Mitsui Expects Recognition of Impairment Loss for Moatize Business

LONDON--()-- 

This announcement is for our U.S.$5,000,000,000 Euro Medium Term Note Programme.

November 27, 2019

For Immediate Release
To Whom It May Concern

Company Name: Mitsui & Co., Ltd.
Representative: Tatsuo Yasunaga, President & CEO
(Code No.: 8031)
Head office: 1-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo

Mitsui Expects Recognition of Impairment Loss for Moatize Business

Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President & CEO: Tatsuo Yasunaga) has been developing the Moatize mine business ("Moatize project") and the Nacala Corridor rail & port infrastructure business ("Nacala project") (Moatize project and Nacala project collectively "Moatize business") with Vale S.A. ("Vale") in Mozambique.

While Mitsui is now reviewing the amount of proven reserves based on the new long-term mining plan for the Moatize project, we hereby inform that recognition of impairment loss for the Moatize business is expected. Examination on the impact is still ongoing and Mitsui shall make an announcement when completed.

The abovementioned impairment loss is not incorporated in the revised forecast for the fiscal year ending March 2020, which was announced on October 30, 2019.

【Moatize project】

Purpose of the project

Mining and sales of coal

Ownership portion

The holding company of Vale and Mitsui: 95%

(Vale’s subsidiary: 85%、Mitsui’s subsidiary: 15%)

Empresa Moçambicana de Exploração Mineira (EMEM): 5%

Investment and loan

Approximately US$300 million (book value) for Mitsui’s portion as of the end of September 2019

【Nacala project】

Purpose of the project

Transport and shipment of coal, general commodities and passenger

Ownership portion

The holding company of Vale and Mitsui: approx. 100% (not including minority share in Mozambique)

(Vale’s subsidiary: approx. 50%、Mitsui’s subsidiary: approx. 50%)

Investment and loan

Approximately US$600 million (book value) for Mitsui’s portion as of the end of September 2019

For further information, please contact:
Mitsui & Co., Ltd.
Investor Relations Division Tel: +81-3-3285-7657
Corporate Communications Division Tel: +81-3-3285-7618

Notice:

This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements. This announcement 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.

Short Name: Mitsui & Co., Ltd.
Category Code: MSCU
Sequence Number: 681141
Time of Receipt (offset from UTC): 20191127T003245+0000

Contacts

Mitsui & Co Ltd

Contacts

Mitsui & Co Ltd