Marubeni to Expand Cu, Al Interests in Long Term

Marubeni Corporation tries to expand nonferrous business in long term. The firm expands captive aluminium ingot from current 150,000 tonnes to 300,000-400,000 tonne level in 2013 while the copper equity increases from 60,000 tonnes to 120,000 tonnes in 2011. The firm tries to expand the resource base for future growth while the firm tries to minimize major investment in short term under recession.

The firm has copper interest in Los Pelambres mine in Chile. The firm invested around 150 billion yen in Esperanza and El Tesoro copper mines in Chile, in which Antofagasta of UK holds majority. Esperansa will produce annual 700,000 tonnes of copper concentrate or 200,000 tonnes of copper, which represents 7% of Japanese import, with more than 1.9 billion tonnes of reserve. Marubeni will ship around 40% of the production from Esperansa to Japan. El Tesoro mine produces annual 90,000 tonnes of copper ingot. The firm expanded the copper equity base through the major investment.

The firm has interests in aluminium smelters in Canada and Australia. The firm has interest in Alouette smelter, which expanded the production capacity. The firm tries to acquire interests in new aluminium projects in 4-5 years while the firm tries to expand the existing projects.

The firm tries to reduce the investment by screening project severer than before under recession while the firm planned to invest 600 billion yen in 2 years to fiscal 2009 started April under the 2-year plan.