Japanese nonferrous metals miners, smelters announce losses, job cuts

RENO, NV - One of Japan's leading smelters of zinc, copper and other nonferrous metals, Mitsui Mining & Smelting, announced Tuesday it will cut 20% of its workforce and will record its first loss in a decade. Mitsui said it expected a net loss of 35 billion yen (US$388 million) in the fiscal year ending in March, a substantial reversal from its originally projected profit of five billion yen (US$55.6 million). The company's profit was hit hard by weakening demand from automakers and display screen manufacturers, falling metals prices, and a stronger yen. Company spokesman Katsumi Shiraishi told Bloomberg News the company will eliminate 2,000 employees at its Yamaguchi and Fukuoka plants, 1,000 jobs at its U.S. factory, and 1,000 employees in other divisions, including research. Mitsui also trades in precious metals and has developed an assortment of processed metal products for the automotive and electronics sectors. An important part of Mitsui's business is copper mining and smelting. The company said it would cut its payrolls by the end of September through early retirements and a reduction in temporary workers. The parent company of Mitsui nonferrous rival Dowa Metals & Mining also revised its forecast Tuesday to announce a loss of 18 million yen (US$200.27 million) for FY2008 from April 1, 2008, to March 31, 2009, which is 30 billion yen (US$333.8 million) lower than previously predicted. In a news release, Dowa Holdings blamed the global economic downturn, the sharp downward trend of demand from the automotive and IT industries since the second quarter, the strong yen and falling metals prices for causing "significant deterioration in the company's earnings." "Consequently, although we are taking action to reduce costs, the damages caused by these rapid environmental changes is unavoidable," Dowa said. --mineweb.com