Sojitz to Expand Investment for Metals, Coal Resources

Sojitz’s mineral resources unit seeks opportunity aggressively to secure new metals and coal resources. Shigeru Ohno, senior general manager of the unit said the pinch is chance to get resource interest at much lower cost than before while commodity price drop impacts the profitability. The unit tries to improve the resource base with long term competitiveness for next growth.

The unit decided to postpone expansion working at Canadian molybdenum joint venture, Endaco mine with Thompson Creek under the slower demand. The unit tries to check the profitability for the investment severer than before but the unit will take chance for investment opportunities in mineral resources.

The unit eyes new investment in coal resources in Asia and Pacific area while the unit seeks opportunity to secure rare metal resources including manganese. The unit agreed with General Moly of USA to get exclusive marketing right for annual 5 million pound of molybdenum to Japan and Asian buyers in and after 2012.

The unit posted 11.1 billion yen of recurring profit for the half year to September, which was 23% higher than same period of 2007 thanks to higher price for coal. The unit expects the profit will increase by 10% to 19 billion yen for the year ending March 2009 from previous year despite of the downside risk depending on the trading business.