Japan Smelters’ Wary about Stronger Mining Houses

Chairman Hirokazu Yoshikawa of Japan Mining Industry Association, who is chairman of Dowa Holdings, showed concern about further oligopoly of nonferrous major companies on Wednesday at regular press conference. He said if Freeport-McMoRan Copper & Gold would acquire Phelps Dodge, the firm would increase the copper interest share to around 12% and become top 2 after CODELCO in the world lifting the top 3’s share to more than 30% including 6.3% share of top 3 of BHP Billiton.Mr. Yoshikawa said with larger Freeport-McMoRan, the stronger power of mining houses could impact on Japanese smelters’ ore purchase condition. He said Japanese smelters should improve the cost competitiveness by increasing captive mine interests and using more recycling raw materials including scrap.