Japan Times reported that Sumitomo Metal Mining Co plans to increase mine exploration spending by 75% to a record level this fiscal year to increase its overseas mining interests.

Mr Nobumasa Kemori president of Sumitomo Metal Mining said that the Tokyo based company will spend JPY 7 billion in the year started April 1st 2011 from an earlier planned JPY 4 billion. The amount would be a record for the company.

He added that "Although it takes a long time to begin production, we prefer to explore mines on our own as we can get majority rights."

Mr Kemori said at a meeting with investors and analysts that of the total, the company plans to spend more than JPY 4 billion to find new mine deposits and the remainder to explore sites near existing mines.

In February 2010, Sumitomo Metal Mining said that it planned to spend JPY 190 billion under a three year business plan, mostly on doubling output of nickel to a target of 100,000 tonnes, including 65,000 tonnes of electrolytic nickel.

Mr Kemori said that the company aims to increase nickel output to 150,000 tonnes by 2020. It also plans to increase copper output from its own mining interests to 300,000 tonnes by 2020 from 180,000 tonnes and gold production to 30 tonnes from 20 tonnes.

(Sourced from www.japantimes.co.jp)