Sixty-Four Million Tonnes of Pilbara Iron OreNarrow moat

Mitsui & Co. (8031) — moat facet

Mitsui's biggest profit comes from iron ore mines it has owned a piece of since 1965 and does not run.

Mitsui's largest single business is iron ore, and it does not operate a single mine. Its iron ore business earned approximately ¥260 billion in the year to March 20261, about 31% of the company's net profit of ¥834.0 billion2, from minority stakes in mines run by Rio Tinto, BHP and Vale. Its equity share of production was 63.8 million tonnes, including 22.5 million tonnes from Vale3.

Australian iron ore contribution (¥ bn, years to March)268.12024233.62025218.72026Mitsui Integrated Report 2026, major affiliates by segment
The largest profit pool, down a fifth in two years with the price.

The stakes are old, which is the point. Mitsui joined Robe River in Australia in February 1965 and signed a long-term purchase agreement for Mount Newman ore in October 19664. It participated in MBR in Brazil in 1971, a business that became part of today's Vale5. An investor arriving now would have to pay for the same position at today's prices, which is exactly what Mitsui did at Rhodes Ridge in 2025, paying $5,342 million for 40% of an undeveloped deposit6.

The profit breaks down into three pieces. The Australian iron ore business contributed ¥218.7 billion, down from ¥268.1 billion two years earlier; the Vale dividend contributed ¥43.5 billion7. The segment that holds them, Mineral & Metal Resources, earned ¥253.6 billion on ¥4,313.2 billion of assets, a return of 5.9%, the highest of Mitsui's seven segments89. It also produced ¥330.4 billion of core operating cash flow, a third of the company's total10.

What the stakes do not give Mitsui is any control over price. The company's sensitivity is ¥3.0 billion of net profit for every dollar a tonne, excluding the Vale dividend11, and it does not disclose the iron ore price it assumes for the current year12. The mines are low-cost enough to earn through a weak year, but the business is a share of a commodity, and its profit fell by a fifth in two years as the price fell.

The published sensitivity covers only part of the exposure. Mitsui gives ¥3.0 billion per dollar a tonne for iron ore, ¥0.3 billion per dollar for metallurgical coal and ¥0.5 billion per $100 a tonne for copper13, the last assuming $12,000 against an actual $9,939 in the latest year14. The reference iron ore price was $100 a tonne for 61% iron content and $103 for 62%15.

The profit is concentrated in Australia but the ore is not all Australian. Of 63.8 million tonnes of equity production, 22.5 million came from Vale16, which is why the iron ore business earns two different kinds of income: a share of profit from the Australian ventures and a dividend from Brazil.

The advantage is narrow: position, partners and time, none of which a rival can buy quickly, attached to a product whose price is set in China. The measure is the Australian iron ore contribution. It fell from ¥268.1 billion to ¥218.7 billion in two years17; a fall below ¥200 billion with volumes unchanged would say the price, not the position, is doing the work.

Moat trajectory: Holding steady

Equity volume is flat at about 64 million tonnes and rises only after Rhodes Ridge; profit fell with the price.

The number that tests this moat
Reported
Iron ore business profit, latest year
approximately ¥260bn, about 31% of net profit

The largest single profit pool; a fall with unchanged volume measures the price, a rise with Rhodes Ridge measures the position.

