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Itochu Corp to Invest $1.6 Billion in Colombian Coal

By Joel ScanlonJun 19 2011

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.

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.

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Scanlon, Joel. (2019, March 19). Itochu Corp to Invest $1.6 Billion in Colombian Coal. AZoMining. Retrieved on October 31, 2024 from https://www.azomining.com/News.aspx?newsID=4298.
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Scanlon, Joel. "Itochu Corp to Invest $1.6 Billion in Colombian Coal". AZoMining. 31 October 2024. <https://www.azomining.com/News.aspx?newsID=4298>.
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Scanlon, Joel. "Itochu Corp to Invest $1.6 Billion in Colombian Coal". AZoMining. https://www.azomining.com/News.aspx?newsID=4298. (accessed October 31, 2024).
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Scanlon, Joel. 2019. Itochu Corp to Invest $1.6 Billion in Colombian Coal. AZoMining, viewed 31 October 2024, https://www.azomining.com/News.aspx?newsID=4298.