Sojitz to Complete New Iron Ore Mine FS in West Australia in F2010

Sojitz plans to complete feasibility study of new iron ore mine development in West Australia, South Down Project, within fiscal 2010 ending in March 2011. The firm examines to start shipment of iron ore concentrate of 69-70% purity earlier than the launch of a pellet plant in Malaysia, even eyeing additional capacity expansion to the initial plan of 7 million tonnes per year. The firm aims to secure major ore customers including Japanese integrated steel makers and start the production until the beginning of 2014. Sojitz accelerates new iron source development when raw material supply is tightening due to Chinese steel demand expansion.

Sojitz will formally decide South Down development in the last half of 2011 after cost evaluation for facilities and layouts. The firm plans to complete equipment construction by the end of 2013 including ore crashers, ore selecting machines, slurry pipe lines and port infrastructures capable for 170,000-tonne class vessels. Sojitz expects South Down’s output could reach 10 million tonnes per year since the mine reserves 1 billion tonnes of resources. The firm acquired environment assessment for the project at the end of 2009 and applied to assessment for port construction.

Sojitz plans to process ore concentrate into pellet at Malaysian pellet plant. The project is operated by Grange Resources, a subsidiary of Jiangsu Shagang Group, with 70% equity in the project while Sojitz holds 30% equity. Sojitz aims to secure the volume equivalent to above 30% equity and supply concentrate to Japanese integrated steel makers.