Mar. 2. 2012
Marubeni Corporation (Marubeni) announced on March 1st, 2012 that it and Winsway Coking Coal Holdings Limited (Winsway) of China (HKSE: 1733), have completed a joint acquisition of the Alberta-based Canadian coal producer, Grande Cache Coal Corporation (GCC), with Marubeni holding a 40% interest and Winsway taking a 60% stake in GCC. This purchase finalizes a definitive agreement that had been entered into with GCC on October 31st, 2011.
GCC owns and operates a mine with more than 300 million tonnes of coal resources. Marubeni and Winsway plan to expand the mine supported by this large resource base. As a result of the increase in crude steel production in newly emerging economies, fueled by strong economic growth, the supply-demand balance for hard coking coal has become tight and is expected to grow even tighter in the future. Given the current supply environment, where supply sources of hard coking coal are heavily concentrated in Australia, it is important to diversify the supply base by securing alternate sources of hard coking coal from countries other than Australia to ensure a stable supply to end users in importing countries, including Japan. This acquisition will also provide Marubeni with a platform for future growth in the coal sector in Canada.