Mitsui & Co. to Expand Metal, Resource Assets for Next Growth

Mitsui & Co. increases the investment in metal resources to build competitive assets by utilizing the stronger financial position while the firm expands the scrap recycling business. The firm invested in resources mainly for existing projects while the firm was cautious for new acquisition under uncertain market situation. The firm plans 240 billion yen of investment in resource and energy in fiscal 2010 started April The vice president Ken Abe said the firm seeks competitive new resource assets aggressively even with more than 240 billion yen of investment while the firm checks the risk in the investment including resource countries’ policy. The firm targets iron ore, copper, nickel and rare metals including manganese and chrome.

The firm will expand the iron ore resources through tie-up with world major 3 companies while the firm develops nickel resources through Goro project in New Caledonia and Coral Bay Nickel in Philippines. The firm also seeks new assets for the metal resources including copper. The firm also develops Asian market for scrap recycling business to follow growing demand.

The firm posted 22.4% lower net profit at 62.9 billion yen for mineral & metal resources unit in fiscal 2009 from fiscal 2008 due to lower sales volume and price for iron ore. The firm sees the business condition improves quarter by quarter from the bottom in January-March 2009. The firm plans 140 billion yen of profit for the unit and the profit could increase more depending on the market. The unit targets 156 billion yen of profit for fiscal 2011 and targets more than 40% of the company’s profit when the company tries to secure 500 billion yen in 3-5 years.