Mitsui & Co. to Expand Iron Ore, Metal Resources Interests

Mitsui & Co.’s mineral and metal resources unit will expand the iron ore interests to 1.5 times at annual 66 million tonnes in 2015 from now under the long term vision. The unit expands the iron ore and nickel interests through expansion of existing project while the unit increases aluminium and copper interests to more than double through new projects. The unit plans 160 billion yen of investment in fiscal 2008 ending March 2009 and keeps investing annual 100 billion yen for the target. The unit tries to expand utilization of recycling materials including ferrous and nonferrous scrap and rare metal recovery under the vision toward 2020 while the unit secures competitive underground resources. The unit sees next growth in the recycling and environmental business. The unit expects the iron ore interests increase when the joint venture partners of BHP Billiton and Rio Tinto plan major expansion for the Western Australian operations while Vale, in which Mitsui & Co. has indirect interest, expands the iron ore output to 1.5 times from now to 450 million tonnes by 2013. Mitsui’s iron ore interests expand when Rio Tinto expands Western Australian output to 1.5 times at 320 million tonnes by 2012 and BHP Billiton doubles the output by 2011. Mitsui expands trading of ferrous scrap and substitutions from current 9 million tonnes to 13 million tonnes by 2015. The firm expands the ferrous scrap collecting capacity through domestic subsidiary, Mitsui Bussan Metals and Sims Group, in which Mitsui has 16% interest. Mitsui also tries to establish new recycling business model for waste appliances and electronic substrate. Mitsui also seeks potential investment opportunities to secure manganese, chrome and rare metal resources. The firm eyes potential low- and mid-carbon ferromanganese production at the partner, Erdos Electrical Power & Metallurgical while Mitsui tries to secure manganese ore sources to serve manganese ferroalloy operation of Erdos. Mitsui expects the metal resource supply could keep tight toward 2015-2020 under growing demand in BRICs and developing countries. The firm decided recycling materials are key factor for the stable supply along with the development of competitive new resources. The firm puts the resources into the environmental and recycling business more than before.