Japan’s Sumitomo Corp to inject 30 bln yen into SAfrican mining firm

June 25, 2008

June 25th (Trading Markets) – Japanese trading house Sumitomo Corp. plans to invest an additional 30 billion yen ($278.3 million) in South African mining company Assmang Ltd. to bolster its ability to supply steel raw materials to Japan and other Asian nations, the Nikkei reported on Wednesday without citing sources.

The investment will be made via Oresteel Investment Ltd., which owns Assmang.

In January, Sumitomo acquired a 20 percent stake in Oresteel and has since raised it to 29 percent.

By raising it again, to 49 percent this month, its effective interest in Assmang will rise from 8 percent to 13 percent, the report said.

The trading house’s total investment in Oresteel will total 45 billion yen, one of the largest outlays in South Africa by a Japanese firm.

Assmang has several mines, with annual output of 6 million tons of iron ore, 3 million tons of manganese and 1 million tons of chrome.

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