Establishing an Unshakable Position and a New Earnings Model in Iron Ore Operations

A consortium formed by ITOCHU, five major Japanese steel producers (JFE Steel Corporation, Nippon Steel Corporation, Sumitomo Metal Industries, Ltd., Kobe Steel, Ltd., and Nisshin Steel Co., Ltd.), and Korea's largest steel company, POSCO, acquired a 40% stake in an iron ore producer and distributor, Nacional Minérios S.A. (NAMISA). As a result, ITOCHU acquired a 16% stake in NAMISA, which represents the largest stake among the companies in the consortium and ITOCHU's largest-ever investment in an overseas business. NAMISA's sales volumes are slated to increase steadily. Plans call from sales volume of 17 million tons/year in 2009, rising to 38 million tons in 2013. Furthermore, in this business project we have secured infrastructure to handle these future increases in shipment volumes through a long-term contract that includes the integrated operation of railway and port facilities.
This initiative will launch our full-fledged entry into the iron ore operations in Brazil, adding to our existing iron ore operations in Western Australia. Having steadily built its position in the industry, ITOCHU aims not only to increase earnings from this equity interest but also to expand iron ore trading centered on shipments to Japanese steel producers and POSCO. Moreover, by bolstering our relations with Companhia Siderurgica Nacional (CSN), which owns 60% of NAMISA's shares, we plan to target business opportunities in a wide range of business areas.