Posted in | News | Coal

Itochu Corp to Invest $1.6 Billion in Colombian Coal

Itochu Corp is to invest $1.6 billion in thermal coal operations in Colombia. The deal with Drummond Co. of the United States will give Itochu a 10% stake in the coal mining operations. The deal includes an exclusive right to export the extracted coal to Japan.

The agreement with the privately owned Drummond Co will allow the company access to 7 million tonnes of thermal coal annually in Japan. This is roughly 6% of the coal demand of Japanese power companies. Since the Fukushima nuclear power disaster there has been a scramble for new power supply sources in Japan.

The deal will see Itochu and Drummond work alongside to expand and develop the mining area. They will also develop rail and port facilities in order to lift the production of coal to 35 million tonnes by 2013.

The family owned Drummond Co was also being wooed by Glencore and Xstrata but chose to sign an agreement with the Japanese trading house. The deal was announced on Thursday and proved that the post tsunami future in Japan would see thermal coal power stations being set up more readily than nuclear power plants.

Joel Scanlon

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Scanlon, Joel. (2019, March 19). Itochu Corp to Invest $1.6 Billion in Colombian Coal. AZoMining. Retrieved on November 27, 2024 from https://www.azomining.com/News.aspx?newsID=4298.

  • MLA

    Scanlon, Joel. "Itochu Corp to Invest $1.6 Billion in Colombian Coal". AZoMining. 27 November 2024. <https://www.azomining.com/News.aspx?newsID=4298>.

  • Chicago

    Scanlon, Joel. "Itochu Corp to Invest $1.6 Billion in Colombian Coal". AZoMining. https://www.azomining.com/News.aspx?newsID=4298. (accessed November 27, 2024).

  • Harvard

    Scanlon, Joel. 2019. Itochu Corp to Invest $1.6 Billion in Colombian Coal. AZoMining, viewed 27 November 2024, https://www.azomining.com/News.aspx?newsID=4298.

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type
Submit

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.