Kobe Steel, Harnischfeger gain huge contract from Coal India,
Order calls for 22 electric mining shovels

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OCTOBER 26, 1998 -- Kobe Steel, Ltd. of Japan and Harnischfeger Corporation of the United States were awarded an 8 billion yen contract by Calcutta-based Coal India Limited (CIL) for 22 P&H/KOBELCO 1900AL electric mining shovels.

The contract calls for Kobe Steel to supply the shovels, to be made under license from Harnischfeger, by November 1999. The Indian distributor of the shovels, Voltas Limited, will provide after sales servicing of the shovels.

This contract represents the single largest mining shovel order by CIL from any manufacturer in the world. For Kobe Steel, the contract is the largest order both in value and number of shovels. Opening the bidding through a global tender, CIL said it selected the P&H/KOBELCO shovels because of their high quality and reliable performance, in addition to strong product support by Voltas.

P&H/KOBELCO 1900AL electric mining shovels are equipped with a bucket capacity of 10 cubic meters and have an operating weight of 370 metric tons. The large bucket size enables the shovel to dig and carry loads of 18 to 20 metric tons. "Durability, easy maintenance and low energy use make the electric mining shovel a high efficiency, cost competitive machine for large-scale worksites," said Tenshin Shiozaki, Deputy Managing Director of Kobe Steel's Construction Machinery Division.

The investment is being funded by the World Bank under the Coal Sector Rehabilitation Project aimed at improving coal production. CIL, India's biggest producer of coal, will use the shovels to remove the overburden at its opencast mines. The use of the additional shovels is anticipated to increase production by 10%.

India is the world's fourth largest producer of coal after China, the United States and Russia. It has estimated coal reserves for 280 years at current rates of consumption. Coal is therefore a key source of energy in India, meeting over 60% of its energy requirements.

Background Information

Harnischfeger Corporation is a leading manufacturer of mining equipment. The company is based in Milwaukee, Wisconsin, USA.

Kobe Steel supplied Japan's first electric mining shovel in 1930. In 1955, it formed a licensing agreement with P&H for crawler cranes and electric mining shovels. The agreement for shovels continues to this day, and Kobe Steel has supplied a cumulative total of 430 electric mining shovels worldwide. P&H/KOBELCO electric mining shovels range from 150 to 1,500 metric tons and are fabricated at Kobe Steel's Takasago Works in western Japan.

Kobe Steel, Ltd. manufactures KOBELCO construction equipment, which includes hydraulic excavators, wheel loaders, work vessels, cranes and P&H electric mining shovels.

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Please direct media inquiries to:
Gary I. Tsuchida
Publicity Dept.
Kobe Steel, Ltd.
Tokyo, Japan
tel (03) 3218 6055
fax (03) 5252 7961
e-mail www-admin@kobelco.co.jp

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