Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) has entered into a basic agreement with JX Nippon Mining & Metals Corporation, to sell its entire interest (22.63%) in Caserones copper mine ("Project") in Chile. In 2010, Mitsui acquired a shareholding in SCM Minera Lumina Copper Chile (Head Office: Santiago, Chile), the operator of the Project, through its investment company Mitsui Bussan Copper Investment & Co., Ltd. This transaction will be effective after the fulfillment of relevant condition precedent, of which completion is expected by the end of March 2021. Along with this transaction, wholly owned subsidiary Mitsui Bussan Copper Investment & Co., Ltd. will be dissolved and liquidated.

The Project was able to stabilize its production despite the challenges such as construction cost increase, and has become ready to enter into a new phase of further development. Since then, discussion to define a policy for future development took place among the relevant shareholders, whereas a result has been reached to execute a share transfer agreement.

In Mitsui's Medium-term Management Plan 2023, Mitsui states that it will evolve portfolio management as its corporate strategy. This sale was executed as a part of its reorganization and reconstructing of asset portfolio. Copper is an essential resource in the society, where Mitsui will continuously maximize its value of existing businesses and enhance our function through the value chain.

Mitsui expects to post approximately JPY 7.0 billion capital losses as a result of this sale, which is incorporated in our forecast for the fiscal year ending March 2021 announced on October 30 of this year.

Profile of Mitsui Bussan Copper Investment & Co., Ltd.