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Oil and Gas Upstream Concessions
Platform in Al Karkara Oil Field, Offshore Qatar
Sojitz intends to expand prime concession assets and continue diversified investments in oil and gas upstream concessions through our unique worldwide networks. In addition to existing assets in the U.K. North Sea, the U.S. Gulf of Mexico, Qatar, Gabon, Egypt, and Brazil, Sojitz is actively working to acquire large onshore oil fields by closely examining the reserves and development risks. Another area of focus is the development of unconventional shale oil and tight oil in the United States, where we have expertise as an operator.
LNG Business
Tangguh LNG Base, Indonesia
Sojitz is reinforcing its LNG business, an environmentally-friendly clean energy source, for the stable LNG supply to power and gas companies in Japan and fast growing Asian countries. We invest in large scale LNG businesses in Asia and Middle East through LNG Japan Corporation, a group company owned 50% by Sojitz and 50% by Sumitomo Corporation that has experience and expertise in LNG for over 30 years. We will also consider participation in cost competitive LNG projects in regions such as Africa, which are rich in reserves with immediate export capabilities.
Oil and Gas Midstream and Downstream Business
Sojitz Brand Hasuda Service Station
In the oil and gas midstream and downstream business, we trade petroleum products through a subsidiary in Singapore. In Japan, we handle trading and sale of crude oil and petroleum products. We are also engaged in the management of gasoline stations run by Sojitz Energy Corporation, as well as petroleum product and chemical tank facility business run by Tokyo Yuso Corporation, which are both subsidiaries of Sojitz. We will work to improve our profit earning capacity even further.
Coal Business
Jellinbah Coal Mine, Australia
Sojitz coal business consists of trading and investments, from which we work to generate synergies. We conduct acquisition of interests in coal mines overseas and offshore trade on the basis of coal import business for Japanese steel mills, power utilities, and other general industries. As the leading importer of coal from Russia and Indonesia, we are striving to expand sales volume into Japan from these countries. At the same time, China is another area of strong demand, where we engage in sales activities through a coal sales affiliate established in China. Where investments in upstream concessions are concerned, Sojitz was the first Japanese company to acquire coal interests in Indonesia in the 1980s and we now operate mainly in Australia and Indonesia. In Australia, we enhance our capabilities in mine operation by independently operating the Minerva Coal Mine where we hold 96% interest. We will work to improve profitability and also create opportunities to develop excellent coal mines in the future by acquiring operational expertise. We also have our eyes on Mongolia, Africa, and Russia, aiming to increase rare coking coal trading volumes.
Nuclear Fuel Business
Areva Group, GB-II plant , France
Since the 1970s, Sojitz has acted as the distributing agent in Japan for France’s Areva NC, the world’s top integrated nuclear fuel cycle company. The division provides a full range of products and services to Japanese power utilities. We also support overseas reprocessing of spent nuclear fuel from these same utilities. Moreover, through our affiliate companies, we sell a variety of equipment, fuels and materials related to nuclear power plants. We will continue to expand our business range as a partner to the Areva Group.
Renewable Energy Business
ETH Bioethanol Plant, Brazil
The division has been active in the field of non-fossil energy. Within the renewable energy segment, efforts are being made in the bio-fuel business in particular. Our sugarcane based bio-ethanol and crude sugar manufacturing business in Brazil is one of the largest projects that integrate cultivation of sugar cane and production and sale of bio-ethanol and sugar. Nearly 100% of the water used in bio-ethanol production is re-used, and the sugarcane residue (known as bagasse) is used for electric power generation, making this a very environmentally-friendly business. With a total of nine plants operating, including the ones constructed in 2011, the project aims to acquire a leading 5% to 10% share of the sugarcane crushing volume in Brazil by 2021.
