Marubeni Corp Expands Coal an Iron Ore Interests with 500B Yen

Marubeni Corporation’s metal division plans to invest 300-500 billion yen to expand the interests in copper, coal and iron ore mines in next 5 years. The firm plans expansion of existent investing coal mines and new interest acquisition to more than double its equity to total 15 million tonnes per year in 2015. The division also aims to acquire iron ore interests newly at 5-10 million tonnes and to double copper ore interests. Marubeni builds up platform of raw material business and enhances profits.

The division aggressively increases prime assets for 3 years until fiscal 2012 ending in March 2013, according to Mr. Shoji Kuwayama, the division’s head. The division will invest 100 billion yen per year and double the assets from 507.7 billion yen at the end of September 2010 with double-size sales and profits.

The division eyes capacity expansion at existent investing coal mines including Lake Vermont and Hail Creek in Australia to 7 million tonnes per year in 2013 from current 5.7 million tonnes. At the same time, Marubeni seeks chances for new investment in prime assets of calking coal and fuel coal except for Australia to raise its total coal equity to over 10 million tonnes in 2015.

As to iron ore, the division eyes new investment in more than one new mine at above 5 million tonnes per year. Marubeni aims to improve investment efficiency by enhancement of mine business and builds up mine management system by increase of engineers.

The division’s net profit is expected to reach 34 billion yen in fiscal 2010 ending in March 2011 due to rising raw material prices. The profit may exceed record high 38.7 billion yen in fiscal 2007.