South Korean trading house LG Corp said on Wednesday it had set up a joint venture with a Canadian energy firm and a Japanese trading house to develop a coal mine in Canada.

The $11 million Comox Joint Venture with Canada’s Compliance Energy Corp (CEC.V) and Japan’s Itochu (8001.T) was set up to enter the Raven coal project in Canada, LG Corp said.

“LG Corp and Itochu each have 20 percent stake in the joint venture. Compliance has the rest,” said a spokesman at the South Korean firm.

The Raven Coal Project, located in Vancouver, has 59 million tonnes of inferred coal resources, about 90 percent of South Korea’s 64 million tonnes of total coal imports last year.

The joint venture is expected to begin production around 2012.

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