Mitsui & Co. Revises New Investments in Metal and Energy Resources

Mitsui & Co. revises investment for metal and energy resources under financial squeeze and slower economy. The firm selects new investment plans and would postpones some plans in the area with revision for demand and price condition and investment cost while the firm keeps existing plans including iron ore and coal output expansion and nickel projects in Philippines and New Caledonia. The senior executive managing officer Masami Iijima expects competitive resources would be short in long term due to growing demand for steel and other industries. The firm tries to keep develop longer term resource portfolio when the firm targets 1.5 times of iron ore interests by 2015.

The mineral & metal resources business unit expended 130 billion yen for additional indirect share in Vale of Brazil and additional share in Sims Group of Australia and iron ore expansion through joint ventures in the first half year to September. The investment will reach 160 billion yen level for full year fiscal 2008 ending March 2009 as planned.

The firm revises investment plan in energy and metal resources especially for new projects. The firm tries to be severe in cost and return to enforce new projects. Mr. Iijima said investment opportunity is widening when many owners try to liquidate the assets but he said the firm will select the projects more severe than before.

The firm expects metal and energy resource demand will grow long term despite of the current adjustment. The firm tries to secure mineral resources steadily through long term strategy while the firm establishes better metal recycling system to recover ferrous and nonferrous metals.