Sojitz to Increase Investment in Coal and Copper Mines for F2012-2014

Coal & nonferrous metals unit of Sojitz, Japanese major general trading house, plans strategic investment mainly for coal and copper mines to expand existing businesses and to seek new equity acquiring chances during the next mid term starting in Aril 2012. Sojitz’ interests in coal mines will total 10 million tonnes per year in 2014 by expansion of existing businesses. The unit targets additional investment in Russia, Indonesia and Australia. The unit also eyes new equity acquisition in copper mines. The unit projects healthy profit growth through these activities as well as trade enhancement with emerging countries.

Mr. Hiroshi Matsumura, the unit head, suggested the unit will continue share acquisition in valuable properties in a mid-long term and design large-scale business expansion during fiscal 2012-2014. Especially for the coal business, the unit plans to progress marketing for new customers in emerging countries such as China and India.

In fiscal 2014, expansion of Lake Vermont coal mine in Australia will complete and the capacity will double. Other coal mine projects will also finish expansions in those which Sojitz hold equities. Sojitz’ interests in coal mines is expected to reach 10 million tonnes per year in fiscal 2014 including new expansion plans and capacity up at Belau coal mine in Indonesia.

As for copper, Sojitz has already decided expansion of Gibraltar mine in Canada by 1.6 times in which Sojitz holds 12.5% shares. The expansion will complete in 2013. Meanwhile, the unit has advanced feasibility study for new copper mines in Chile and Laos and sought other investment chances. The unit aims to raise its total copper interests by 10,000 tonnes per year including new investment and completion of Gibraltar mine expansion in 2013.

Expansion of the joint alumina refinement business, Worsley Alumina in Australia will also complete in early 2012. The capacity will increase by 30% to 4.6 million tonnes per year. Sojitz’ equity in Worsley will reach 410,000 tonnes per year.

The unit’s annual recurring profit is estimated at around 13 billion yen in fiscal 2011, improved from 12.0-12.5 billion yen in fiscal 2010. In and after fiscal 2012, coal, copper and aluminum prices might downturn while the unit’s profitability is expected to strengthen through equity expansion in various properties.