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Mitsui Expects Recognition of Impairment Loss for Moatize Business

Nov. 27, 2019


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President & CEO: Tatsuo Yasunaga) has been developing the Moatize mine business ("Moatize project") and the Nacala Corridor rail & port infrastructure business ("Nacala project") (Moatize project and Nacala project collectively "Moatize business") with Vale S.A. ("Vale") in Mozambique.

While Mitsui is now reviewing the amount of proven reserves based on the new long-term mining plan for the Moatize project, we hereby inform that recognition of impairment loss for the Moatize business is expected. Examination on the impact is still ongoing and Mitsui shall make an announcement when completed.
The abovementioned impairment loss is not incorporated in the revised forecast for the fiscal year ending March 2020, which was announced on October 30, 2019.

Moatize project

Purpose of the project Mining and sales of coal
Ownership portion The holding company of Vale and Mitsui: 95%
(Vale's subsidiary: 85%, Mitsui's subsidiary: 15%)
Empresa Moçambicana de Exploração Mineira (EMEM): 5%
Investment and loan Approximately US$300 million (book value) for Mitsui's portion as of the end of September 2019

Nacala project

Purpose of the project Transport and shipment of coal, general commodities and passenger
Ownership portion The holding company of Vale and Mitsui: approx. 100% (not including minority share in Mozambique)
(Vale's subsidiary: approx. 50%, Mitsui's subsidiary: approx. 50%)
Investment and loan Approximately US$600 million (book value) for Mitsui's portion as of the end of September 2019

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Investor Relations Division
Telephone: +81-3-3285-7657
Facsimile: +81-3-3285-9821
Contact form
Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-3-3285-7618
Facsimile: +81-3-3285-9819