Sumitomo Corp Gets New Resource of Iron ore and Coal in Brazil and South Africa

Sumitomo Corp’ resource division plans to secure resource of iron ore and coal after fiscal 2011. The firm fixed large iron ore project in Brazil in this year, and plans to expand existing iron ore business in South Africa and Brazil, coal business in Australia. The firm contributes Japanese integrated steel makers’ stable purchase for these raw materials.

The firm invests at 110 billion yen to new iron ore project in fiscal 2010 including to the investment of securement at 30% shares of MUSA, joint iron ore business with Usiminus, Brazilian major steel makers. Sumitomo Corp increases good resource such as the investment to Ashman, South African major steel maker, and additional buying of right for Oakey Creak, Australian coal miner. Sumitomo Corp expands the capacity of Asoman’s iron ore output by 6 million tones to 16 million tones in 2012, and the capacity of MUSA by 22 million tones to 29 million tonnes in 2014-2015.

As for coal, Sumitomo Corp develops large fuel coal mine and existing coal mine in Australia, which increases iron ore mines’ right by 9 million tones to 11 million tones and coal miner’s right by 3.5 million tones to 5 million tonnes until 2015.

Sumitomo Corp continues development of existing project and advances dissenmination for the future, which continues to develop of Tavantolgoi coal mine in Mongolia, large coal mines and Eriga in Russia for delivery of coal to Japanese steel makers.

Sumitomo Corp expects the division’s net profit is 25-30 billion yen in fiscal 2010, which increases more than 15 billion yen in fiscal 2009 under higher raw material price, and is higher than the record at 25.1 billion yen in fiscal 2008.