News Release


August 5, 2008

Changzhou Jinyuan Copper Co., Ltd. to construct new production facility for copper wire rods

Changzhou Jinyuan Copper Co., Ltd. (Head office: Changzhou, Jiangsu, P.R.C.; hereinafter “Changzhou Jinyunan”), a subsidiary of Nippon Mining & Metals Co., Ltd. engaged in the production of copper wire rods, has decided to make a capital investment of RMB 200 million to build a state-of-the-art production facility with a capacity of 300,000 tons per annum, in order to meet the recent sharp rise in demand for high quality copper wire rods in the Chinese market. Construction of the facility will be completed, and operation started, in the middle of 2010.

Changzhou Jinyuan, which began commercial production with a capacity of 100,000 tons per annum in 1997, has been steadily expanding its business under the slogan of “First-class in the world, No. 1 in China.” It has enjoyed the reputation of No.1 quality in China, with its current annual production capacity of 190,000 tons. However, the recent sharp rise in demand for high quality copper rods caused by China's rapid economic growth has required Changzhou Jinyuan to increase production capacity to satisfy demand. Completion of the new facility, resulting in a 300,000 ton annual production capacity, will allow us to meet increased demand and handle higher quality requirements. The existing facilities will continue to be utilized to produce preproduction prototypes, custom-made items and others.

The Nippon Mining & Metals Group will have the full-backing of the new production facility at Changzhou Jinyuan, to expand their business in the burgeoning Chinese market.

Outline of Changzhou Jinyuan Copper Co., Ltd.

1. Established March, 1994
2. Location Changzhou, Jiangsu, P.R.C. (site area of the plant: 125,000m2)
3. Paid-in-capital RMB 177,200,000
4. Equity ownership Nippon Mining & Metals Co., Ltd. 58%
Tatsuta Electric Wire & Cable Co., Ltd. 3%
Lontic (H.K.) Ltd. 36%
(an investment subsidiary of Minmetals Resources Co., Ltd.)
5. Number of employees 250
6. Sales volume 189,000 tons (actual, fiscal 2007 )
7. Net sales RMB 8,252 million (actual, fiscal 2007 )

Changzhou Jinyuan Copper Co., Ltd.Changzhou Jinyuan Copper Co., Ltd.