Mitsui & Co Limited has invested an additional JPY 4.5 billion in Erdos Electrical Power & Metallurgical Company Limited of Inner Mongolia Autonomous Region.

Mitsui's added investment, which constitutes part of a JPY 18 billion increase in capital by EPMC, is consistent with Mitsui's previous percentage stake in the company. Through this additional investment, Mitsui maintains its 25% ratio of shares issued by EPMC, bringing Mitsui's total investment in the company to JPY 23.5 billion.

The Inner Mongolia Autonomous Region where EPMC is located has achieved the highest rate of GDP growth in China eight years running. Moreover, EPMC's coal reserves and its power generation operations that draw on those reserves lend the company sound competitive strengths. Since 2007, when Mitsui began equity participation, EPMC has continued to take up the challenges presented by the rapid economic growth of China's inland areas, as it expands operations centered on power generation, coal mining, ferrous alloy production, and water pumping from the Yellow River.

1. EPMC capitalization after Mitsui's investment
Erdos Cashmere Group Co Limited: 60%
Mitsui & Co Limited: 25%
Others: 15%

2. Overview of EPMC
Establishment: April 2003
Capital: JPY 6.5 billion
Location: Qipanjing Industrial Park, Erdos City, Inner Monglia, China
Major Business Operations:
Ferrosilicon (550,000MT/year)
Silicomanganese (150,000MT/year)
Ferromanganese (190,000MT/year)
Coal (approx. 500,000MT/year)
Power 1,720,000KW/h
Chemicals Carbide (130,000MT/year)
Water pumping approximately 45 million tonnes per year
Number of employees: 11,397 (as of the end of February, 2010)