ITOCHU Corp to Invest 350B Yen for 5-Year Mineral Resource Business Expansion

ITOCHU Corporation’ metals division plans 300-350 billion yen investment to acquire high grade mineral resource assets toward fiscal 2015 ending in March 2016. The division targets to increase its equities in coal mines to above 15 million tonnes per year in fiscal 2015. As for nonferrous metal resources, the division tries to acquire new interests for rare metal and platinum. The division focuses on diverse menu and stable profitability even when market prices of metals and resources settle down.

The division has decided 30 billion yen investment for new equity acquisition and 40 billion yen investment for capacity expansion of existent investing projects in fiscal 2010. The annual investment plan is nearly 100 billion yen with potential increase. The division’s investment for next 5 years may exceed 350 billion yen with emergence of new attractive projects.

As for coal, the division had planned its equity expansion to 15 million tonnes per year from current 8 million tonnes until fiscal 2015 and decided 15% share acquisition in Maules Creek coal mine of Australia and developing investment Ravensworth North coal mine of Australia. Both mines are scheduled to start commercial operation in 2012 and supply soft-coking coal and high quality fuel coal at approximately 10 million tonnes per year.

As for iron ore, the division has continued large scale investment for capacity expansion of Namisa mine, cooperatively operated with BHP Billiton in Brazil. The division plans to increase its iron ore equities to 30 million tonnes per year by fiscal 2015 from current 14 million tonnes. This target is expected to be achieved by expansion of existing projects including Namisa.

The division also plans to expand its aluminium and alumina interests to 700,000 tonnes per year in fiscal 2015 from present 190,000 tonnes. The division seeks acquisition chances for both developed and undeveloped mines.

The division enhances raw material sales to emerging countries including China or India. The division plans to expand trade volume of primary aluminum ingot from Middle East to Asia as well as other metals and resources.