Mitsubishi Corp. to Expand Equity Coal to 1.5 Times by 2015

Mitsubishi Corporation’s ferrous raw materials division expands equity coal to 1.5 times at annual 47 million tonnes by around 2015. The division already purchased additional share in Australian thermal coal producer and decided to expand Australian coking coal operations. The division expands the coal supply ability mainly through expansion of existing operations while the division eyes further expansion in longer term.

The division COO Iwao Toide said the division eyes potential investment opportunity in new coal assets. The division tries to expand the coal supply base depending on the demand growth.

The division already decided 420 billion yen class major expansion in the year through the 50/50 joint venture with BHP Billiton, BHP Billiton Mitsubishi Alliance (BMA). World top coking coal supplier of BMA develops new Caval Ridge mine and Daunia mine along with expansion of existing mine and port facility. Through a series of the expansion by 2014, Mitsubishi Corp.’s equity coal increases by around 6.5 million tonnes.

Mr. Toide said the firm, which has 50% of BMA with around 30% share in world coking coal seaborne trading, has commitment for stable supply. The division keeps investing in the expansion in and after 2014 depending on the market. Through the expansion, BMA could secure around 30% share in the growing market.

Mitsubishi Corp. completed additional share purchase in Coal & Allied of Australia in mid-December increasing the share from just more than 10% to 20%. Rio Tinto and Mitsubishi Corp. accelerate the expansion of Coal & Allied by launching new Mount Pleasant mine with annual 8.5 million tonnes of production by 2014 and expanding existing mines to increase the production from 18.7 million tonnes in 2010 to 30-40 million tonnes by 2015.

Clermont thermal coal mine, in which Mitsubishi Corp. has 31.4% interest, will increase the production to more than 12 million tonnes in 2013 from 4 million tonnes in January-September 2011 and 3.8 million tonnes in 2010. Ulan West coal project, in which Mitsubishi Corp. has 10% interest, will lance the annual 6.7 million tonnes of operation in 2014.

Through the expansion and development, Mitsubishi Corp.’s equity coal increases to 35 million tonnes for coking coal and 12 million tonnes for thermal coal in 2015 compared with 22 million tonnes and 8 million tonnes respectively in fiscal 2010 ended March 2011.