Japan Mitsui to invest $154 mln in Erdos Electrical
News Archive - Coal & Electric Power -September news )
(China Coal Resource, Sep 07, 2006) Mitsui & Co., Japan's second-biggest trading house, said on Thursday it will acquire a 25 percent stake in Erdos Electrical Power & Metallurgical Co., a Chinese ferrous alloy and coal producer for about 18 billion yen ($154 million). 
 
Mitsui's share purchase in Erdos Electrical Power will be its biggest investment in a single project in China, it said.
 
It said it will help supply ferro-silicon and other ferrous alloy products to Japan and other export markets. Ferro silicon is used in steelmaking processes.
 
"Mitsui also envisages gaining a foothold in the power generation and coal development businesses in China through this investment," it said in a statement.
 
Established in 2003, Erdos Electrical Power, a unit of Erdos Cashmere Group, has utilized rich local coal reserves to engage in four pillar businesses around Erdos city in line with the Chinese government's development strategies in the western region. These businesses are power generation, coal mining, ferrous alloy production and water pumping from the Yellow River.
 
Erdos Cashmere will own 70.8 percent of Erdos Electrical after Mitsui's planned investment.
Source:China Coal Resource
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