Marubeni to Expand Cu, Nonferrous Resource Equity

Marubeni Corporation’s metals & mineral resources division expands equity copper to 130,000 tonnes level in and after fiscal 2011 ending March 2012, which represents more than double of current 60,000 tonnes. The equity increases when the interest holding Esperanza copper mine in Chile starts the operation and the interests holding Los Pelambres expands the output in 2010. The firm tries to expand the copper equity more through joint development with London based Antofagasta for new copper deposit in Chile. The unit targets profit jump through wider mineral resource equity including aluminium and rare metals.

Marubeni purchased 30% equity in El Tesoro mine with annual 90,000 tonnes of copper production and in undeveloped Esperanza mine in Chile from Antofagasta in 2008. Marubeni doubled the copper equity at annual 60,000 tonnes through the largest investment for the company.

Los Pelambres copper mine, in which Marubeni has 8.75% interest, already finished the expansion and increases the production from just more than 300,000 tonnes to more than 400,000 tonnes in 2010. With the expansion, Marubeni’s copper equity increases to 70,000 tonnes.

Esperanza copper mine with annual 200,000 tonnes of production is expected to start shipment in October-December 2010. The new operation adds annual 60,000 tonnes of copper equity for Marubeni. Esperanza mine also produces annual 230,000 ounces of gold as byproducts of the copper contributing to Marubeni’s profit. Marubeni agreed with Antofagasta to develop copper rich Sierra Gorda area in Chile jointly. The additional development will add Marubeni’s copper equity.

Marubeni targets annual 300,000-400,000 tonnes of aluminium ingot equity in 2013 through expansion of existing operation and new investment compared with current 150,000 tonnes of equity. The firm also eyes new investment for rare metals to secure non-China sources.