Mitsui Mining Co., a coke supplier to Japan's biggest steelmaker, is considering developing a mine in the north in what would be the first domestic coal project in 14 years.
"We will make a decision after watching the price movement and demand for coal," President Kiyoaki Ogura said Tuesday, adding the decision will be made by next spring. "We're also investigating the environmental impact."
Mitsui Mining is searching for a mining block about 10 km from an existing coal mine operated by its unit Hokkaido Sanko Petroleum Co. in Bibai, Hokkaido, Ogura said. The company is seeking a stable supply of coal because reserves at the current site are expected to dry up by March 31.
The unit produces 50,000 tons of coal for a power station operated by Hokkaido Electric Power Co.