Coal

IITOCHU coal group has been associated with the coal export business in Australia for over 45 years. In 1994, through a coal investment in the Stratford Joint Venture by ICA Coal Australia Pty Ltd, ITOCHU shifted from solely a coal trading company to an investment and trading company. In 1996, ITOCHU Coal Resources Australia Pty Limited (ICRA) was established as a vehicle to invest in the NCA (Newland Collinsville and Abbots point) project. Since then, ICRA or IMEA Coal Division has been active to acquire coal assets and as a result, it is now involved with 9 coal projects in Australia and Indonesia.

Newlands, Collinsville & Abbot Point Project (NCA Project) - 35% Equity
The NCA joint venture (Xstrata Coal Queensland (XCQ):55%, ICRA: 35%, Sumisho Coal Australia (SCAP): 10%) is one of the major coal producing complexes in Australia. Located in central Queensland, it currently supplies 4.5mtpa of coking /thermal coal from the Collinsville mine for both the export and domestic market, and 9.4mtpa of thermal/coking coal from the Newlands mine for the export market. The port of Abbot Point, where all export coal from the NCA complex is handled has a geographical advantage with a throughput capacity of 21mtpa, which would see further expansion in the coming years to handle 50mtpa by the end of 2010.

Oaky Creek Project - 20% Equity
The Oaky Creek joint venture (XCQ: 55%, ICRA: 20%, SCAP: 25%) is located in central Queensland and produces 1st grade coking coal from two underground operations. Production capacity is in the order of 8.0 mtpa to export markets through the Dalrymple Bay Coal Terminal and Gladstone Coal Terminal.

Rolleston Project - 12.5% Equity
The Rolleston Joint Venture (XCQ: 75%, ICRA: 12.5%, SCAP: 12.5%) is also located in central Queensland. It produces low ash thermal coal from Opencut operations at annual rate of 9.0mtpa. Coal is exported through the Gladstone Coal Terminal.

Wandoan Project - 12.5% Equity
The Wandoan Joint Venture (XCQ: 75%, IMEA: 12.5%, SCAP: 12.5%) is an undeveloped coal deposit located at Surat Basin in southern Queensland. Project is estimated to produce up to 22mtpa of export thermal coal with the initial production commencing from 2014. Coal is planned to be shipped through Wiggins Island Coal Terminal.

Cumnock Joint Venture – 10% Equity
The Cumnock colliery is located in the Hunter Valley producing both semi soft coking coal and thermal coal. Xstrata Coal New South Wales (XCN) owns 90% of equity in the joint venture. Coal is exported through PWCS in Newcastle Harbour.

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
This is ICRA’s first attempt to invest into an Indonesian project, having a 23.5% share of PT Marunda Grahamineral (MGM) with 2 domestic individual partners. The mine is located in central Kalimantan, Indonesia. The project started to export in April, 2004. It produces around 1.8 mtpa of premium semi soft coking coal and high CV steaming coal.

PT Suprabari Mapanindo Mineral (SMM) - 23.5% share holding
PT Suprabari Mapanindo (SMM) is the project to develop coal deposit located 100km south of MGM to form a future mining complex with MGM in the Central Kalimantan. ICRA is holding 23.5% share of the company. Production of semi-hard coking coal and high CV steaming coal is expected from 2012.