Iron Ore Business
Southdown Magnetite Mine Site, Australia
In the iron ore business, Sojitz is one of the leading Japanese trading companies to import iron ore to Japan, mainly from Brazil. In conjunction with Japanese steel companies, we have invested in an iron ore pellet manufacturing business in Brazil. Going forward, we will enhance sales of iron ore not only to Japan, but also to third countries where demand is increasing such as China. Regarding investment in upstream concessions, we acquired our first iron ore mining concession in Western Australia in 2007. We are in the final phase of feasibility study towards the decision for development, where we aim production to start in 2015. We are committed to bringing these new and growing businesses on track.
Steel Products Business
Metal One Coil Centre, Mexico
Metal One Corporation (a joint venture owned 40% by Sojitz and 60% owned by Mitsubishi Corporation) is Japan’s largest trading company in the steel products business. Through this company, Sojitz is taking steps to maintain and expand its domestic trading of steel products as a dominant player. At the same time, Sojitz continues to build global value chains by further enhancing energy industry-related steel products trading and overseas steel products transactions through collaboration between the steel business and its numerous other business. Moreover, Sojitz aims to expand the group’s overall earnings through cooperation with the iron ore business as well as with integrated business development ranging from raw materials to steel products.
Ferroalloy Business
CBMM Araxá Niobium Mine, Brazil
Sojitz invests in a number of rare metal used for steel production such as, molybdenum, tungsten, vanadium, nickel, cobalt, chrome, and niobium. Our trading activities cover a wider range of rare metal on top of our asset portfolio. Having started our first rare metal investment in the early 1990s, it is an area of our expertise. In addition to reinforcing our existing fields, we continue to acquire competitive investment assets. As awareness of environmental issues and energy savings grow, the usage of rare metals for lightweight high-grade steel sheets used for automobiles will enable fuel efficiency and demand is expected to grow. Presently we invest in the above-mentioned seven rare metals in Canada, Portugal, South Africa, the Philippines, and Brazil, comprising a balanced portfolio in metal types and regions. The Endako molybdenum mine in Canada and CBMM niobium mine in Brazil are two of the main businesses of the Ferroalloy Department where investment and trading take an important role. At Endako, an expansion project to increase production capacity was completed in February 2012. Sojitz acquired shares to CBMM in 2011 with a Japan-Korea partnership group consisting of Nippon Steel Corporation, JFE Steel Corporation, JOGMEC, POSCO, and National Pension Service, a Korean governmental pension fund.
Industrial Minerals Business
Sunland (Qingyang) Limestone Mine, China
We have an edge in the industrial mineral products business and maintain a high share in the Japanese market by providing a wide variety of raw auxiliary material for iron and steel production, such as fluorite and dolomite, and refractories which are used in the facilities of steel production. In addition to the trade business, in 2011, Sojitz became the first Japanese trading company to invest in a lime production business in China. The high quality limestone sources are processed in burning facilities, utilizing burning technology of our Japanese partner company. The produced lime will be sold mainly to the Chinese domestic market. In addition, we will enhance business of mineral sands such as ilmenite and rutile, which are raw materials of titanium oxide, to develop a value chain of mineral sands from upstream and midstream to downstream.
Non-ferrous and Precious Metals Businesses
Gibraltar Copper and Molybdenum Mine, Canada
The division promotes marketing and trading of alumina, copper, zinc, and precious metals, together with the two pillars of upstream investments of bauxite & alumina and copper concentrate to secure stable earnings. We participate in an alumina refining business in the Worsley Project in Western Australia (owned 9% by Sojitz) under partnership with BHP Billiton, one of the world’s largest resource firms. We are working to increase refining capacity to meet growing demand for alumina. After completion of the expansion project in FY2011 annual production capacity will reach 4.6 million tons in FY2012. In 2010, Sojitz acquired a 25% interest to the operating Gibraltar copper mine in Canada jointly with Furukawa Co., Ltd. and DOWA Holdings Co., Ltd. The current expansion will increase its production capacity by 60% in 2013. Moreover, we are also conducting exploration in copper deposits in Chile and Laos and through these activities, efforts are being made to seek opportunities for the acquisition of new concessions.
