Mitsui & Co. to Expand Equity Nickel Volume

Mitsui & Co. expands equity nickel volume mainly through new hydro metallurgy projects in New Caledonia and Philippines. The firm provides full support for the projects with advanced technology of Sumitomo Metal Mining. Mitsui & Co. also expands the strategic partnership with Vale of Brazil in nickel business. Mitsui & Co. keeps investing for more nickel supply despite of the adjusting nickel market when the supply expansion is needed in long term. Mitsui & Co. tries to realize the targeted around 40,000 tonnes per year of equity nickel in 2015 compared with current around 30,000 tonnes.

Goro Nickel project in New Caledonia, in which Mitsui & Co. has 10% interest, continues test operation for integrated process while the project ships intermediate product. With top class engineers from Vale and Sumitomo Metal Mining, the project with annual 60,000 tonnes of nickel production capacity will start commercial operation for the final product of nickel oxide in mid-2012.

Taganito nickel project in Philippines, in which Mitsui & Co. has 15% interest, now enjoys security while the project was occupied by armed group temporarily. With full support in better security by Philippines government, the project is moving to resume construction work. Mitsui & Co. expects the delay is limited from operation start in planned 2013 for the annual 30,000 tonnes of nickel production.

Vale launched ferronickel production at On?a?Puma with annual 53,000 tonnes of nickel production in Brazil in May. The firm plans 300,000 tonnes of nickel production in 2012. The firm expands the production through expansion in Indonesian operation. With the expansion of Vale, in which Mitsui & Co. has 5% of indirect interest, Mitsui & Co. expects the equity nickel increases.