February 1, 2012
 

Mitsui plans to boost phosphate output in Peru

Mitsui & Co. plans to expand its Peruvian mine with JPY40 billion (US$0.52 billion) to boost its phosphate output which is a raw fertiliser material, reported the Nikkei.

It plans to boost the mine's output by half as early as 2014. Global demand for rock phosphate is rising as farm production expands to feed a growing population.

The Japanese trading company holds a 25% stake in the mine, located in the northern region of Bayovar. Brazilian mining giant Vale SA owns 51%, while US fertiliser maker Mosaic Co. (MOS) holds a 24% interest.

Production began in 2010. Annual output will reach 5.9 million tonnes as early as 2014, according to the expansion plans, which also call for building an additional processing plant.

Worldwide demand for rock phosphate totals about 180 million tonnes a year and is rising at an annual pace of 3%.

Japanese trading firms are making strategic bets on steady-earning food and fertiliser resources even as they invest aggressively in energy. Mitsui rival Mitsubishi Corp. acquired a 30% stake in a Peruvian phosphate mine this month in a joint deal with India's leading fertiliser producer. That mine is expected to churn out 2.5 million tonnes of rock phosphate a year starting in 2015.