Coal
  ITOCHU has long been associated with the coal export business as a trading company and since 1994 we have also been actively investing in Australian Coal projects. In 2000 our various coal related subsidiaries were brought together under ITOCHU Coal Resources Australia (ICRA). Accumulated production from our investment projects (in 100% basis) in 2008 was over 45.0mtpa (million tonnes per annum). Australia is the most important region for the ITOCHU Coal Group.
Newlands, Collinsville & Abbot Point Project (NCA Project) - 35% Equity
The NCA project (major partner Xstrata: 55%) is one of the major coal producing complexes in Australia. Located in central Queensland, it currently supplies the export and domestic markets with approximately 4.5mtpa of coking / thermal coal from the Collinsville mine, and 9.4mtpa of thermal/coking coal from the Newlands mine. The new Wollombi pit has added a Hard Coking Coal to the range of products produced at Newlands. All export coal from the NCA project is exported through the port of Abbot Point, Australia’s most northerly coal export terminal.
 Oaky Creek Project - 20% Equity
The Oaky Creek Project (major partner Xstrata: 55%) is located in central Queensland. Oaky Creek produces 1st grade hard coking coal from underground operations and supplies approximately 8.0mtpa to export markets through the Dalrymple Bay Coal Terminal and port of Gladstone.
Rolleston Project - 12.5% Equity
The Rolleston project (major partner Xstrata: 75%) is located 275km west of Gladstone. It commenced commercial operations in 2005 and produces 8.0 mt of thermal coal per annum for export and domestic markets. Coal is exported through the Gladstone Coal Terminal.
Wandoan Project - 12.5% Equity
The Wandoan project (major partner Xstrata: 75%) is located in a huge but undeveloped Surat Basin in southern Queensland. Project is under prefeasibility stage, associated with various studies with regard to rail and port infrastructure. Wandoan will produce more than 30.0mtpa of thermal coal (in ROM basis) backed up by significant resource over 1 billion tonnes within its tenures.
Foxleigh Joint Venture - 10% Equity
The Foxleigh project was developed by an Australian consortium and ITOCHU in 2000 and is now run by Anglo Coal Australia (70%). The mine produces around 2.5mtpa of semi-anthracite coal with high CV, low ash, low sulphur, and low volatile matter. Production is expected to eventually increase to 3.3mtpa. The coal is sold into the PCI market through the Dalrymple Bay Coal Terminal.
Ashton Joint Venture - 10% Equity
The Ashton Joint Venture (major partner Felix Resources Ltd: 60%) is located in Hunter Valley in NSW. It currently produces around 3.0mtpa of high quality semi soft coking coal and steaming coal from an opencut operation. Underground operations commenced commercial production in March 2007.
Gloucester Coal - 5% share-holding
Gloucester produces both steaming and coking coals for the export market, with the vast majority of latter well accepted by Japanese customers, sales and production reached approximately 1.8mt in FY2007/08. Going forward, Gloucester coal has announced an increase in reserves and a strategy to extend mine life in the Gloucester basin as far as 2030.
Cumnock Joint Venture – 10% Equity
The Cumnock project (major partner Xstrata: 90%) is located in the Hunter Valley producing both semi-soft coking coal and thermal coal though open cut operations. ITOCHU is the exclusive agent for Japanese steel mills and a principal channel of thermal coal into Japan.
Kara Industrial Minerals (Tasmania) - 50% share-holding
Kara Industrial Minerals is a magnetite sales company, owned by ITOCHU Australia and Tasmania Mines. The product is for coal washery use. Kara has been increasing its market share in both NSW and QLD.
Exergen Pty Ltd - Minority Share Holding
ICRA is one of cornerstone investors of Exergen Pty Ltd, which has invented the innovative clean coal technology associated with the dewatering of low grade coal. This technology will enables Victorian local power stations to reduce up to 40% of CO2 emission. ICRA, together with Exergen plans to develop a large scale export project in Victoria.
PT Marunda Grahamineral Mineral (MGM) - 23.5% share holding
ICRA holds 23.5% share of PT Marunda Grahamineral (MGM) with 2 Indonesian local individual partners. The mine is located in central Kalimantan, Indonesia. The project started exporting coal in April, 2004. It produces around 1.5 mtpa of high grade semi-soft coking coal and steaming coal.
PT Suprabari Mapanindo Mineral (SMM) - 23.5% share holding
PT Suprabari Mapanindo (SMM) is located at 100km south of MGM and developing coal deposit to form a future mining complex with MGM in central Kalimantan, Indonesia. ICRA holds 23.5% share of the company with the same partners as MGM.
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