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MLLC Signs Loan Agreements for Caserones Copper and Molybdenum Deposit Development Project in Chile

Jul. 26, 2011


JX Nippon Mining & Metals Corporation
Mitsui Mining & Smelting Co., Ltd.
Pan Pacific Copper Co., Ltd.
Mitsui & Co., Ltd.


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SCM Minera Lumina Copper Chile held by Pan Pacific Copper Co., Ltd. (hereinafter "PPC"; head office: Otemachi 2-chome, Chiyoda-ku, Tokyo; president: Yoshimasa Adachi), an integrated copper enterprise jointly established by JX Nippon Mining & Metals Corporation (head office: Otemachi 2-chome, Chiyoda-ku, Tokyo; president: Masanori Okada) and Mitsui Mining & Smelting Co., Ltd. (head office: Osaki 1-chome, Shinagawa-ku, Tokyo; president: Sadao Senda), and Mitsui & Co., Ltd. (hereinafter "Mitsui"; head office: Otemachi 1-chome, Chiyoda-ku, Tokyo; president and CEO: Masami Iijima) today (July 26) signed loan agreements with related financial institutions for a total of 1.4 billion US dollars to finance the Caserones Copper and Molybdenum Deposit Development Project ("the Project"). PPC has a 75 percent interest in the Project, with Mitsui & Co., Ltd. holding a 25 percent interest. The initial investment for development (production facilities and related costs) is estimated at about 2 billion US dollars.

The loan agreements consist of two packages:
(1) A total of 1.1 billion US dollars (roughly 88 billion yen1) in project finance from the Japan Bank for International Cooperation (JBIC) and four private banks (Bank of Tokyo-Mitsubishi UFJ, Ltd., as administrative agent bank, with Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, and Hongkong and Shanghai Banking Corporation Limited)
(2) A total of 300 million US dollars (roughly 24 billion yen1) in long-term loans from five private banks (Bank of Tokyo-Mitsubishi UFJ, Ltd., as administrative agent bank, with Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, Chuo Mitsui Trust and Banking Co., Ltd., and Sumitomo Trust & Banking Co., Ltd.)

Nippon Export and Investment Insurance (NEXI) is to provide the four private banks in the first package with investment and loan insurance for natural resources and energy, while the Japan Oil, Gas and Metals National Corporation (JOGMEC) is to assume the project risk and provide the five private banks in the second package with liability guarantees for overseas development.

As a large copper and molybdenum mine development in which Japanese companies hold 100 percent interest, the Project is utilizing the full range of functions provided by Japan's major governmental institutions related to the natural resources sector, JBIC, NEXI, and JOGMEC, under the "one-stop-shop" structure2 adopted in the Japanese government's effort to secure access to mineral resources overseas.

An outline of the Project is attached. Development is making excellent progress and commercial production is expected to start on schedule in 2013.

The Project will increase the PPC Group's equity base entitlement volume of copper concentrate from neary 20% to approximately 50%. Thus it is expected not only to contribute to stable procurement for the Group but also to greatly enhance the stability of Japan's supply of metal resources. In addition, it will play a part in ensuring supplies of the rare metal molybdenum.

Mitsui & Co., Ltd. has positioned the mineral resources business as one of the key business focuses of the company. Moving this project forward, Mitsui & Co Ltd., will continuously strive to establish a more robust portfolio of copper projects and to acquire attractive metal mine assets by strengthening its global and domestic network with business partners.

1. At an exchange rate of 1 US dollar=80 yen.
2. A structure for the support of projects by Japanese companies to secure mineral resources overseas, in which the government (the Ministry of Economy, Trade and Industry and the Ministry of Foreign Affairs) and relevant governmental institutions (such as JBIC, NEXI, and JOGMEC) work in close collaboration and offer their respective support measures on a systematic basis.

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.

Information

For inquiries on this matter, please contact

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