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) have reviewed the investment to develop the Caserones Copper and Molybdenum Deposit Development Project (hereinafter "the Project"), taking stronger Chilean peso against the US dollar led by higher copper price, inflationary effects on construction materials, equipments and labor costs and engineering design development into consideration. As a result, estimates for the capital expenditure (production facilities and related costs) for the Project is increased to approximately US$ 3 billion from original estimates of US$ 2 billion. Despite the increase in the capital expenditure, we believe that the Project still has sufficient economics driven by the increase in copper price.
Additional funding from each shareholders shall be provided to SCM Minera Lumina Copper Chile (head office: Santiago, Chile; percentage of investment: PPC 75%, Mitsui 25%), the project company, as necessary.
Construction of the project is progressing in line with the original schedule. Detailed engineering and construction of the camp and access roads to the mine site have been mostly completed. The groundwork for each of the facilities has started and it is expected that the commercial production will commence in 2013 as planned originally.
PPC and Mitsui will continuously strive for the smooth development of the Project.
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 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, 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.