Mitsubishi Corp to acquire interest in bauxite project in Australia
Mar. 24, 2021 - Mitsubishi Corp says it has reached an agreement with Swiss company Glencore Plc to acquire a 30% interest in the Aurukun Bauxite Project in Australia, currently wholly owned by Glencore.
In addition to Mitsubishi's existing aluminum smelting and trading operations, this acquisition marks its first investment in the mining of bauxite, a raw material of aluminum.
Mitsubishi's mineral resources group conducts business through investment and development of resources such as iron ore and aluminum, in addition to its core operations in metallurgical coal and copper, aspiring to improve global outcomes by contributing to the transition to a low-carbon/decarbonized society, and to create new values through digital transformation (DX).
With its unique lightweight properties and ability to be endlessly recycled, aluminum plays an important role in reducing greenhouse gas emissions, of which a particular case is when it is used to manufacture electrical vehicles where the lightness of material is integral. As the metal commonly used in construction such as sashes, walls, and roofing materials, and also as a lightweight material for automobiles to increase fuel efficiency, the global demand for aluminum has nearly doubled over the past ten years and is expected to continue to rise in the mid to long term.
The project is an undeveloped bauxite mine located in Queensland, Australia. Glencore is currently assessing the feasibility of developing the mine, and MC believes that this is a promising asset with competitive resource volume and production costs. Mitsubishi said that early stage development of the mine is feasible through joint operations with resources major Glencore.