Mitsui & Co. Targets 70% Higher Captive Iron Ore Resource in 2015

Mitsui & Co. expects captive iron ore production reaches annual 70 million tonnes in around 2015, which is 70% higher than current level. The firm expands the supply capacity through alliance with major 3 suppliers to meet growing demand especially in China and emerging countries. The firm tries to find new iron ore project to expand the captive resources in longer term. The firm expands the supply ability of steel making raw materials including ferrous scrap, manganese ore and ferroalloy to meet growing demand in the world.

The firm revised the captive iron ore target from former annual 65 million tonnes in 2015 under the vision for 2020. The captive resource increases when the firm expands the output capacity of joint ventures with Rio Tinto and BHP Billiton while Vale, in which Mitsui & Co. has indirect 5% share, expands the output to annual 450 million tonnes level.

Mitsui & Co.’s captive iron ore reaches 47 million tonnes in fiscal 2010 started April due to ongoing expansion. The firm expends annual 50-60 billion yen for expansion in the iron ore joint ventures to increase the captive resource to 52 million tonnes in fiscal 2012. The firm expects the captive resource reaches 70 million tonnes level in 2015 through the expansion projects.

The firm, however, concerns iron ore demand could increase at higher pace than expansion of major 3 miners. Mitsui & Co. tries to develop potential competitive iron ore project to meet growing demand.

The firm also expands the trading of steel making raw materials as the basic function of the firm. The firm develops competitive projects and partners through the worldwide and wide industrial network of the company with risk management functions in sales and credit to meet changing world market.