Mitsubishi Corp. to Expand Ferrous Raw Materials Investment

Mitsubishi Corporation’s ferrous raw materials division expands investment for next generation resources tripling the iron ore interest by 2015. The unit considers increasing the competitive coking coal interests by 40%. The unit also studies to expand ferrochrome business and to seek potential nickel resource opportunity. The firm tries to improve the profitability by making use of the resource and procurement capacity to improve the sales and service for Japanese steel makers and to expand business for Asian steel makers.The unit expands the iron ore interest from current annual 7 million tonnes to more than 20 million tonnes by 2015. The unit develops new iron ore mine in Western Australia with Murchison Metals starting operation at annual 26 million tonnes in 2011. The unit also expands the iron ore resources existing mines in Canada and Chile. The unit also seeks potential new resources through feasibility study and exploration in Canada and Guinea. The joint venture with BHP Billiton, BMA expanded the output capacity by 10 million tonnes to annual 58 million tonnes by end of 2006, in which Mitsubishi Corp.’s interest represents 26 million tonnes. They try to estimate future demand for potential expansion and Mitsubishi Corp. eyes 35-36 million tonnes of coking coal interest by 2015. The unit has annual 210,000 tonnes of ferrochrome interest through the subsidiary, Hernic Ferrochrome in South Africa. The unit studies several options for future growth mainly by expanding Harnic capacity. The unit seeks nickel mining investment opportunity through partnership with Tokyo based ferronickel maker, Pacific Metals, in which Mitsubishi Corp. has 8.15% interest. The unit transferred the nickel and ferroalloy business to MC Resource Trade, which is the ferrous raw materials trading subsidiary launched in 2006, in April 2007 establishing one stop shop service for steel makers. MC Resource Trade expands the domestic business while the firm starts new business with smaller Asian steel makers to increase the trading in growing Asian market.