Mitsui & Co. to Accelerate Iron Ore Supply Expansion

Mitsui & Co. tries to expand iron ore supply through cooperation with 3 major iron ore miners. The firm would add equity ore target depending on the supply condition while the firm targets annual 70 million tonnes in 2015 compared with current 43.7 million tonnes. The firm accelerates the supply expansion mainly by developing existing plans to improve tight supply balance in the ore as raw material of key material of steel for world growth while the firm eyes new investment opportunity for competitive new sources.

Managing officer Yasushi Takahashi of Mineral & Metal Resources business unit said world needs additional capacity of iron ore when the supply is tight despite of major miners’ aggressive expansion under growing Chinese steel production and iron ore import. Mr. Takahashi indicates Mitsui & Co. would increase the captive ore target flexibly when the firm recognizes potential shortage while the firm targets annual 70 million tonnes of captive ore as immediate milestone.

UK based Rio Tinto plans to expand iron ore shipping capacity from current 225 million tonnes per year to 333 million tonnes by first half of 2015 in Western Australian operation. The main part is to expand Cape Lambert iron ore shipping port by 103 million tonnes to annual 183 million tonnes through joint venture, in which Mitsui & Co. has 33% interest. Depending on the pending mining expansion, Mitsui & Co.’s equity ore will increase from current 20 million tonnes.

BHP Billiton of Australia plans to expand iron ore shipping capacity to more than 220 million tonnes by 2015 in Western Australia. With the expansion through joint venture, in which Mitsui & Co. has 7% interest, Mitsui & Co.’s equity ore will increase by more than 4 million tonnes to more than 15 million tonnes.

Mitsui & Co.’s equity ore will also increase when Vale of Brail, in which Mitsui & Co. has indirect 5% share, will expand annual ore production by 211 million tonnes to 522 million tonnes by 2015. Mitsui & Co. expects the total equity ore will reach 70 million tonnes through the framework.

Mitsui & Co. also eyes new competitive resource development in Africa and other areas. The firm eyes new investment opportunity through partnership with the major 3 iron ore miners and new framework with other partners than the major 3 miners if Mitsui & Co. would provide the business engineering capability.