Mitsubishi Corp. Reshuffles Ferrous Raw Materials Business

Mitsubishi Corporation’s ferrous raw materials division renewed the organization of investment and sales to improve the function mainly for Japanese steel makers. The firm transferred Australian coal investment unit from CEO office of Metals group to the division while the division spun off the sales function of iron making raw materials. The division unifies the control of resource investment for steel raw materials under the strategy including sales seeking new resource projects for next generation. The sales unit improves trading function in the market with the own risk while the unit improves supporting function for Japanese steel makers. The division reorganizes itself for new business model of trading firm in steel raw materials by improving the function both in sales and investment under the synergy. The sales specialized unit tries to make use of the worldwide network and the sourcing capability with the investment assets more for the customers while the unit improves sensitivity for the market and user needs. The higher marketing ability could result in better resource investment for future market. The division tries to improve tries to renew itself new into new business category for steel raw materials, neither traditional trading firm nor mining houses. The division started the management of MDP unit, which manages the Australian coal investment firm, Mitsubishi Development, to share the strategy and to seek portfolio management synergy. The division also seeks new coking coal resources in longer term though the short term task is to expand the joint venture with BHP Billiton of Australia. The division also expands existing iron ore operations with the interests including IOC of Canada and CMH of Chile. The division started feasibility study at Canadian undeveloped iron ore resource eyeing production start in 2009. The division will take some risks for new iron ore mining resources in next generation when mining majors develop traditional major resources in Brazil and Australia. The division tries to develop new mine with competitive quality and cost. The division tries to increase the ferrochrome output by 100,000 tonnes to 400,000 tonnes in 2006 from 2005 after the expansion at the South African subsidiary. The division considers another expansion for the subsidiary while the division seeks potential nickel resources under expectation for stable growth of stainless steel market.