Mitsubishi Corporation Files its Investment Decision to Iron Ore Project in Western Australia.Tokyo, Japan, June 18, 2007 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Mitsubishi Corporation Mitsubishi Corporation (三菱商事株式会社 ('MC'; TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 8058) is pleased to announce the execution of an agreement by its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. Mitsubishi Development Pty Ltd PTY LTD Propriety Limited (company structure in Australia) ("Mitsubishi") with Murchison Metals Limited ("Murchison") on the development of Murchison's iron ore assets in the mid-west region of Western Australia Western Australia, state (1991 pop. 1,409,965), 975,920 sq mi (2,527,633 sq km), Australia, comprising the entire western part of the continent. It is bounded on the N, W, and S by the Indian Ocean. Perth is the capital. (the "Agreement"). The Agreement also includes the joint development of the proposed associated mainland multi-user rail and port infrastructure and envisages a total investment of A$3.0 billion. Mitsubishi and Murchison will establish and jointly control two special purpose joint venture vehicles that will each own and actively develop the mining and infrastructure assets/opportunities. Mitsubishi will be the exclusive marketing agent in relation to all iron ore sales excluding supply to certain customer. In exchange for 50% ownership of the mining and infrastructure vehicles, Mitsubishi will: - Pay $150m upon completion of the definitive JV Agreements. - Pay a residual payment based on an agreed valuation of the Jack Hills project at or around the time of completion of a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. of bankable bank·a·ble adj. 1. Acceptable to or at a bank: bankable funds. 2. Guaranteed to bring profit: a bankable movie star. standard on the expanded Jack Hills operation, and associated infrastructure. Mitsubishi will manage the arranging of limited recourse Limited recourse A term describing a type of loan in which the lender has limited or no claim against the parent company if the collateral is insufficient to repay the debt. See:Nonrecourse. debt and, subject to final JV decision to proceed with the mine and infrastructure projects, will provide Murchison with additional funding support through the provision of subordinated loans and an overrun facility. The transactions contemplated by the Agreement are subject to negotiation and execution of a range of transaction documents. Both Mitsubishi and Murchison have agreed all key commercial principles are bound to use their best endeavours to negotiate in good faith the final form of the transaction documents. Mitsubishi welcomes the opportunity to work with Murchison in completing the necessary drilling for the mining project and in working with the Western Australian state Noun 1. Australian state - one of the several states constituting Australia province, state - the territory occupied by one of the constituent administrative districts of a nation; "his state is in the deep south" government and other key stakeholders in the pursuit of the infrastructure development. The Agreement confirms the confidence of both parties in the development of the Jack Hills project a world class operation forecast to expand to 26 Mtpa of high grade iron ore. It also provides for further significant value realisation through the potential development of Murchison's other tenements in the region. The Agreement will provide the necessary leadership to breakthrough the region's massive rail and port infrastructure impediments. The Joint Venture's accelerated development of the project will enable the region to capture the current market window which may well otherwise evaporate in the coming years because of supply competition from other regions and countries. Other regional mines will benefit from the accelerated infrastructure development. Having been present in the State for decades through HIsmelt and other investments and a long-term supporter of Western Australian development, this significant further investment and commitment reinforces Mitsubishi's confidence in the future of Western Australia. About Mitsubishi Development Pty Ltd Mitsubishi Development Pty Ltd ("MDP MDP Mot de Passe (French: Password) MDP Markov Decision Process (artificial intelligence) MDP Management Development Program MDP methylene diphosphonate MDP Millennium Democratic Party ") is Mitsubishi Corporation's wholly owned carbon steel raw material & energy resource mining arm based in Australia. Incorporated in 1968, MDP has long been engaged in investments, production and sales primarily in the coal sector including its 50/50 coking coal alliance with BHP Billiton BHP Billiton is the world's largest mining company.[1] Its origin is in the 2001 merger of Australia's Broken Hill Proprietary Company (BHP) and the UK's Billiton, which has a South African background. The result is a dual-listed company. in the Bowen Basin, Queensland. MDP is currently the third largest coking coal exporter in the world, and has recently expanded its scope to Uranium and now Iron Ore. About Murchison Metals Limited Murchison Metals is an ASX-listed iron ore company that owns the Jack Hills Project located in the northern corridor of the Mid West region of Western Australia. The Jack Hills Project contains a number of deposits of high grade hematite hematite (hĕm`ətīt), mineral, an oxide of iron, Fe2O3, containing about 70% metal, occurring in nature in red to reddish-brown earthy masses and in steel-gray to black crystalline forms. ore. Murchison Metals' high grade hematite ore can be mined and shipped directly to customers without further processing or concentration, which significantly improves the economics of the project and distinguishes Murchison Metals from many other iron ore producers. Stage 1 of the Jack Hills Project commenced in late 2006 and involves initial production of 1.5 million tonnes of iron ore per annum Per annum Yearly. expanding to 2 million tonnes per annum in 2008. In Stage 2, Murchison Metals proposes to increase annual production of direct shipping high grade ore up to 26 million tonnes per annum. Iron ore would be railed to a new port facility at Oakajee north of Geraldton for export to customers in North Asia. About Mitsubishi Corporation Mitsubishi Corporation is Japan's largest general trading company (sogo shosha) with over 200 bases of operations in approximately 80 countries worldwide. Together with its over 500 group companies, MC employs a multinational workforce of approximately 54,000 people. MC has long been engaged in business with customers around the world in virtually every industry, including metals & mining, energy, machinery, chemicals, food and general merchandise. For more information, please visit http://www.mitsubishicorp.com/en/index.html. Source: Mitsubishi Corporation Contact: Sadanobu Takemasu Mitsubishi Corporation Public Relations Office Tel.: +81-3-3210-2104 Fax.: +81-3-3210-2104 Japan Corporate News Network. All rights reserved. |
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