Sumitomo Metal Mining Co., Ltd. (Sumitomo) and Mitsui & Co., Ltd. (Mitsui) have decided to make an additional investment in the Goro nickel cobalt project in New Caledonia (the Goro Project) together with CVRD Inco Limited, the project operator.
The revised budget for the Goro Project is US$3.212 billion, an increase from the US$1.9 billion which was budgeted when Sumitomo and Mitsui entered into their agreements to join the project in 2005. Having regard to the increased cost of the project, both Sumitomo and Mitsui will make additional investments in the project via Sumic Nickel Netherlands B.V., the company established by Sumitomo and Mitsui to invest in the project, in order to maintain their existing 21% interest. The total budget for Sumitomo will be approximately US$286 million and for Mitsui will be approximately US$260 million.
The Goro Project will have an expected capacity of approximately 60,000 tonnes of contained nickel and approximately 4,600 tonnes of contained cobalt per annum. It is scheduled to commence operation in late 2008. The shareholders of the Goro Project are CVRD Inco Limited (a wholly-owned subsidiary of Companhia Vale do Rio Doce) (74%), Sumic Nickel Netherlands B.V. (jointly owned by Sumitomo and Mitsui) (21%) and Société de Participation Minière du Sud Calédonien SAS (jointly owned by the provincial governments of New Caledonia) (5%).
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.
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