Sojitz to Expand Iron Ore, Rare Metals Equity

Sojitz Corporation’s ferrous materials & steel products unit tries to expand competitive resource assets mainly for iron ore and rare metals. The unit eyes new iron ore interest while the unit tries to realize pending iron ore development in Western Australia. The unit conducts expansion of Canadian molybdenum mine and feasibility study to expand tungsten production in Portugal. The unit started work to make long term growth vision, which is base for new mid-term plan from fiscal 2012 starting April 2012, eyeing more profitable business structure based on wider resource and trading base.

The unit gets first results of pre-feasibility study on development of Southdown iron ore mine in Western Australia in the month. The unit reviews the profitability of the mining operation depending on next feasibility study and will decide the investment for pellet plant in Malaysia. The unit expects the iron ore mining will start operation as early as in 2013.

The unit tries to increase the iron ore interest by getting new resource, said the executive officer Shigeru Ohno, who is senior general manager of ferrous materials & steel products unit. The unit tries to select new iron ore development opportunities eyeing high grade hematite ore along with magnetite, of which the demand will increase.

The unit will complete expansion of Canadian molybdenum Endako mine in second half of 2011. With the expansion, Sojitz’s molybdenum equity increases by 60% to annual 4 million pound per year. The unit also completes pre-feasibility study for expansion of Panasqueira tungsten mine in Portugal in February 2011. The unit will have options to expand the output or take longer mine life depending on the exploration after the study. The unit also eyes potential ammonium paratungstate (APT) production while the mine now produces concentrate.

The unit started the work to make long term vision as part of activity in Energy & Metal division, which controls the unit. The unit reorganizes the strategy including limited resource allocations and strategic area selection through the unit wide discussion. The unit will realize the strategy under the new business plan from fiscal 2012, which the company will make in fiscal 2011.