Sumitomo Corp to Expand Metal Resource Equities by 50% in 2015

Mineral Resources, Energy, Chemical & Electronics division of Sumitomo Corporation plans to increase upstream businesses toward 2015 including business rights for iron ore, coal and nonferrous metals. The division aims to increase the gross assets by 50% compared with the end of March 2011. The division will expand existing projects such as iron ore production in Brazil while seek new investment opportunities mainly for coal, iron ore, copper, oil and gas. The division tries to enhance the sales and profits synergistic combination of upstream and down-midstream businesses.

The division plans to increase the gross assets by about 200 billion yen toward the end of March 2013 including development of Chilean copper mine and expansion of Brazilian iron ore mine, which Sumitomo Corporation acquired in 2010, to 30 million tonnes per year. Completion of a nickel project in Madagascar is also scheduled. Meanwhile, the division seeks new investment opportunities for raw material priorities such as coal.

The division plans approximately 100 billion yen capital expenditure in fiscal 2011, for instance, 20 billion yen for copper development projects in Chile and 10 billion yen for iron ore mine expansion in Brazil.