Sumitomo Corp to Double Raw Material Output in 2015

Sumitomo Corporation aims to more than double iron ore and coal outputs in 2015. The firm will develop new coal mines in Australia and acquire new equities Australian and Indonesian coal mines in order to increase coal output to 10 million tonnes per year. The firm will expand the iron ore right to 2.6 million tonnes along the expansion of South African iron ore mine while acquire new sources in Brazil.Sumitomo Corp holds coal rights at total 5 million tonnes per year in 5 coal mines of Australia. In Australia, the firm’s equity is expected to reach 8 million tonnes in 2012 thanks to the development of Wandoan coal mine. The firm aims additional output increase by the expansion of existing coal mines and the participation in the Russian development project for Elga mine.As to iron ore, Sumitomo Corp has 13% interests in Assmang, a major resource company of South Africa. Assmang plans to increase iron ore output to 14 million tonnes in 2012 from current 8.4 million tonnes. Assmang even plans the additional expansion to 20 million tonnes in 2014. Sumitomo’s share would reach 2.6 million tonnes in 2014. Sumitomo Corp also plans to seek new iron ore mines in Brazil or Africa.Assmang will also increase high grade manganese ore output to 5 million tonnes per year from current 3 million tonnes while supplies chrome ore at 1.2 million tonnes per year. Assmang entertains expansion of ferrochrome and manganese ferroalloy 5 year later as well.Sumitomo Corp decided capital expenditure at 30 billion yen for Assmang’s expansion plan in fiscal 2008 ending March 2009. The firm’s annual investment for the resource business more than doubles from 15 billion yen in fiscal 2007.