Mitsubishi Materials to Secure Copper Resources

Mitsubishi Materials tries to secure nonferrous metal resources when mineral majors try to expand the profit with the bargaining power after the major M&A. President Akihiko Ide of Mitsubishi Materials said the firm tries to secure copper ore though the exploration effort. Mr. Ide said the copper demand keeps strong and the firm enjoys high stable price and favorable profitability as last year. He said the firm, which supplies 70% of the copper to group companies including Mitsubishi Shindo, Mitsubishi Cable Industries and Sambo Copper Alloy, enjoys strong demand despite of the slower domestic market.

Mr. Ide said the firm purchases 60% of copper ore requirement from Escondida, Los Pelambres, Huckleberry and Batu Hijau, in which the firm has miner interests. He said the firm tries to expand the purchase rate from mines with the interests to 75% for stable procurement.

Mr. Ide said the firm tries to find new resources by participating in the exploration in early stage. The firm expends annual 400-500 million yen for the exploration. The firm already seeks new resources in Australia with Mitsubishi Corporation and in Fiji with Nittetsu Mining and Newmont Mining.