Metal Resources Production : Mitsui & Co., Ltd.

The recent rapid increase in demand for metal resources has made it more difficult to secure high-quality metal resources. Economic growth in China has been remarkable, and demand is expanding not only in China but in other newly emerging economies as well. Imports have increased dramatically in China, and it now accounts for more than 25% of global consumption for many metal resources. Although major international resource producers are in the process of increasing production capacity, it is becoming increasingly difficult to advance new large-scale projects, due mainly to high development costs.

Mitsui is focusing on expanding its nonferrous metals business, which includes copper, nickel and aluminum, among nonferrous metals. In Chile, Mitsui invested in Compania Minera Dona Ines de Collahuasi, a copper mine developing company, in 1996 and started commercial production of copper concentrate in 1998. It is now the fourth largest copper mine in the world. In Brazil, Mitsui has been working together with Vale S.A., the largest iron ore producer in the world, on creating new business opportunities by supporting Vale’s investment strategy in nonferrous metals. In the Philippines, the expansion of the Coral Bay nickel refining project was completed in 2009, and the Goro nickel project in New Caledonia is to commence the ramp-up for operation.
In addition, Mitsui purchased equity in Sims Metal Management Ltd., the world’s largest metal recycling company, in 2007 and became the largest shareholder. With metal scrap as the core, Mitsui is proceeding with its integrated recycling business for used household electrical appliances, printed circuit board, plastics, and so on.

By actively investing in nonferrous metals, Mitsui endeavors to secure a stable supply to the markets, as well as to conduct business by taking into consideration the environment and the social concerns of countries rich in resources.

(Update as of January, 2010)