Actively securing mineral and metal resources and pursuing environmentally friendly business

In the Mineral & Metal Resources Business Unit, we secure mineral and metal resources by making investments in major overseas resource projects, endeavoring to ensure stable supply for Japan and other markets. However, we do not simply engage in resource development: we pursue business that is environmentally friendly and contributes to society in the countries that own the resources. We are also pursuing broad-ranging recycling business to accelerate the development of a recycling society.

Mine owned by Robe River Associates in Australia

Making active investments in resource development

At Mitsui & Co., we have been actively investing in the development of iron ore resources since the 1960s, and we continue to play a role in securing stable supply of iron ore. In 2003 we acquired a 15% equity stake in Valepar, the holding company of Vale (formerly known as Companhia Vale do Rio Doce), the world's largest iron ore producer. We also continue to expand our iron ore business with Rio Tinto and BHP Billiton. We rank fourth in the world in terms of volume of iron ore exported, with a mining equity basis production of more than 40 million tons annually. At the same time, we are also actively focusing on increasing our investments in non-ferrous metals such as copper, aluminium and nickel. As part of this, we acquired an equity position in Companhia Minera Dona Ines de Collahuasi, a copper mining company based in Chile that began commercial production of copper in 1998. In New Caledonia, we will commence the operation of the Goro nickel project in the first half of fiscal 2009. In China, we made an investment of ¥19 billion in Erdos Electrical Power & Metallurgy Co., Ltd. (Erdos EPMC), which is based in the Inner Mongolia Autonomous Region. We are developing stable ferrous alloy operations at Erdos EPMC, while also setting our sights on development of other businesses using Erdos EPMC's rich portfolio of coal and other resources.

Strengthening recycling business

We also focus on new business fields using the cross-organizational strengths that we have gained to date. In 2007 we took an equity position in Sims, the world's leader in metals and electronics recycling, aiming to reinforce our recycling business. (As of March 2009, our ownership interest was 19.9%.) We are actively engaged in recycling solutions business, with metal recycling as the core element but involvement also in recycling of "end of life" and redundant electrical and electronic equipment, tyres, plastics and so forth. Another area of new business we are seeking to develop is rare metals.