Mitsui & Co., Ltd. ("Mitsui") announced today that it will spend approximately US$396 million (37 billion yen) through its Australian subsidiaries to increase the capacity of iron ore operations in Western Australia, jointly operated with BHP Billiton and Itochu Corporation. This capital expenditure will be used for 50 million tonnes per annum (Mtpa) capacity increase to 205 Mtpa.
Staged expansion has been implemented to comply with increased global demand for iron ore, and the capacity expansion to 155 Mtpa is currently underway. The expansion to 205 Mtpa, mainly by enhancing Yandi operation, combined with the associated infrastructure upgrades of the Port Hedland and the duplication of railway track, is expected to be completed in CY2011.
Mitsui is engaged in the business through three iron ore joint ventures, namely, Mt. Newman, Yandi and Mt. Goldsworthy. The participating interests of BHP Billiton, Itochu and Mitsui in these joint ventures are 85%, 8% and 7%, respectively.
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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