Mitsui & Co., Ltd. (Mitsui) announces that approval has been granted to proceed with the A$674 million (A$202 million by Mitsui) Lake Lindsay metallurgical coal project in Bowen Basin, Central Queensland, Australia.

The Lake Lindsay project consists of a new mining area at the German Creek complex, owned by Mitsui Coal Holdings (30%), a wholly owned subsidiary of Mitsui, and Anglo Coal Australia (70%), of which the parent company is Anglo American plc (Anglo). Mitsui and Anglo will increase their annual saleable production at German Creek from 6 to 10 million tonnes ("Mt") per annum. The additional annual production will comprise 3.7 Mt of metallurgical coal and 0.3 Mt of thermal coal.

The Lake Lindsay project will also extend the mine life at German Creek by some 11 years, maintaining production until 2027 and realise marketing, infrastructure and operational synergies from the existing operations. The capital expenditure program will include new mining equipment, with significant expenditure on coal transport infrastructure and coal preparation and handling facilities.

Construction is due to start later this year with production coming on stream in late 2006.

This is the second major new project being undertaken by Mitsui and Anglo in Australia following the announcement of the Dawson Project late last year. The Lake Lindsay project will enhance strategic growth of Mitsui's investment in coal business, especially in the metallurgical coal market.

Mitsui intends to increase its "Equity Coal" tonnage from its current level of 8Mt through further investments including development of greenfield mining projects as well as expansion of existing mines.

LAKE LINDSAY FACT SHEET

Mitsui's Coal Mining Projects with Major Mining Companies in Australia