Mitsubishi Corporation ("MC") today completed the acquisition of 24.5% of Anglo American Sur, S.A. ("AAS") for US$5.39 billion . AAS is a Chilean copper mining and smelting company, wholly owned by Anglo American plc ("AAC"). The acquisition is the result of a sales process initiated by AAC.

 

AAS holds a significant portfolio of copper assets in Chile, including the Los Bronces mine, the El Soldado mine, the Chagres smelter and large-scale prospective exploration properties. They currently produce approximately 260,000 tonnes of copper per annum and the figure will rise to approximately 440,000 tonnes in 2012, after the completion of the Los Bronces expansion project.

 

As a result, MC's attributable copper production will rise from approximately 140,000 tonnes per annum to approximately 250,000 tonnes per annum in 2012.

 

MC has designated the expansion of high quality resource investments and the expansion of its resource portfolio with sustainable growth as an important area. Through this acquisition, MC will continue to grow its business.

 

MC also holds 8.25% of the Escondida copper mine, 5% of the Los Pelambres copper mine, and 25% of Compañía Minera del Pacifico (CMP) S.A., an iron ore production and sales company in Chile. Through these resource projects, MC contributes to the economic development of Chile and the stable supply of resources.

 

The impact of this acquisition on MC's consolidated earnings for the current period will be negligible. 

 

＜Appendix＞

 

1) Company information

     Location:                        Santiago, Chile

     Business:

      1. Operation of the Los Bronces copper mine and the production of copper concentrate, copper cathode and by-products (molybdenum)

      2. Operation of the El Soldado copper mine and the production of copper concentrate and copper cathode

      3. Production of copper anode at the Chagres smelter

     Shareholders:              Anglo American plc (100％)

     Copper production:     Approximately 260,000 tonnes in 2010

 

2) Copper assets of Anglo American Sur S.A.

Los Bronces is located 65 kilometers north-east of Santiago at 3,500 meters above sea level, and it produced approximately 220,000 tonnes of copper in 2010. In the upcoming years, Los Bronces will be the world's 5th largest copper mine by production. increasing copper production to approximately 400,000 tonnes (the first 10 years average), after achieving full production in 2012 as a result of the completion of the expansion project. Los Bronces is regarded as a world class "tier one" mine due to its significant production, competitive cost position and huge reserves. There are a number of projects under evaluation to deliver long term growth through the development of the Los Sulfatos Project and the San Enrique Monolito Project.

 

El Soldado is located 132 kilometers north of Santiago at 600 meters above sea level. In 2010, El Soldado produced approximately 40,000 tonnes of copper.

 

Chagres smelter is located 100 kilometers north of Santiago at 400 meters above sea level, and produced approximately 140,000 tonnes of copper anode* in 2010, from Los Bronces and El Soldado the copper concentrates.

*Copper Anode:Intermediate products in order to produce copper cathode from copper concentrate

 

Anglo American plc, founded in South Africa in 1917, is a the major mining company. Anglo American plc produces iron ore, coal, copper, nickel, platinum and diamonds. In 2002, Anglo American plc acquired AAS.