mitsubishi committed to investing 2 trillion

Source:http://www.reuters.com/article/2011/09/19/us-mitsubishi-idUSTRE78I4NO20110919

Mitsubishi committed to investing 2 trillion yen: Nikkei



Mon Sep 19, 2011 3:10pm EDT
(Reuters) - Mitsubishi Corp (8058.T) remains committed to investing about 2 trillion yen ($26.18 billion) through the next fiscal year, the Nikkei business daily quoted company president Ken Kobayashi as saying in an interview.

According to the business newspaper, the company plans to invest about half the amount in the natural resources and energy field, which it expects to show ongoing growth.

Kobayashi also told the newspaper that the company is currently studying the commercial feasibility of The Jack Hills iron ore project in Australia with a local resources firm and hopes to reach a conclusion by March 2012.

"The basic issue is the economics. It's a difficult decision, but we would like to undertake the project. The best thing would be if a customer (a steelmaker) would participate as a partner," Kobayashi told The Nikkei.

Talking about the global economy, Kobayashi told The Nikkei that it was a difficult time, and in addition to Europe's fiscal issues, the U.S. economic outlook is also a concern.

"Nations around the world will be holding elections next year, leading to a possible move toward protectionist policies favoring the home economy. Another focus will be whether countries are willing to offer cooperation such as fiscal assistance to other nations," he told the newspaper.

When asked how he would secure liquefied natural gas, domestic demand for which has risen since the March earthquake and tsunami, Kobayashi told The Nikkei that Mitsubishi aims to extend existing supply agreements with Brunei, Malaysia and others.

"We also hope to secure rights to overseas gas fields by joining hands with our customers -- domestic power companies and gas firms," he said to the business daily.