Mitsubishi Corp.’s 1 Trillion Yen Growth Investment in F2011-12

Mitsubishi Corporation’s growth investment reaches around 1 trillion yen in decision making base for metals group in fiscal 2011-12. The group already decided near 1 trillion yen for Chilean copper interest, Australian coking coal expansion and additional interests in Australian thermal coal and iron ore. The investment could be more when the group eyes new investment in copper and platinum group metals in fiscal 2011 ending March 2012.

Mitsubishi Corporation’s executive vice president Jun Kinukawa said copper business will be second major profit making source after coking coal through the strategic investment. The group tries to expand the business bases of the group in volume and menu by adding nickel, PGM and by expanding equity base of iron ore and thermal coal for profit of next generation.

The group already decided 420 billion yen of investment in expansion at world No.1 coking coal supplier, BHP Billiton Mitsubishi Alliance (BMA) and 420 billion yen of acquisition of 24.5% interest in Chilean copper miner, Anglo American Sur. The growth investment reaches near 1 trillion yen including additional purchase of interest in Australian thermal coal miner, Coal & Allied and interest in Australian Jack Hills iron ore mine and related infrastructure. The group would decide investment in new copper and PGM assets in fiscal 2011.

The group expects final decision of 1 trillion yen class iron ore development in Western Australia would be in and after fiscal 2012 due to reshuffling of the joint venture structure while the group expected the decision in fiscal 2011. The group will decide development for Weda Bay nickel project in 2012 after the feasibility study. With the investment in new copper and PGM, the group would realize expected projects in 3-year plan through fiscal 2012.

The group will post 230 billion yen of net profit for fiscal 2011 thanks to higher resource prices. The profit increases to 17 times in past 10 years. But the group’s profit depends heavily on coking coal. The group tries to expand iron ore and nonferrous metal business to diversify the profit source. With the major investment in past years, the group can make solid profitable base. The group tries to expand the each business while the group eyes new items including uranium, alumina and bauxite through exploration and investment activity.