Mitsubishi Corp. to Diversify Metal Business

Mitsubishi Corporation’s metals group plans to invest in existing projects including coking coal for fiscal 2012 started April. The group prepares for new development projects including Australian iron ore mine and Indonesian nickel mine to start development in and after 2013. The group expands copper business as the second cash cow for the group after the coking coal while the group improves the balanced profit generating portfolio through selection and concentration in order to diversify the profit base. The group also accelerates global trading network through synergy with the resource investment.

The group decided total 1 trillion yen of investment in fiscal 2010-2011 when the group approved major expansion of Australian coking coal mine and acquisition of Chilean copper interest. The group expands the profit base to larger copper interest and newly added platinum group metals.

The executive vice president Jun Kinukawa said the group conducts development for existing projects with consideration for the optimum time frame. He said the group expands base of resource development by shifting the human resources to Australia, Chile, Peru and South Africa. The group tries to follow growing offshore demand through synergy with trading functions of Metal One Corporation and Mitsubishi Corporation Unimetals.

The group posted 26% lower net profit in fiscal 2011 from fiscal 2010. The group expects 7.5% higher profit in fiscal 2012 due to higher profit from copper interests and Metal One. The group seeks further profit growth through wider interest in coking coal, iron ore and copper.