Mitsubishi Corp. to Invest in Metal Resources Aggressively

Mitsubishi Corporation’s metals group accelerates the investment in iron making raw materials and other resource assets in fiscal 2011 started April. The group increases the investment while the expenditure was lower than expected in fiscal 2010. The group keeps expanding resource production in existing projects including Australian coking coal project while the group steps forward on pending iron ore development project in Western Australia. The group tries to secure long term stable supply of strategic items.

The executive vice president Jun Kinukawa said the group catches up delayed investment activity in fiscal 2011 when the firm’s investment in metals and energy was only 165 billion yen in fiscal 2010 while the original plan was 1-1.2 trillion yen for 3 years through fiscal 2012.

The firm already decided expansion at the world largest coking coal supplier of BHP Billiton Mitsubishi Alliance (BMA) of Australia. Mr. Kinukawa expects the investment could be up to 1 trillion yen for coming years to expand the output capacity.

Mitsubishi Corporation’s metals group will finish bankable feasibility study on Jack Hills iron ore development project in Western Australia. The group will decide the development by end of fiscal 2011. The group also keeps investing in ongoing expansion at joint ventures of Iron Ore Company of Canada and Compania Minera del Pacifico of Chile. The group also continues study for Indonesian nickel project and uranium projects in Mongolia, Australia and Canada.

The group tries to secure long term competitive resource assets as the top priority. The group also seeks growth strategy in trading function in steel products and nonferrous metals products to renew itself into new business model for trading company.