Source: Mitsui & Co. Integrated Report 2026, Our Edge ↗
Aspects of the moat
DIG DEEPER 01
Robe River: A Stake Since 1965
Mitsui has owned a third of Robe River for sixty years and pays its share to keep it producing.
DIG DEEPER 02
Mount Newman and the BHP Joint Venture
Mitsui's 7% of BHP's Pilbara venture produces as much ore as its third of Robe River.
DIG DEEPER 03
Vale: 6.71% and a Dividend
Mitsui's Brazilian iron ore exposure is a dividend it does not control.
DIG DEEPER 04
Coal and Copper: The Weaker Metals
Outside iron ore, Mitsui's mining stakes range from profitable to persistently loss-making.
⚠ Threats to the moat
⚠ THREAT 01
A Third of Profit Moves With One Price
Mitsui's largest business has a published sensitivity and an unpublished price assumption.
⚠ THREAT 02
China's Steel Mills Decide
Mitsui is adding iron ore capacity for a customer whose demand it names as its main risk.
References
  1. ReportedIts iron ore business earned approximately ¥260 billion in the year to March 2026, about 31% of the company's net profit of ¥834.0 billion, from minority stakes in mines run by Rio Tinto, BHP and Vale.
    Mitsui & Co. Integrated Report 2026, Our Edge - profit of the iron ore, LNG, mobility and protein and healthcare businesses, the iron ore and LNG growth paths, IHH's hospitals and market positions. — 2026 · publ. 2026 · source ↗
  2. Moat Explorer calcIts iron ore business earned approximately ¥260 billion in the year to March 2026, about 31% of the company's net profit of ¥834.0 billion, from minority stakes in mines run by Rio Tinto, BHP and Vale.
    Moat Explorer calculation from Mitsui & Co.'s reported figures. Resource share of profit: (253.6 + 164.2) / 834.0 = 50.1% (2026), 51.0% (2025), 58.0% (2024). Iron ore business share: 262.2 / 834.0 = 31.4%. Trailing twelve months to June 2026: net income 833,971 - 191,647 + 294,052 = 936,376; revenue 13,995.2 - 3,299.9 + 4,347.6 = 15,042.9; EPS 291.12 - 66.68 + 103.73 = 328.17. P/S at March year-ends: 5,340.8 / 11,757.6 = 0.45 (2022), 0.44 (2023), 0.80 (2024), 0.55 (2025), 16,969.0 / 13,995.2 = 1.21 (2026). Share price change since March: 5,033 / 5,959 - 1 = -15.5%. Shares issued, split-adjusted: 3,284.7 million (March 2022) to 2,864.7 million (March 2026) = -12.8%. Equity-method profit and dividend income: 447.4 + 178.7 = 626.1, 57.6% of profit before tax of 1,087.1. Segment profit over segment assets, year to March 2026: Mineral & Metal Resources 253.6 / 4,313.2 = 5.9%; Machinery & Infrastructure 225.9 / 4,427.3 = 5.1%; Energy 164.2 / 4,181.4 = 3.9%; Chemicals 67.5 / 2,241.8 = 3.0%; Lifestyle 52.0 / 3,091.1 = 1.7%; Innovation & Corporate Development 59.0 / 2,655.3 = 2.2%; Iron & Steel Products 18.9 / 862.4 = 2.2%. Innovation & Corporate Development including other and adjustments: 59.0 + 20.7 - 27.7 = 51.9 (2026), 87.3 - 42.8 + 21.5 = 65.9 (2025), 53.8 + 5.6 - 5.9 = 53.6 (2024). A $10 move in iron ore: 10 x ¥3.0 billion = ¥30 billion, 3.3% of the ¥920 billion forecast. Berkshire's market value over cost: 8,785 / 3,490 = 2.52 times; dividend on cost 201 / 3,490 = 5.8%. Progress against guidance: 294.1 / 920.0 = 32.0%. Profit growth since the year to March 2016's loss: from -83.4 to 834.0. Resource profits: 335.1 + 281.7 = 616.8 (2024) and 253.6 + 164.2 = 417.8 (2026). Three largest segments: (253.6 + 225.9 + 164.2) / 841.1 = 76.5%. Energy Trading Singapore: 1,986,458 / 13,995,222 = 14.2%. First-quarter one-time gains: (44.2 + 10.2) / 294.1 = 18.5%. Innovation & Corporate Development first quarter against plan: 65.2 / 70.0 = 93%. Arctic LNG 2 provision change: 66,109 - 57,759 = 8,350. A $1 move in US gas: 10 