Mitsui & Co. to Expand Equity Cu through Tie-Up with CODELCO

Mitsui & Co. expands the equity copper volume when the firm targets to triple the volume to annual 170,000-180,000 tonnes in 2015. The firm could have more than the target depending the opportunities including Chilean new mine development and company wide cooperation with Corporacion Nacional del Cobre de Chile. Mitsui & Co. with diversified businesses tries to contribute to world stable copper supply through the investment and support for the development when the additional supply is needed to meet growing demand in infrastructure construction in emerging countries.

Chilean Caserones copper mine development project, in which Mitsui & Co. has 25% interest, is accelerated to start ingot production by end of 2012. Mitsui & Co. tries to realize the production at the hydrometallurgical SX-EW process despite of US$ 1 billion of higher cost than original plan. The project adds near annual 40,000 tonnes of equity copper for Mitsui & Co. after the project launches concentrates production in 2013.

Chilean Collahuasi copper mine, in which Mitsui & Co. has 7.4% interest, is planning to expand the operation with annual 500,000 tonnes of production. The mine eyes maximum around 1 million tonnes of annual production. If the production increases to 1 million tonnes, Mitsui & Co.’s copper equity increases by near 40,000 tonnes per year.

Mitsui & Co. is watching situation on more than 500 billion yen of financing to CODELCO. Mitsui & Co. agreed with CODELCO for potential Mitsui & Co.’s equity acquisition of half of CODELCO’s holding in Anglo American Sur depending on the deal and CODELCO’s repayment option. Mitsui & Co. could get annual 110,000 tonnes of copper interest in the scheme.

Mitsui & Co. agreed with CODELCO to purchase annual 30,000 tonnes of copper for 10 years from 2012. Mitsui & Co. tries to establish company wide cooperation with CODELCO in supply of mining equipment and rail equipment and materials and procurement of plants regardless of the financing deal. Mitsui & Co. and CODELCO eye potential copper mine development in other countries than Chile.