Marubeni to Invest 170B yen to Metals and Resources in 3-year

Marubeni Corporation’s metals and mineral resources division will invest 170 billion yen in 3 years to fiscal 2008 ending March 2009 to acquire resources. The unit seeks investment opportunities in metals including nickel and zinc and metal processing businesses along with the core targets of copper, coal, aluminium and iron sources. The unit tries to improve the profit base through the investment and better trading activity when the unit expects higher metals and resources prices would decrease though the unit enjoys the higher prices. The unit targets more than 15 billion yen of consolidated net profit in fiscal 2008 with lower prices expanding the profit more in 2010 when the new investment contribute to the profit. The unit tries to conclude the investment projects mainly in copper mine, aluminium smelter and coal mine businesses. The unit will double the interest based captive resources in years from annual 2.8 million tonnes for coal and from 40,000 tonnes of copper while the unit increases the captive aluminium ingot from 150,000 tonnes to 250,000 tonnes by 2008. The unit increases the iron ore trading by securing resources through tie-up with shipper in Goa, India by loan and acquiring annual 1 million tonnes of dealership in Australia. The unit also seeks projects to secure metals including price surging nickel and zinc under tight supply. The unit tries to expand the profitability by aggressive investment including nonferrous metals processing businesses and clean development mechanism projects along with expanded trading activity. The unit posted 53% higher consolidated net profit at 12 billion yen for the first half year to September from same period of 2005 due to higher copper price than expected. The unit expects the profit increases for the full year even from revision in October to 21 billion yen, which is 30% higher than original estimate and 56% higher than fiscal 2005. The unit planed 120 billion yen of new investment and financing including 50 billion yen in fiscal 2006 and 70 billion yen in fiscal 2007 under the 2-year plan. The unit expends around 120 billion yen in the 2 years though the investment activity was slower in the first half of fiscal 2006 than expected. The unit decided further investment in 3 years to fiscal 2008 recently after the revision of the budget for fiscal 2007 and fiscal 2008.