x ¥1.2 billion = ¥12 billion. Vale dividend: 35.0 / 59.6 - 1 = -41%; 43.5 / 35.0 - 1 = +24%. Truck leasing holding: 19.8 / 28.4 - 1 = -30%; 18.8 / 19.8 - 1 = -5%. Profit to the 2029 target: 1,100 / 834.0 = 1.32; to the 2031 vision: 1,400 / 834.0 = 1.68. Berkshire value over cost 2.52 and dividend yield on cost 5.8%. Ministers North at full production: 7% x 20 Mt = 1.4 Mt. Mainstream charges: 15.1 + 15.9 + 28.05 = 59.05. Vale dividend fall against segment profit: (59.6 - 35.0) / 285.4 = 8.6%. Mitsui against smaller houses: profit 936.4 / 619.1 = 1.51 and 936.4 / 575.9 = 1.63; value 14.63 / 8.51 = 1.72 and 14.63 / 8.09 = 1.81. Trailing P/E: 14.63 trillion / 936.4 billion = 15.6; P/S 14.63 / 15.043 = 0.97. Dividend growth: 115 / 27.5 = 4.2 times. — FY to March 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Mitsui & Co.'s results, integrated report, securities report and market data; operands shown in the source line.
  3. ReportedIts equity share of production was 63.8 million tonnes, including 22.5 million tonnes from Vale.
    Mitsui & Co., Annual Securities Report for the year to March 2026 (English) - company history, employees, share price history, total shareholder return, equity production, the revenue of the Singapore trading subsidiary, competition and the Arctic LNG 2 guarantees. — FY to March 2026 · publ. 12 August 2026 · source ↗
  4. ReportedMitsui joined Robe River in Australia in February 1965 and signed a long-term purchase agreement for Mount Newman ore in October 1966.
    Mitsui & Co., Annual Securities Report for the year to March 2026 (English) - company history, employees, share price history, total shareholder return, equity production, the revenue of the Singapore trading subsidiary, competition and the Arctic LNG 2 guarantees. — FY to March 2026 · publ. 12 August 2026 · source ↗
  5. ReportedIt participated in MBR in Brazil in 1971, a business that became part of today's Vale.
    Mitsui & Co., Annual Securities Report for the year to March 2026 (English) - company history, employees, share price history, total shareholder return, equity production, the revenue of the Singapore trading subsidiary, competition and the Arctic LNG 2 guarantees. — FY to March 2026 · publ. 12 August 2026 · source ↗
  6. ReportedAn investor arriving now would have to pay for the same position at today's prices, which is exactly what Mitsui did at Rhodes Ridge in 2025, paying $5,342 million for 40% of an undeveloped deposit.
    Mitsui & Co. release, 19 February 2025 - acquisition of a 40% interest in the Rhodes Ridge iron ore project for $5,342 million. — February 2025 · publ. 19 February 2025 · source ↗
  7. ReportedThe Australian iron ore business contributed ¥218.7 billion, down from ¥268.1 billion two years earlier; the Vale dividend contributed ¥43.5 billion.
    Mitsui & Co. Integrated Report 2026, data section - the major affiliates by segment with ownership and share of profit. — FY to March 2022-2026 · publ. 2026 · source ↗
  8. ReportedThe segment that holds them, Mineral & Metal Resources, earned ¥253.6 billion on ¥4,313.2 billion of assets, a return of 5.9%, the highest of Mitsui's seven segments.
    Mitsui & Co. Integrated Report 2026, data section - results by operating segment: gross profit, equity-method profit, dividend income, core operating cash flow and total assets. — FY to March 2022-2026 · publ. 2026 · source ↗
  9. Moat Explorer calcThe segment that holds them, Mineral & Metal Resources, earned ¥253.6 billion on ¥4,313.2 billion of assets, a return of 5.9%, the highest of Mitsui's seven segments.
    Moat Explorer calculation from Mitsui & