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Mitsubishi Corporation To Provide Desalinated Water To Iron Mine in Chile With CAP
= To Cerro Negro Norte Iron Ore Mine from 2013 for 20 years =
Mitsubishi Corporation (MC) announced on Aug 9 that it agreed to participate in the procurement of desalinated water to the mining industry, together with CAP S.A. (CAP), Chile's mining and iron conglomerate. It will be the first time for a Japanese company to enter into this type of business.

MC, through Cleanairtech Sudamerica S.A. (CAT), which is a company jointly operated with CAP, will provide desalinated water to Cerro Negro Norte Iron Ore Mine from 2013 for approximately 20 years. The water will be supplied through a pipeline from a newly constructed desalination plant in the Copiapo region, located south of the Atacama Desert. The project cost is US$180 million, which will be one-third financed by equity and two-thirds by loans.

In parts of north of Chile, the shortage of underground water, which is utilized as industrial, household and agricultural water, has become a problem due to lack of snowfall. For new mine development, securing alternative water resource has become a requisite to obtain necessary environmental permits, which has rapidly increased the demand for water.

MC, under the Midterm Corporate Strategy 2012 which was announced in July 2010, has designated global environmental business as a strategic domains and is actively promoting water business through its Global Environment Business Development Group. By utilizing the know how and experience gained through its domestic and overseas water business operations, MC will promote this business together with CAP, MC's long term business partner, and plan to expand this water procurement business to neighboring mines.

Cleanairtech Sudamerica S.A. (CAT) is headquartered in Santiago, Chile, and its main business is desalinated water procurement to the mining industry. Shareholders are CAP (51%) and MC (49%). Representative is Roberto de Andraca A.
last modified : Wed 17 Aug, 2011 [14:17]
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