Mitsui & Co, Japan’s second-largest commodity supplier and trader, borrowed $259 million from Japan Bank for International Cooperation to help develop the Kestrel coal mine in Australia, a joint venture with Rio Tinto Group.
The expansion will boost capacity at the mine by 63 percent to 6.5 million metric tons a year, the Tokyo-based bank said today in a statement.
Mitsui, which owns 20 percent of the Kestrel venture, has agreed to provide A$415 million ($444 million) of the total spending on the extension. The expansion may cost A$2.1 billion, Mitsui said Oct. 14
Mitsui forecast its attributable coal output may slide 4.5 percent to 8.5 million tons in the year ending March 31, according to the company’s Feb. 2 presentation.