Mitsui & Co. to Increase Metal Resource Investment

Mitsui & Co. will increase the investment for metal resources to 160-170 billion yen for fiscal 2008 started April mainly for existing projects of iron ore and nickel compared with 150 billion yen for fiscal 2007. The firm also expands the utilization of recycling resources including ferrous and nonferrous scrap. The firm tries to secure metal resources under long term strategy toward 2020. The firm keeps investing for Australian iron ore joint ventures with BHP Billiton and Rio Tinto, second phase of nickel project in Philippines and new nickel project in New Caledonia. The investment could increase more when the firm seeks new projects in ferroalloy, aluminium, copper and rare metals. The firm invested 150 billion yen in fiscal 2007 including capital participation in Sims Group of Australia and Erdos Electrical Power & Metallurgical of China compared with 65 billion yen of investment in fiscal 2006. The firm tries to expand the captive resources through the major investment in metal resources. The firm also expands the scrap generation volume at home and abroad while the firm expands recycling of valuable metals based on tie-up with Sims group. The firm expects the net profit will decreases by 15% to 150 billion yen for mineral & metal resources unit in fiscal 2008 from fiscal 2007. The profit will increase by around 50 billion yen without around 70 billion yen of onetime gain from assets sales including Sesa Goa of India and EBM of Brazil.