Sojitz Seeks Investment in Titanium Resource Properties

Steel & Raw Material division of Sojitz, Japanese major general trading house, aims to newly acquire equities in titanium raw material properties. Sojitz analyzes stable supply of raw materials is required when titanium consumption has increased or airplanes and pigments. The division involves titanium into the current strategy to expand supply bases of rare metals such as niobium. For fiscal 2012-2014 ending in March 2015, the division plans to complete the development of an iron ore mine in Western Australia while to build up the supply capacity for rare metals, including searches for titanium upstream properties such as ilmenite or rutile to carry out investment in or after 2012.

Sojitz has drawn up next three-year strategic plan for fiscal 2012-2014. The main project is development of South Down iron ore mine in Western Australia in which Sojitz has 30% interests. Sojitz aims to conclude feasibility study until the end of March 2012 and to make final decision in mid 2012 for investment in the mine’s development toward 10 million tonnes of yearly output capacity. Sojitz eyes the first commercial shipment in 2014.

Capacity expansion at Endako molybdenum mine in Canada, in which Sojitz holds 25% shares, will complete in early 2012 and the full production is expected to start in 2Q-3Q 2012. The capacity is raised by 1.6 times. CBMM of Brazil, in which Sojitz has 2.5% shares, will also increase production capacity of ferroniobium to 150,000 tonnes per year in 2014 from present 90,000 tonnes. Sojitz also eyes expansion of the 100%-owned tangstain ore mine in Portugal.

In fiscal 2011, the division plans annual capex at approximately 8 billion yen such for continuous expansion of Endako mine and entrance in coal business in China.