Mitsubishi to Start Operations of Raw Material Mine Projects

Mitsubishi Corporation’s metals group plans to reduce capital expenditure in fiscal 2009 (Apr09-Mar10) to improve the balance sheet. The group has gained equities in favorable mine projects of iron ore, coal, uranium and nickel. Then the group aims to incorporate these projects within 3-4 years. Meanwhile the group eyes to acquire new rights in aluminum and copper mines. The group will continue strategic investment for favorable projects, especially in USA and emerging countries.

Mitsubishi Development, the firm’s subsidiary acquired the whole equity in New Saraji Coal Mine project from New Hope of Australia at AUD 2.45 billion. Mitsubishi Development also acquired interests in Kintyre Uranium project with Cameco of Canada from Rio Tint at US$ 495 million, starting the production in 2013-2014. The group took 33.4% stake in Strand Minerals Indonesia at US$ 145 million from Eramet in fiscal 2008 to start the production within around 15 years.

The group forecasts the consolidated net profit at 79 billion yen in fiscal 2009, in which raw material accounts for 80-90%. The profit expanded by 37% to record 216.7 billion yen in fiscal 2008 from fiscal 2007 thanks to the selling price improvement at Mitsubishi Development and price upsurge of copper and aluminum in the first half year. The group’s raw material profit accounted for over 60% in consolidated net profit.