Mitsubishi Corporation

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August 23, 2012

Mitsubishi Corporation Agrees on Transfer of 4.1% Shares in Chilean Copper Company

Mitsubishi Corporation ("MC") and Anglo American plc (“Anglo American”) agreed that MC’s UK subsidiary MCRD will transfer 4.1% of its shares in Anglo American Sur S.A. (“AA Sur”) (currently 24.5%) to Anglo American for the sum of US$895 million.
 
Anglo American will sell a 29.5% shareholding in AA Sur to Joint Venture between Chile’s state-run copper producer Corporación Nacional del Cobre de Chile (“Codelco”) and Mitsui & Co., Ltd. (“Mitsui”), comprising the 4.1% from MC’s MCRD and 25.4% owned by Anglo American. Following completion of these transactions, Anglo American will have a 50.1% shareholding in AA Sur, Joint Venture will have 29.5%, and MC will have a 20.4% shareholding, thereby forming a strong 4-company partnership. 
 
AA Sur is a copper mining and smelting company, controlled by Anglo American and 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.
 
Ken Kobayashi, President and CEO of MC, noted that “MC supports this agreement among the parties and we are pleased to know that our action contributed to reaching an agreement. In view of our long history of investment in Chile, and the growth seen both in Chile and at MC, we are currently seeking to expand our activities in the country. As an existing shareholder in AA Sur, we are happy to welcome Codelco and Mitsui to what we consider to be one of the most groundbreaking 4-company partnership imaginable in the industry”.
 
MC has designated high quality resources as a core area for investment. Since the establishment of its Chile Subsidiary in 1960, MC has been investing in a wide range of business ventures, including the production and marketing of copper, steel and iron ores. In the non-resource sector, MC has also invested in the import of machinery and equipment from Japan as well as the export of food products and commodities from Chile to Japan and other countries. Since last year, MC has been investing in the seawater desalination and salmon and fisheries businesses in Chile. 
 
Through these business activities and the AA Sur partnership, MC is committed to continuing its contribution to economic development in Chile and to maintaining a stable supply of resources to the market.
 
 
 


Appendix
 
1. Anglo American Sur S.A.
      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 anodes at the Chagres smelter
     Shareholders:    Anglo American plc (50.1%), Joint Venture (29.5%), Mitsubishi Corporation (20.4%)
     Copper production:   Approximately 270,000 tonnes (in FY 2011)
 
 

2. Anglo American plc
Since its establishment in South Africa in 1917, Anglo American has been one of the top mining companies in the world, with a range of mining activities including copper, nickel, platinum, diamonds, iron ore and coal.

3. Codelco
A state-run Chilean company with a number of copper mining and smelting operations across the country, Codelco is the world’s largest copper producer.

4.
MCRD(MC Resource Development Ltd.)
MCRD is Mitsubishi Corporation’s 100% subsidiary in U.K.

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