Taiwans China Steel OKs stake in Aussie coal mine
The board of Taiwan’s China Steel Corp. has approved the A$16.54 million (US$13.02 million) purchase of a 5 percent stake in Australia’s Q Coal Pty Ltd Sonoma coal mine, the Taiwan company said in a statement on Friday.
The investment would go towards development of the privately-held coal mine, said China Steel, the island’s largest steel maker.
The mine, which is located in Australia’s northeastern state of Queensland, could yield a total of 47 million tonnes of coking and thermal coal, the company said.
Q Coal is planning to begin production in 2007, according to the company’s Web site (www.qcoal.com.au/)
China Steel, along with other global steel makers, have had to shoulder sharply higher coal and iron prices, spuring the company to broaden its sources of raw materials.
Shares in China Steel ended 0.31 percent higher on Friday at T$32.70, lagging a 0.78 percent gain on the broader index . (US$1 = A$1.27) (US$1 = T$32.60)
