Mitsui & Co., Ltd. ("Mitsui", head office: Chiyoda-ku, Tokyo; President & CEO: Masami IIJIMA) and Nippon Steel & Sumitomo Metal Corporation ("NSSMC", head office: Chiyoda-ku, Tokyo; Chairman & CEO: Shoji MUNEOKA) are pleased to announce that Robe River Iron Associates ("Robe River J/V", Rio Tinto 53%, Mitsui 33%, NSSMC 14%) has agreed to invest in the development of Deposit B ("the Deposit") in West Angelas mine and expansion of its production capacity, owned by Robe River J/V in the Pilbara region of Western Australia.
The Deposit is expected to start production in January 2015. Upon completion, total production capacity at West Angelas, from the Deposit together with existing deposits, will be expanded from the current 29 million tons per annum ("mtpa") to 35 mtpa ("Mine Expansion"). Mine Expansion will increase Robe River J/V nameplate capacity by 6 mtpa.
Total capital cost for Mine Expansion is estimated to be A$642 million (57.8 billion yen), of which Mitsui will invest A$212 million (19.1 billion yen) and NSSMC will invest A$90 million (8.1 billion yen), in proportion with their respective ownership interests.
Through Robe River J/V, Mitsui and NSSMC will continue their effort to enable a stable supply and procurement of iron ore for which the global demand is expected to further grow.
Map of Pilbara region
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.