Tokyo (JCN) - Mitsui announced today that it had reached a basic agreement with Erdos Electrical Power & Metallurgical Co., Ltd. in Inner Mongolia, China, to acquire a 25% share in Erdos EPM through a third-party allotment of newly issued shares and a purchase of shares from an existing shareholder. The total investment amount, which is expected to be approximately 18 billion yen, represents Mitsui's largest ever investment in a single project in China.
Erdos EPM, part of the Erdos Group, currently utilizes rich local coal reserves to operate four major businesses around Erdos City in the Inner Mongolia Autonomous Region: power generation, coal mining, ferrous alloy production and water pumping from the Yellow River.
Mitsui will assist in the stable supply and the marketing of ferro-silicon and other ferrous alloy products in Japan and other export markets. Mitsui also hopes to gain a foothold in the power generation and coal development businesses in China, thus contributing to the economic development of the Inner Mongolia Autonomous Region in accordance with China's West Development Strategy.