Japanese unit of Moody's Investors Service announced on October 14 it would revise ratings for long-term debt of Sumitomo Metal Mining and Mitsubishi Materials to raise citing improving financial position after restructuring and divestment from lower profitability operations.

The unit said Sumitomo Metal Mining with Baa3 rating improves the position by improving interest-bearing debt to capitalization from 40.7% in March 2002 to 35.4% in March 2004.

The unit said Mitsubishi Materials reduced interest-baring debt by 100 billion yen in 2 years and improved operating profit to sales to 4.6% in the year to March 2004 from 1% 2 years ago while the interest-baring debt to capitalization is still high at 70% in March 2004.

Market also revaluates their growth strategy including investment to offshore mining and expansion of domestic copper smelting by Sumitomo Metal Mining and growth strategy for copper, cement, aluminium and processing by Mitsubishi Materials.

Sumitomo Metal Mining announced on Wednesday it would join world largest nickel project while it develops copper and gold projects.

Japanese largest copper producer, Nippon Mining & Metals of Nippon Mining Group tries to invest resources, reduce cost for domestic operations and expand Chinese copper drawing wire business. Dowa Mining is combining environmental and recycling business and smelting while it seeks higher valued products for metal processing business. Toho Zinc tries to develop niche market by combining resource recycling and diversifying raw materials sources. Japanese smelters try to differentiate themselves with each strategy to improve competitiveness while they keep core business of metal smelting.

Market revaluation of smelting business encourages their strategies, not only for Sumitomo Metal Mining and Mitsubishi Materials. They have to promote their effort more to attract market. They are forced to show more achievements after second half of fiscal 2004 ending March 2005.