Mitsubishi Corp to Realize Ferrous Materials Projects in 5 Years

Mitsubishi Corporation’s ferrous raw materials division will realize pending large scale projects including expansion of metallurgical coal and iron ore mines and development of new nickel and uranium projects in 5 years. The division focuses on 6 items including coking coal, thermal coal, iron ore, chrome, nickel and uranium for mining investment. The firm tries to improve stable supply ability mainly for Japanese steel and power industry through combination between mining investment and trading function.

The ferrous raw materials division focuses on progress of projects at hand step by step, instead of new investment. The division chief operating officer Iwao Toide said the firm decided to realize the several hundreds dollar projects including expansion of Australian coking coal and development of Western Australian iron ore mine.

The division tries to increase the operation rate to annual 12 million tonnes of full capacity at Australian Clermont thermal coal mine, in which the firm has 31.4% interest, while the operation is around 60% level after the mine started operation in 2010. Ulan West thermal coal project, in which Mitsubishi Corp. has 10% interest, doubles the output capacity to 12.9 million tonnes in 2014. Mitsubishi Corp. tries to increase the thermal coal supply ability eyeing investment in new project.

The division will finish feasibility study of Weda Bay nickel project in Indonesia, in which the firm has 30% interest, next year to decide the development. The firm tries to realize the targeted annual 65,000 tonnes nickel making project when world stainless demand keeps growing in long term.

The division makes further study on uranium projects, Australian Kintyre project, in which the firm has 30% interest, and France based Areva led Mongolian exploration project, in which Mitsubishi Corp. has option to get 34% interest to decide development in and after April 2012. The division expects the world uranium demand increases mainly in China and India in longer term.

The firm focuses on improvement of Hernic Ferrochrome operation in South Africa, of which the firm controls 51%. Mitsubishi Corp. tries to improve the competitiveness and profitability of the subsidiary.

The division tries to improve the trading function for the stable supply commitment along with the investment in resources. The division improves the combined business functions to support stable procurement mainly by Japanese steel makers and power companies.