Japan Major Nonferrous Smelters Expect Lower Profit for F2007

Japanese nonferrous smelters are reducing the profit toward the end of fiscal 2007 ending March 2008. Five smelters including Mitsubishi Materials and Sumitomo Metal Mining posted higher recurring profit for half year to September from same period of 2006 while 6 firms including Nippon Mining Holdings and Dowa Holdings expect lower profit due to higher ore purchase cost for the full year. Nippon Mining Holdings posted lower recurring profit for the first half from same period of 2006. The resources and metals unit posted 4.6% lower profit due to 6 billion yen of negative impact from higher ore purchase cost. The unit expects 17.4% lower profit for the full year from previous year. Mitsubishi Materials posted higher profit for the first half from same period of 2006 thanks to higher profit and dividend from offshore copper mines and higher selling price for copper and gold. Sumitomo Metal Mining posted higher profit for the first half from same period of 2006 due to higher price for copper and nickel. The firm doubled the equity method profit at 39.961 billion yen mainly from offshore mining operations. Mitsui Mining & Smelting reduced the profit for the first half from same period of 2006. The firm revised the full year outlook downward due to higher ore purchase cost. Dowa Holdings also revised the full year outlook downward while the firm posted higher profit for the first half.