Sojitz Increases Investment for Mineral and Resource to 55B Yen in F2010

Sojitz Corporation’s energy and metal division plans to increase the investment by 80% to 55 billion yen in fiscal 2010 ending in March 2011 compared with fiscal 2009. The division plans to invest approximately 30 billion yen to acquire new equities for coal and other minerals as well as expanding existing coal and aluminum mines. The division will acquire interests in a new copper mine and diversifies a menu of resources.

In fiscal 2009, the division got 12.5% interest in Gibraltar copper mine which produces copper concentrate at 115,000 tonnes per year. Sojitz’s equity will become equal to 23,000 tonnes of copper concentrate at the end of March 2010 when the mine’s production reaches 180,000 tonnes by output expansion.

The division aims to acquire new interests for coal, copper and uranium. Meanwhile, the division starts redevelopment of a molybdenum mine in Canada and advances expansion plans for aluminium and coal mines in Australia. The division prepares for feasibility study for development of an iron ore mine in Australia to start operation in 2013.

The division expects the recurring profit increases by 68% to 21 billion yen in fiscal 2010 from fiscal 2009 thanks to rising raw material price, a new copper mine and a coal mine. Sojitz’s coal and nonferrous metals unit estimates the profit to exceed 10 billion yen in fiscal 2010 from 8 billion yen in fiscal 2009. The ferrous materials and steel products unit forecasts the profit increases to above 8 billion yen in fiscal 2010 from 3.5 billion yen in fiscal 2009.

The energy and metal division’s recurring profit decreased by 62% to 12.5 billion yen in fiscal 2009 from fiscal 2008 while the profit before tax increased by 20% to 32.5 billion yen and the profit after tax increased by 71%.