Japan Major Smelters to Reduce Capital Expenditure by 33% in F2009

Japanese 7 major nonferrous smelters’ capital expenditure will decrease by 33% to 171.4 billion yen in fiscal 2009 started April from fiscal 2008. Toho Zinc expands the expenditure to build new electrolytic zinc plant while other 6 firms reduce the expenditure. The smelters try to keep investing in mining resources and smelting business. However, they postpone the investment in electronic materials.

Sumitomo Metal Mining reduces the expenditure by 60% to 22.7 billion yen in fiscal 2009 from fiscal 2008 after the completion of second plant of Philippine nickel project and expansion of electrolytic nickel in Ehime.

Nippon Mining & Metals keeps investing in mining resource. The firm completes feasibility study for Chilean copper development at Caserones in the summer. The firm will decide the development as early as end 2009. The firm focuses on maintenance expenditure in domestic facilities.

The smelters expanded the production capacity for mineral resources, metals and electronic materials in past 3 years under growing demand. However, they reduce the investment under severe business condition under worldwide recession.