy alternatives.

Mr Hiroshi Akiba general manager at Itochu coal department without reveling specific sites or the size of investment said the trading company, which is seeking to double its coal assets by 2015 is targeting the three resource rich countries to secure thermal and steelmaking coal supplies.


He said that "Our presence is still very small in the global coal trade. We will spend more on mines if and when we identify good projects to invest in."

Mr Akiba said the Fukushima nuclear accident may accelerate coal demand from Europe and Japan as the fuel is regarded as an alternative to atomic energy. Itochu agreed last month to pay USD 1.5 billion for a 20% stake in Drummond Co Colombian operations to expand reserves.

He said that Itochu expects the investment in Colombia, the company biggest will earn well over JPY 10 billion in profits after tax as early as next year. Output at the Colombian operations may increase 40% from last year to 35 million tonnes by 2014.

(Sourced from Bloomberg)