LONDON--(BUSINESS WIRE)--
This announcement is for our U.S.$5,000,000,000 Euro Medium Term Note Programme.
November 9, 2020
For Immediate Release
To whom it may concern
Mitsui & Co., Ltd.
Mitsui to Sell Its Interest in the Caserones Copper Mine in Chile and
Dissolution and Liquidation of a Subsidiary Company
Mitsui & Co., Ltd. (“Mitsui”, Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) has entered into a basic agreement with JX Nippon Mining & Metals Corporation, to sell its entire interest (22.63%) in Caserones copper mine (“Project”) in Chile. In 2010, Mitsui acquired a shareholding in SCM Minera Lumina Copper Chile (Head Office: Santiago, Chile), the operator of the Project, through its investment company Mitsui Bussan Copper Investment & Co., Ltd. This transaction will be effective after the fulfillment of relevant condition precedent, of which completion is expected by the end of March 2021. Along with this transaction, wholly owned subsidiary Mitsui Bussan Copper Investment & Co., Ltd. will be dissolved and liquidated.
The Project was able to stabilize its production despite the challenges such as construction cost increase, and has become ready to enter into a new phase of further development. Since then, discussion to define a policy for future development took place among the relevant shareholders, whereas a result has been reached to execute a share transfer agreement.
In Mitsui’s Medium-term Management Plan 2023, Mitsui states that it will evolve portfolio management as its corporate strategy. This sale was executed as a part of its reorganization and reconstructing of asset portfolio. Copper is an essential resource in the society, where Mitsui will continuously maximize its value of existing businesses and enhance our function through the value chain.
Mitsui expects to post approximately JPY 7.0 billion capital losses as a result of this sale, which is incorporated in our forecast for the fiscal year ending March 2021 announced on October 30 of this year.
Profile of Mitsui Bussan Copper Investment & Co., Ltd.
Company Name |
Mitsui Bussan Copper Investment & Co., Ltd. |
|
Location |
2-1, Otemachi 1-chome, Chiyoda-ku, Tokyo 100-8631, Japan |
|
Representative |
Masami Shiraishi |
|
Establishment |
April 1, 2010 |
|
Capital |
JPY 1 |
|
Main business |
Investments, loans, guarantees and related business of the Project. |
|
Shareholders and ownership |
Mitsui 100% |
|
Relationship with Mitsui |
Capital relationship |
Mitsui 100% |
Personal relationship |
Mitsui providing board member |
|
Business relationship |
Financial transaction between Mitsui & Co. Financial Services Ltd., which is subsidiary of Mitsui. |
|
Date of dissolution |
October 2021 （plan） |
|
For further information, please contact:
Mitsui & Co., Ltd.
Investor Relations Division Tel: +81-3-3285-7657
Corporate Communications Division Tel: +81-80-5912-0321
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.