<p>Sumitomo Corp and Itochu Corp will buy partial interests in seven Queensland coal mines from Xstrata, the Swiss coal developer which recently bought MIM.</p> <p>The $555m (US$370m) package involves:</p> <p>• A 20% interest in the Newlands, Collinsville, Abbot Point (NCA) joint venture</p> <p>• A20% interest in the Oaky Creek Coal (OCC) joint venture and</p> <p>• A 25% interest in four Xstrata Coal Queensland projects in equal portions to the Japanese interests.</p> <p>Xstrata said the transaction purchase price represents a surplus, estimated to be approximately US$85m, over the fair value allocation of the MIM coal business at the time of acquisition. </p> <p>Up to US$70m of this would be booked to Xstrata’s profit and loss account in 2003, the company said.</p> <p>The two major Japanese trading houses already have a combined interest of 25% in three of the mines. </p> <p>The latest deal, due to be complete by the end of this year, will boost their stake to 45%. </p> <p>$49m of the total purchase consideration will be deferred until Xstrata approves the full development of the Rolleston project. </p> <p>A decision is expected early next year.</p> <p>The Rolleston project is capable of rapid development, with an estimated lead-in time of less than 24 months from project approval and estimated capital expenditure of some $380m. </p> <br />
