Xstrata PLC (XTA.LN), the miner, reported that Xstrata Coal and JX Nippon Oil & Energy Corporation Tuesday announced the creation of a joint venture comprising contiguous metallurgical coal assets in the Peace River Coalfields in Western Canada.
MAIN FACTS:
-JX Nippon Oil & Energy Australia Pty Ltd has paid $435 million in cash to acquire a 25% interest in Xstrata Coal British Columbia, or XCBC.
-Xstrata Coal has retained a 75% interest in XCBC and will develop, operate and manage the assets on behalf of the joint venture.
-Together with its 25% interest in XCBC through JX Australia, JX will be the exclusive marketing agent for First Coal and Sukunka coal sold into Japan.
-Technical studies indicate that the two most advanced XCBC projects, Sukunka and Suska, have the potential to produce up to approximately 9.5 million tons per annum.
Source: Dow Jones