Participation in a Power Plant Project in Hezhou, China

Dec. 21, 2011

Mitsui & Co., Ltd.
Electric Power Development Co., Ltd.
Development Bank of Japan Inc.

Main Contents

Mitsui & Co., Ltd. ("Mitsui"; head office: Chiyoda-ku, Tokyo; President & CEO; Masami Iijima), Electric Power Development Co., Ltd. ("J-POWER"; head office: Chuo-ku, Tokyo; President: Masayoshi Kitamura) and the Development Bank of Japan Inc. ("DBJ"; head office: Chiyoda-ku, Tokyo; President: Toru Hashimoto) will jointly participate in a power plant project in Hezhou (the "Project") being developed by China Resources Power Holdings Co., Ltd. ("CR Power"; head office: Hong Kong).

This Project is an IPP project in which an ultra supercritical (USC) coal-fired thermal power plant (1 GW x 2 units) will be newly constructed in Hezhou City, Guangxi Zhuang Autonomous Region, China, and this power plant will be the first such facility in this autonomous region. Compared to conventional power plants, USC power plants have higher thermal efficiency and reduced emissions of carbon dioxide. Therefore this Project will contribute to the stable supply of electricity, energy conservation and improvement of the environment in the rapidly developing Huanan region.

Mitsui, J-POWER and DBJ (the "Three Japanese Companies") signed agreements with CR Power in August 2010 to participate and jointly promote this Project. Further, in December 2010, J-POWER and DBJ invested in "JM Energy," a corporation established in Hong Kong as the investment company for this Project, and Mitsui subscribed convertible corporate bonds (the "Corporate Bonds"). Recently, Chinese government clearance has been obtained to permit the investment by Mitsui by way of conversion of the Corporate Bonds to common stock of the JM Energy, and thus the Three Japanese Companies will take a stake in this Project through JM Energy. (See the Scheme Diagram in Attachment 2).
Going forward, the Three Japanese Companies will jointly work to improve the Project's value and collaborate with CR Power in preparation for the start of operation of the No. 1 unit in August 2012 and the No. 2 unit in November 2012.

Mitsui will contribute to the development of a smooth operating structure for this Project by exploiting the know-how in project operations it has developed through numerous overseas IPP projects. In addition, this Project will be the first IPP project in China for Mitsui, and participation in this Project will bring the worldwide total net generation capacity of IPP projects in which Mitsui has a stake to approximately 5.7 GW, including projects which are currently under development. As world electricity demand increases in the future, Mitsui will contribute to the development of the world economy by further expanding its power projects as the core of its infrastructure business.

J-POWER will contribute to improving the profitability of this Project by applying its extensive knowledge of the construction and operation of previous coal-fired thermal power plants, and the experience it has developed through IPP projects and consulting projects in China. At present J-POWER has a stake in 28 currently-operating overseas IPP projects with a total capacity of approximately 3.55 GW (equity generation capacity), and going forward, in addition to this Project, J-POWER will steadily promote development projects in countries such as Thailand (9 projects, 3.98 GW) and Indonesia (1 project, 2 GW).

DBJ plans to provide optimal financial solutions for J-POWER and Mitsui's development of new power businesses in overseas, and at the same it will contribute to the transition to a low carbon society, and prevention of global warming, by improving generating efficiency in China. Going forward, DBJ will provide sophisticated financial services which integrate investment and loans, and work hard to address the issues faced by customers in preventing global warming, and dealing with other issues in the energy/environment field.

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.


For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-80-5912-0321
Facsimile: +81-3-3285-9819
Contact form
Nakatani or Hoshino, Public Relation Office
Telephone: +81-3-3546-2211 (Rep.)
Okita, Public Relations & Corporate Social Responsibility Office, Corporate Planning & Coordination Department
Telephone: +81-3-3244-1180