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By MELODY M. AGUIBA Nitetsu, associated with Nippon Steel Corp. (NSC), Japan's largest steel producer, is looking into mining investments in the Philippines in light of renewed mining activity domestically that could beef up its raw material supply of metals for steel manufacturing. Edwin G. Domingo, assistant director of the Mines and Geosciences Bureau-Department of Environment and Natural Resources (MGB-DENR), said Nitetsu officials visited the Philippines to look into possible investments. "They're looking at developments in the Philippines for possible investments. They're still in the scanning stage. We've just showed them the 23 major mining projects and the 41 exploration prospects. Everybody's reading that the Philippines has changed its policy toward encouraging mining investments," he said in an interview. Even Nitetsu's possible mode of investment is in an evaluation stage. "There are different modes of investment. They can go into joint venture or they can go into forward sales where they'll finance the operations and buy the production. Money in mining is big. They wouldn't just come to the Philippines and bring the $300 or $400 million in an attaché case. They need to check the opportunities," he said. NSC produces 30 million tons of steel annually, making it Japan's largest steel producer . Its expansion is also believed to be in light of increased demand for steel in China and Asian countries. It manufactures steel plates, sheets, pipes, and tubes and specialty, processed steel products. Last year, NSC entered into a long term contract with Companhia Vale do Rio Doce in South America, world's largest iron producer, for the supply of 70 million tons of iron ore between 2005 and the end of 2014 Japanese fiscal year — March 2015. Nitetsu is also apparently eyeing metal sources as it has entered into a tieup with Sumitomo Metal Industries for the physical distribution, purchase of raw materials, material and machinery and management of neighboring steelworks for greater cost competitiveness. Under this tie-up, NSC is now using existing iron- and steelmaking facilities of Sumitomo Metals. Its business with Sumitomo also involves mutual supply of semi-finished and downstream products during relining of blast furnace and when needed, integration of stainless steel and welding materials businesses. NSC has agreements to supply hot coils to Sumitomo Metal following the restructuring of steel sheet production at Wakayama Works of Sumitomo Metal. NSC also has engineering, construction, chemicals, nonferrous metals, ceramics, electronics, information and communications, and urban development operations. Its expanding business also involves interest in East Asia United Steel Corporation (EAUSC), a holding company run by Sumikin Iron and Steel Corp. and where Sumitomo Metals has 55 percent interest, China Steel, 29 percent; Nippon Steel, 10 percent, Kobe Steel, two percent, and and Sumitomo Corp., 1.5 percent. Part of this EAUSC formation involves cooperations between NSC and its partners on research and development in upstream ironmaking and steelmaking, on cross-licensing and use of common resources, and on environmental projects and recycling to promote reduction in global warming. |