Mitsui Sells Indian Iron Ore Right to UK Company

Mitsui & Co. announced on Tuesday the firm sold off the share in Sesa Goa, Indian iron ore producer, to Vedanta Resources, a UK major metal and mining group, at US$ 981 million or 116.5 billion yen, while Mitsui had controlled Sesa Gore with 51% share. Mitsui regards iron ore business as a core operation and continues to expand existent iron ore projects mainly in Australia and Brazil, while seeks investment chance for another right acquisition. Mitsui transferred all shares in UK holding company to Vedanta Resources. Mitsui expects gain on the sales at 50 billion yen after tax. Sesa Gore sold iron ore at 9.559 million tonnes per year and posted net profit at 5.394 billion rupees or 15.3 billion yen in fiscal 2006 ended March 2007. Another background of the sellout was that Indian government put a tax on iron ore export at US$ 7 per tonne from March 2007. Mitsui keeps the stance unchanged to regard iron ore businesses as a core operation. The firm will expand joint businesses with Companhia Vale do Rio Doce, Rio Tinto and BHP Billiton. In March 2007 Mitsui decided additional investment at more than 17 billion yen for a joint business with BHP Billiton in west Australia.