Signing Memorandum of Understanding for Coal Exploration Project with COALWORKS Limited
February 18, 2010
ITOCHU Minerals & Energy of Australia Pty Ltd. (Australia; “IMEA”), a wholly owned subsidiary of ITOCHU Corporation (“ITOCHU”), and COALWORKS Limited (Australia) have signed a Memorandum of Understanding for an up to AUD11 million (approximately \900 million) joint venture to develop its Vickery South coal project. .
IMEA will contribute expenses of up to AUD11 million, which will be spent to complete feasibility studies, including the initial exploration. In return, IMEA will acquire an up to 49% stake in Vickery South coal project. IMEA and COALWORKS will continue discussion to negotiate to enter into binding formal agreements for the transaction.
ITOCHU is expected to market all coal produced from this mining site in the global market.
Through this coal exploration project, in addition to other exploration projects, including the exploration of base metals and rare metals, recently announced, ITOCHU will aim to expand its portfolio of interests in natural resources, and bolster its operating and trading profits.
Profile of COALWORKS Limited: A natural resources development company that holds a number of resources exploration licenses in Australia
|Corporate name||COALWORKS Limited|
|Head office||North Sydney, New South Wales|
|Established||Listed on the Australian Stock Exchange (ASX) in June 2008|