Sumitomo Metal Mining to Invest 190 Billion Yen in 3-Year Plan

Sumitomo Metal Mining announced on Monday the firm invests 190 billion yen in 3 years through fiscal 2012 ending March 2013. The firm expands nickel production capacity from current annual 100,000 tonnes to 150,000 tonnes through 150 billion yen investment in smelting unit. The firm targets world top 5 in nonferrous mineral major in and after fiscal 2013 by expanding the equity metals including copper and gold.

The firm reshuffles the business structure under the 3-year plan from 2 core businesses structure of mineral resources & nonferrous metals and electronics & advanced materials to 3 core businesses structure by adding materials. The firm focuses the resources into the 3 core businesses.

The firm expands the equity metal production to annual 300,000 tonnes for copper and to 30 tonnes in 2020 through aggressive investment in exploration and new resource development. The firm starts the operation of Solomon nickel project during the period, which is now under exploration.

The firm expands the nickel production capacity to annual 100,000 tonnes level by starting operation for Taganito high pressure acid leach nickel project in 2013 and by expanding electrolytic nickel output capacity to annual 65,000 tonnes. The firm expands nickel output capacity to 150,000 tonnes level through Solomon project and more sourcing from Philippines.

The firm expects the consolidated recurring profit will be 110 billion yen in fiscal 2012 under US$ 6,000 per tonne of copper price, US$ 8 per pound of nickel, US$ 1,000 per troy ounce of gold and 90 yen per US dollar of exchange rate compared with estimated 75 billion yen of recurring profit in fiscal 2009.