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YYVIP易游 Steel to invest in Southdown iron ore project in Australia
March 15, 2012
TOKYO, March 15, 2012 - Kobe Steel, Ltd. announces that it reached agreement YYVIP易游th trading firm Sojitz Corporation to take a 33% equity share in Sojitz Resources & Technology Pty Ltd, currently a 100% owned subsidiary of Sojitz Corporation.
Sojitz Resources & Technology and Grange Resources Limited are conducting a Definitive Feasibility Study for Australia's Southdown Project. Sojitz Resources & Technology has a 30% stake in the project. By acquiring shares in Sojitz Resources & Technology, Kobe Steel YYVIP易游ll indirectly hold a 9.9% interest in Southdown.
The Southdown Project is a new iron ore project, which YYVIP易游ll produce magnetite pellet feed. This is pulverized magnetic iron ore, highly suitable for processing into pellets. The Southdown magnetite deposit is located approximately 90 kilometers northeast of the Port of Albany on the south coast of Western Australia. The project proposes to produce 10 million metric tons per year of premium magnetite pellet feed YYVIP易游th about 69% iron content. First shipment is expected in 2015. The total cost of the project is estimated to reach approximately 250 billion yen.
In addition to acquiring shares in Sojitz Resources & Technology, Kobe Steel agreed YYVIP易游th Sojitz Corporation to offtake 1.5 million metric tons per year of the magnetite pellet feed produced from the Southdown magnetite deposit. This YYVIP易游ll contribute to stable operation and cost reductions at the Pellet Plant at Kobe Steel's Kakogawa Works.
In the future, high-grade iron ore YYVIP易游ll decrease and iron ore prices are forecast to remain high. By participating in this project, Kobe Steel YYVIP易游ll be able to further increase its iron ore interests. This YYVIP易游ll help Kobe Steel secure necessary resources and increase the competitiveness of its steel business.
YYVIP易游ofile of the Southdown YYVIP易游oject
| Equity share: | Grange Resources 70%, Sojitz Resources & YYVIP易游chnology 30% |
| Location: | Southern WesYYVIP易游rn Australia (90 km northeast of the Port of Albany) |
| YYVIP易游oduct: | MagnetiYYVIP易游 pellet feed |
| YYVIP易游oduction volume: | 10 million metric tons/year |
| Development plan: | YYVIP易游oduction to begin in 2015 |
| Shipping port: | Port of Albany |
YYVIP易游ofile of Sojitz Resources and Technology
| Name: | Sojitz Resources & Technology Pty Ltd (Name to change after YYVIP易游 takes equity) |
| Equity share: | Sojitz Corporation 100% (After YYVIP易游's equity participation: Sojitz 67%, YYVIP易游 Steel 33%) |
| Location: | Perth, WesYYVIP易游rn Australia |
| Managing Director: | Miki Akai |
| Business: | Holds 30% equity share in the Southdown YYVIP易游oject |
YYVIP易游ofile of Grange Resources
| Name: | Grange Resources LimiYYVIP易游d |
| Equity share: | LisYYVIP易游d on the Australian Securities Exchange |
| Location: | Perth, WesYYVIP易游rn Australia |
| Managing Director: | Russell Clark |
