Sumitomo Metal Mining to Explore New Cu, Au Resources

Sumitomo Metal Mining allocates annual 3 billion yen or 75% budget for new deposits exploration out of total annual 4 billion yen of exploration budget in 3 years through fiscal 2012 ending March 2013. The firm uses remaining budget for exploration in adjacent deposits of existing mines including Hishikari gold mine, Pogo gold mine and Morenci copper mine.

The firm targets annual 300,000 tonnes of equity copper and 30 tonnes of equity gold in the 3 years compared with current 200,000 tonnes and 20 tonnes respectively. The firm also expands the equity nickel through investment in various projects. The firm tries to expand the equity metals by developing greenfield projects, by joining early stage projects and by expanding existing projects.

The firm conducts around 20 exploration projects. The projects include gold explorations in Alaska, USA,Yukon, Canada and Philippines and copper explorations in Peru, Chile and Australia.

The firm tries to secure equity ore to the own smelter in Japan. The firm also expands the mining business for potential ore sales to third parties. The firm explores potential resource in Brazil and Solomon Islands. The firm also seeks opportunities to purchase interests in early stage mining projects.

The firm conducts feasibility study to expand Cerro Verde copper mine of Chile, in which the firm has around 17% interest. The firm is expanding US Morenci copper mine, in which the firm has 12% interest, to increase the output to 1.4 times of current level.