Mitsubishi Corp to Make Formal Decision on Iron Ore Mine Development in West Australia

Mitsubishi Corporation will make a developing decision on a new iron ore project in West Australia during the term from late 2011 to January-March 2012. The firm has implemented feasibility study of the project which involves development of iron mine and productive infrastructures. The mine is expected to start ore shipment in 2014 at earliest. Mitsubishi Corp tries to expand its supply volume of iron ore by 3 times, including capacity expansion of existent investing mines in Canada and Chili.

Mitsubishi Corp will complete feasibility study of Jack Hills iron ore mine through Crosland Resources, a joint company with Murchison Metals in Australia, until mid 2011. The project obtains construction of Oakajee port and railway construction with 500 kilometers length at hundreds of billion yen investment.

Iron ore of Jack Hills will be purchased by steel makers in Japan, South Korea and China. Mitsubishi Corp has accepted letter of intent (LOI) for iron ore supply at over 20-25 million tonnes per year from Japanese integrated steel makers. Mitsubishi Corp will conclude formal long-term contracts after the decision on the mine’s development.

In Chile, Mitsubishi Corp started capacity expansion at CMP, in which the company holds 25% equity, by 1.6 times to 16 million tonnes per year until 2013. In Canada, Mitsubishi Corp plans to increase output of IOC, Canadian iron ore mine in which the firm holds 26.2% shares, by 4 million tonnes to 22 million tonnes until 2012.

Mitsubishi Corp’s iron ore equity is expected to total 20 million tonnes ore more per annum after the completion of all expansions from present 7 million tonnes. The firm targets 40-50 million tonnes per annum in future eyeing investment for new development projects.