Mitsui & Co. to Invest Rich Cash in Mineral Resources, Energy

Mitsui & Co. will continue aggressive investment for mineral resources and energy including iron ore and coking coal under the new 2-year plan starting in April 2012. The firm continues expansion and development of existing projects while the firm will seek opportunity to get competitive new assets. The firm secures certain investment budget for mineral resources and energy when the firm plans total annual 500-600 billion yen of investment in the new plan. The firm tries to improve stable supply ability of mineral resources and energy for Japan and Asia by combination of trading and other business functions.

Mitsui & Co.’s senior executive managing officer Fuminobu Kawashima said the firm keeps current business strategy for mineral and metal resources in new 2-year plan while the firm will make the plan. The firm tries to expand the core mineral resources and energy business while the firm tries to expand non-resource business weight in long term. The firm tries to increase iron ore supply through alliance with world 3 major iron ore miners. The firm expands and develops existing projects including Australian coal mines and Chilean copper mine. Mr. Kawashima said the firm seeks opportunity to get competitive new assets.

Mitsui & Co. invested 120 billion yen for mineral resources and energy including ongoing expansion of Australian iron ore and coal mines in first half of fiscal 2011. The firm will invest 260 billion yen mainly for existing projects in full-year fiscal 2011 as original plan while the firm plans more than 500 billion yen of loan and copper purchase scheme with Corporaci?n Nacional del Cobre de Chile on top of the investment budget. The firm eyes additional investment depending on investment opportunity for coking coal and other assets.

The firm posted 199.2 billion yen of net profit for mineral resources and energy in the first half of fiscal 2011, which was 40% higher than the profit in same period of fiscal 2010. Higher iron ore and other commodities’ price contributed to the higher profit. The firm revised the full-year profit target upward by 30 billion yen to record 355 billion yen from original target mainly due to higher energy price. The full-year profit target is 59% higher than the result in fiscal 2010.