October 2, 2008
M’Bishi Materials to Redevelop Idle Canadian Copper Mine
Tokyo, Oct. 2 (Jiji Press)--Mitsubishi Materials Corp. said Thursday it has reached a basic agreement to redevelop an idle copper mine in British Columbia, Canada, in a bid to secure stable supply of raw materials.
Judging copper ore prices will keep rising for a long term, the Japanese firm decided to obtain a 25 pct stake in the owner of the Simlco mine, Copper Mountain Mining Corp., for 28.75 million Canadian dollars and provide the joint development partner with 250 million Canadian dollars in project loans.
The two companies plan to restart production at the mine in the first quarter of 2011, and Mitsubishi Materials is entitled to purchase all the copper concentrate output estimated at 150,000 tons a year.
Production at the Simlco mine originally started in 1923 but was halted in 1996 due to low copper prices.END
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