Participation in Bauxite Mining and Alumina Refining Project in Australia

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) will participate in the Worsley Alumina Unincorporated Joint Venture (“Worsley Alumina JV”), an integrated project for bauxite mining and alumina refining in Australia, through Press Metal Bintulu Sdn. Bhd. (“Press Metal Bintulu”). Press Metal Bintulu, which owns and operates an aluminium smelting plant in Sarawak, Malaysia, is 80% owned by Press Metal Aluminium Holdings Bhd. ("Press Metal") (the largest company in Malaysia in aluminum smelting and extrusion) and 20% owned by Bunga Raya Aluminium Sdn. Bhd., which is a subsidiary of Sumitomo Corporation. Press Metal Bintulu has acquired 50% of the interest in Japan Alumina Associates (Australia) Pty. Ltd., which has a 10% interest in the Worsley Alumina JV, from ITOCHU Minerals & Energy of Australia Pty. Ltd.

The Worsley Alumina JV is an integrated project that consists of two operations in the south west of Western Australia - a bauxite mine near Boddington and an alumina refinery near Collie ("Worsley Alumina Project"). The project has a production capacity of 4.6 million tons of alumina per year. Having started production in 1984, the project is said to lead the world in price competitiveness through large-scale integrated production while leveraging the rich reserves of high-quality bauxite. The indirect interest held by Press Metal Bintulu in the Worsley Alumina JV will provide it with the opportunity to access the annual production of the Worsley Alumina Project, which amounts to approximately 230,000 metric tonnes of alumina.

The manufacture of aluminum products starts with the mining of the material bauxite. This is turned into various products such as parts and cans through the refining of alumina (the intermediate material) and smelting of aluminum ingots, as well as the processes of rolling and extruding to produce aluminum sheets and profiles. Participation in the Worsley Alumina JV is part of Sumitomo Corporation’s material management strategies pursued under its press metal smelting project, which plays a core role in its aluminum-related business.

Sumitomo Corporation, foreseeing steady growth in demand for aluminum, strives to further expand its interest in cost-competitive aluminum smelting as well as to participate in corresponding upstream interests.

＜Reference＞

■Diagram of the investment scheme

■Sumitomo Corporation’s  Material Issues

The Sumitomo Corporation Group has defined the “Six Material Issues to Achieve Sustainable Growth with Society” as significant elements in formulating corporate strategies and in the decision-making processes in each business, thus aiming to achieve sustainable growth by solving issues through its business activities. This business contributes especially to “Achieving Harmony with the Global Environment” and “Contributing to the Development of Local Communities and Industries”.