The logos of Nippon Steel Corp. are displayed at the company
headquarters in Tokyo, Japan March 18, 2019. Picture taken March 18, 2019.
REUTERS/Yuka Obayashi
TOKYO, March 3 (Reuters) - Nippon
Steel Corp (5401.T) could buy more stakes in coking coal
and iron ore mines even after its recent decision to invest in a Canadian mine,
as it sees a risk of commodity prices staying high, an executive at the world's
No.4 steelmaker said.
Japan's top steelmaker said in
February it will spend around 1.15 billion Canadian dollars ($844 million) to buy a 10% stake in Elk Valley Resources Ltd
(EVR), the coking coal unit to be spun off from Canadian miner Teck Resources
Ltd (TECKb.TO).
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Nippon Steel already owns stakes
in several coking coal mines, procuring 20% of its annual 27 million tonne
imports of the coal. The deal will boost that share to 30%.
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But it may not be enough, as
prices of key steel-making ingredients, including iron ore, could remain at
high levels, executive vice president Takahiro Mori said this week.
"If a good mine goes up for
sale, we will consider buying a stake," Mori told Reuters in an interview,
adding the search includes iron ore. The steelmaker now procures 20% of its 58
million tonnes of iron ore imports from its equity holdings