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Official Opening of Caserones Copper Mine in Chile and Start of Copper Concentrate Shipment

Aug. 1, 2014


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


Main Contents

Pan Pacific Copper Co., Ltd. (president: Shigeru Oi), an integrated copper enterprise jointly established by JX Nippon Mining & Metals Corporation (president: Shigeru Oi) and Mitsui Mining & Smelting Co., Ltd. (president: Sadao Senda), and Mitsui & Co., Ltd. (president: Masami Iijima) announced that SCM Minera Lumina Copper Chile ("MLCC"; CEO: Nelson Pizarro), operator of the Caserones Copper Mine, held an opening ceremony for the mine on July 30th local time in Santiago, one day after the first shipment of copper concentrate left for Japan.

The ceremony was attended by more than 500 persons, including Japanese Prime Minister Shinzo Abe, Chilean Mining Minister Aurora Williams, and other government officials from Japan and Chile, along with representatives from partner companies, financial institutions, local parties, and others involved in the project.

The Caserones Copper Mine is a resources development project wholly owned by Japanese companies, which has been under way for eight years since the mining concession was acquired in 2006. Production of refined copper began in March 2013 and of copper concentrates in May 2014. The volume of copper concentrates to be produced here is equivalent to around 10 percent of the Japanese import volume. It is expected to contribute to the stable supply of copper resources to Japan through the year 2040. The development of the project is also important for the growth of the Chilean economy, and each of the companies investing in it will provide support toward stable operation by MLCC, helping to strengthen ties between Japan and Chile.

On July 29th, the Koryu carrier ship set out from the Chilean port of Coquimbo loaded with approximately 5,000 tons of copper concentrate. The ship is expected to arrive at the Saganoseki Smelter & Refinery of Pan Pacific Copper in late September.

Ribbon-cutting at the opening ceremony

Ribbon-cutting at the opening ceremony From left: Masami Iijima (President and CEO of Mitsui & Co.), Sadao Senda (President and Representative Director of Mitsui Mining & Smelting), Fumiaki Watari (Honorary Executive Consultant of JX Holdings), Yasushi Kimura (Chairman of the Board of JX Holdings),
Hidenori Murakami (Ambassador Extraordinary and Plenipotentiary of Embassy of Japan),
Shigeru Oi (President and CEO of JX Nippon Mining & Metals), Shinzo Abe (Japanese Prime Minister),
Nelson Pizarro (CEO & General Manager of MLCC), Aurora Williams (Mining Minister), Máximo Pacheco (Energy Minister),
Miguel Vargas (Governor of Atacama Region), Osvaldo Delgado (Mayor of Tierra Amarilla)

Loading the initial shipment of Caserones copper concentrate onto the Koryu carrier ship

Loading the initial shipment of Caserones copper concentrate onto the Koryu carrier ship

An outline of the Caserones Copper Mine

1. Location

162 kilometers southeast of Copiapo, the capital of the Atacama Region of Chile, and 15 kilometers from the border with Argentina. The deposits lie at altitudes between 4,200meters to 4,600meters above sea level.

Location

2. History

May 2006 Pan Pacific Copper acquired the mining concession
Sep. 2009 Decided to move the project into the feasibility study stage
Feb. 2010 Decided to construct the mining and production facilities
Mitsui & Co. participated in the project
Mar. 2013 Obtained the first refined copper by hydrometallurgical SX-EW process
May 2014 Commenced production of copper concentrate

3. Equity shares in MLCC

Pan Pacific Copper 77.37% (JX Nippon Mining & Metals 66%, Mitsui Mining & Smelting 34%)
Mitsui & Co. 22.63%

4. Expected Mine Life

28 years (2013~2040)

5. Production Process

Production Process

6. Expected Production Volume: (All numbers are approximate)

Please scroll horizontally to look at table below.

(Initial Ten Years)
    Annual average
Copper Concentrate
(copper content)
150,000 t/y
Refined copper 30,000 t/y
Total 180,000 t/y
Molybdenum 3,000 t/y

Please scroll horizontally to look at table below.

(28 years)
    Annual average Total for 28 years
Copper Concentrate
(copper content)
110,000 t/y 3,140,000 t
Refined copper 10,000 t/y 410,000 t
Total 120,000 t/y 3,550,000 t
Molybdenum 3,000 t/y 87,000 t

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.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Shuhei Iwanaga
Telephone: +81-3-3285-7596
Facsimile: +81-3-3285-9819