Itochu Corp to Double Iron Ore Mine Rights by 2015

Itochu Corporation, Japanese major trading house, aims to double the iron ore mine interests to 21-26 million tonnes per year by 2015 from current 10 million tonnes. The firm also plans to increase the coal rights to 20 million tonnes from current 9 million tonnes. The firm will expand the existent mine rights in Australia and other countries while develop new sources.BHP Billiton, Australian iron ore supplier, is expanding the iron ore output in west Australia to 20 million tonnes per year. Itochu Corp has 8% shares in a joint venture project with BHP Billiton in the area. Along BHP Billiton’s output expansion, Itochu Corp will become to take iron ore at 16 million tonnes per annum until 2011. Additionally Itochu Corp will acquire new mine rights at 5-10 million tonnes.Itochu Corp will increase the existent interests in Indonesian and Australian coal mines to 12 million tonnes per year in 2011 and to 15 million tonnes in 2015. The firm plans to take additional coal mine rights at total 5 million tonnes in Mongolia, North America and China.As to alumina, the firm decided to expand a joint business with BHP Billiton while explores new investment projects in Asia and Africa. The firm also aims to acquire additional rights for base metals including copper and nickel, and miner metals such as platinum and rear earths.Itochu Corp plans annual capital expenditure at 80 billion yen for fiscal 2008 ending March 2009 in the metal resource & coal department, increasing significantly from fiscal 2007. Ichiro Nakamura, the department head, said the firm may invest 100 billion yen for stable supply of metal resources.