Japan’s ‘urgent’ $1.6b coal deal driven by Qld royalty storm

According to The Australian Financial Review, Japanese giant Nippon Steel says the Queensland government’s coal royalties grab influenced its decision to spend $1 billion buying a stake in Whitehaven’s Blackwater coking coal mine, amid rising concerns over supply security.
Nippon Steel and Japanese company JFE Steel collectively bought 30 per cent of Blackwater in a deal disclosed on Thursday, giving owner Whitehaven Coal a $US1.1 billion ($1.6 billion) cash injection.
In rare public comments, Nippon Steel said the Queensland government’s decision to raise coal royalty rates in 2022 would “certainly” decrease the supply of coking coal long term by discouraging investment in new mines.
The steel maker said fears of a future supply shortage had given it “a strong sense of urgency” to own more of the coal mines that feed its mills.

https://www.afr.com/companies/mining/japan-s-urgent-1-6b-mine-purchase-driven-by-qld-coal-royalties-20240821-p5k4at