Marubeni to Secure Next Generation Energy, Metal, Mineral Resource

Marubeni Corporation tries to secure next generation’s resource including energy, metals and minerals. The firm invests aggressively in metal and mineral resource area to get iron ore assets while the firm also seeks copper, coal, aluminium and rare metals. The firm eyes exploration of new resource for copper and coal. The managing executive officer Shinji Kawai said the firm tries to secure competitive long term resource with rich reserve as long term resource strategy. The firm also develops human resource including mining engineers and trading to support the resource investment for better profitability.

The energy, metals and mineral resource group decided to invest US$ 150 million in equity and development of Norwegian North Sea oil and gas field, US$ 650 million in equity of Gulf of Mexico oil and gas field and US$ 350 million in equity of Chilean copper mine through the joint venture in second half of fiscal 2010 ending March 2011 while the group couldn’t realize new investment in the first half. The group’s investment could be more than planned 10 billion yen for the year depending on the ongoing negotiation to get new resource.

The firm plans annual 10-12 billion yen of investment in energy and resources during 3-year plan through fiscal 2012. The group tries to get new asset in iron ore, coal and rare metals while the group expands existing assets of coal, aluminium, oil and gas. The group’s strategy is to expand existing copper projects while the group also eyes exploration of potential competitive deposit for future growth.

The group revised the full year net profit target upward to 58 billion yen for fiscal 2010, which is 3 billion yen higher than original plan and 12% higher than fiscal 2009 level. The group expects the profit could increase more depending on the commodity price level when oil and copper price keeps high level since October and many the offshore equity method affiliates close the book in December. The group posted 2.1 times of net profit at 26.8 billion yen in the first half compared with same period of fiscal 2009.