Sumitomo Corp. said Wednesday wholly owned Australian subsidiary Sumisho Coal Development Pty. Ltd. has agreed in principle to sell 100 percent of its coal mining concession to two corporations based in Australia.
The two buyers -- RAG Australia Coal Pty. Ltd. and Thiess Pty. Ltd. -- will take over a concession for a coal mine that Sumisho Coal has been exploring under the North Goonyella Project, the major trading house said.
Sumitomo will incur a parent-only loss of 18 billion yen as a result of the sale, as its investment in the project eclipsed the sale value, which was not immediately known.
Sumitomo will write down the loss in closing its books for fiscal 2000, it added.