Mitsubishi Corp. to Explore Steel Raw Materials Resources

Mitsubishi Corporation’s ferrous raw materials division tries to seek new source for iron ore and raw materials to secure stable profit after 2015. The firm started exploration of iron ore resources in Guinea. The firm expects the potential project could grow several tens of million tonnes of annual production though the firm takes 3-4 years to find the quality and volume of the resources. The firm is also in feasibility study stage in potential iron ore mining field in Canada. The firm seeks stainless raw materials resources. The firm tries to find potential nickel projects along with existing ferrochrome operation in South Africa. The firm tries to expand the captive resources including ongoing exploration of uranium ore in Canada.The firm gains from the coking coal joint venture with BHP Billiton under the higher coal price. However, the firm tries to expand the resource base with expectation mineral prices could decrease in sooner or later. The ferrous raw materials division expects the consolidated net profit could be around 100 billion yen for the year to March 2007 as previous year.