Japan-based Nippon Steel Corporation has announced that it has signed an agreement with Canadian mining firm Teck Resources to acquire up to 10 percent of shares in the latter’s subsidiary Elk Valley Resources Ltd. (EVR).
Following the completion of the transaction, which is expected be completed in the first quarter (April to June) of financial year 2023-24, Nippon Steel and EVR will enter into long-term agreement, under which EVR will supply steelmaking coal to Nippon Steel. Securing stable procurement of high-quality coal will help Nippon Steel in its decarbonization of steelmaking processes as high-quality coal is required to make high-strength cokes, which play important roles such as reducing carbon emissions by improving reduction efficiency.