Mitsubishi Corp to Expand Iron Ore and Coal Mine Equities toward 2020

Mitsubishi Corporation’s ferrous raw material business unit plans to increase interests in coking coal and iron ore mines toward 2020. The firm aims to have coking coal equity at total 35 million tonnes per year, increasing by about 50% from the present, mainly by expansion of BMA, a joint venture with BHP Billion of Australia. As to iron ore, the firm targets to bring up the total equity to 20 million tonnes per year in a medium term and 50 million tonnes at maximum in a long term, about 7 times of the present equity, by development of a new mine in West Australia and expansion of existing mines. The firm expects steel material demand grows steadily along steel output increase in China and India. The firm tries to establish stable supply system of raw steel materials and improve services for the customers mainly in Japan.

At BMA in which Mitsubishi Corp holds 50% equity, expansion plans are examined for several new and existing mines in Australia. Marine transportation of coking coal is forecasted to increase to 270 million tonnes in 2020 from 150 million tonnes in 2009, according to a third party data.

For iron ore, Mitsubishi Corp plans to develop Jack Hills mine in West Australia through a joint venture in which Mitsubishi Corp holds 50% equity and start production at 20-25 million tonnes per year in 2014. The firm also eyes expansion of IOC mine in Canada and CMP mine in Chile, and targets to raise the total equity by 3.5 times to 25 million tonnes in 2015 from the present. Marine transportation of iron ore is forecasted to increase to 1.2 billion tonnes in 2020 from current 0.9 billion tonnes, according to the third party.

Mitsubishi Corp tries to establish stable supply system for ferrous raw materials when raw material supply is tight due to strong demand in emerging countries. The firm secures mine engineers and special staffs in Australia and other areas for better development and services.