Participation in Taganito Nickel Project in Philippine

LONDON--()--

This announcement is for our U.S.$5,000,000,000 Euro Medium Term Note Programme authorised by UKLA on 10th September 2009.

Mitsui & Co., Ltd.

Participation in Taganito Nickel Project in Philippine

Mitsui & Co., Ltd. ("Mitsui") announced today that Mitsui, Sumitomo Metal Mining Co., Ltd.(“SMM”) and Nickel Asia Corporation have signed an stockholders agreement under which Mitsui will participate in the Taganito Nickel Project (a total investment outlay of US$1.3 billion) currently being promoted by SMM as per the attached joint press release.

Please see below.

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Investor Relations Division
Telephone: +81-3-3285-7910
Facsimile: +81-3-3285-9819
E-Mail : infoTKADZ@mitsui.com

 

 

Mitsui & Co., Ltd.
Corporate Communications Division
Noriko Okamoto
Telephone: +81-3-3285-6645
Facsimile: +81-3-3285-9819

Notice:

This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.

This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Press Release


September 15, 2010
Sumitomo Metal Mining Co., Ltd.
Mitsui & Co., Ltd.

Stockholders Agreement Concluded on Taganito Project

Sumitomo Metal Mining Co., Ltd. (SMM: Nobumasa Kemori, President), Mitsui & Co., Ltd. (Mitsui: Masami Iijima, President and CEO) and Nickel Asia Corporation (NAC: Manuel B.Zamora, Jr., Chairman), the Philippines’ leading nickel mining firm, have reached an agreement under which Mitsui and NAC will participate in the Taganito Nickel Project currently being promoted by SMM in the Philippines. A stockholders agreement was concluded among the three companies on September 15. The project, which calls for a total investment outlay of US$1.3 billion, is being executed by Taganito HPAL Nickel Corporation (THPAL: Takanori Fujimura, President), a wholly owned SMM subsidiary based in Manila. NAC and Mitsui will join SMM by investing in THPAL. Once the investment by all parties is completed, the final shareholding ratios will be SMM – 62.5%, NAC – 22.5%, and Mitsui – 15.0%.

SMM decided to proceed with the Taganito Project in September 2009, and agreed with NAC on joint implementation of the project. Subsequent discussions were held with Mitsui concerning conditions under which it would also participate, and those discussions led to the final three-way agreement.

The Taganito Project calls for construction of a low-grade oxide ore processing plant adjacent to the Taganito Mine operated by the Philippines’ Taganito Mining Corporation (Gerard H. Brimo, President), a NAC subsidiary. The plant will apply high-pressure acid leaching (HPAL) technology to produce 30,000t (nickel metal equivalent) per year of nickel/cobalt mixed sulfide (nickel content: approximately 57%), an intermediate product of nickel processing.

SMM has already established mass-production of nickel/cobalt mixed sulfide based on HPAL technology under Coral Bay Nickel Corporation (CBNC: Takanori Fujimura, President), an affiliate company located in Rio Tuba, Palawan, the Philippines. Commercial production of the Coral Bay plant was started in 2005. The Taganito Project is a follow-up initiative aimed at securing further nickel resources in collaboration with Mitsui and NAC. When the Taganito operation is onstream in 2013, SMM will achieve a comprehensive capacity to produce 100,000t of nickel per year putting itself in position to become a major player in non-ferrous metals.

One of Mitsui’s key strategies is expansion of resource targets in line with the company’s resource interests, especially in non-ferrous metals which is an area projected to face a tight supply and demand balance on a global scale. To that end, in nickel operations Mitsui is already participating in developments such as CBNC led by SMM. Through its participation in the Taganito Project, Mitsui will expand its nickel business portfolio, further strengthen its network with excellent partners both at home and abroad, and continue its initiatives to acquire new interests.

Address inquiries concerning this Press Release to:

Sumitomo Metal Mining Co., Ltd.

Public Relations & Investor Relations Department : Masashi Takahashi
TEL: 03-3436-7705
FAX: 03-3434-2215


Mitsui & Co., Ltd.

Investor Relations Division: Naotaka Hayashi
TEL: 03-3285-7910
FAX: 03-3285-9819

Corporate Communications Division: Noriko Okamoto
TEL: 03-3285-6645
FAX: 03-3285-9819

Outline of the Taganito Nickel Project

1. Location

Taganito, northern Mindanao Island, the Philippines

(map omitted)

2. Products and output

Nickel/cobalt mixed sulfide, an intermediate product of nickel processing: approx. 50,000t (equivalent to 30,000t of nickel and 2,600t of cobalt) per year for 30 years.

3. Raw material

Low-grade nickel oxide ore (limonite) available at Taganito and nearby mines

4. Product usage

SMM will purchase the entire volume of nickel/cobalt mixed sulfide produced at the plant for use at it’s Niihama Nickel Refinery (Ehime, Japan), where it will serve as raw material to produce electrolytic nickel and cobalt.

5. Project schedule

September 2009:   SMM decided to proceed with the project; basic agreement on joint implementation is concluded with NAC
March 2010: Started of plant construction
September 2010: SMM, NAC and Mitsui conclude a project stockholders agreement
2013: Completion of construction and commercial production

6. Outline of Nickel Asia Corporation and THPAL

(table omitted)

7. Chart of Taganito Project relations

(chart omitted)

For diagrams omitted, please see our home page. (http://www.mitsui.co.jp/en/release/2010/1190642_3894.html)

Short Name: Mitsui & Co., Ltd.
Category Code: MSC
Sequence Number: 240279
Time of Receipt (offset from UTC): 20100915T082134+0100

Contacts

Mitsui & Co Ltd

Contacts

Mitsui & Co Ltd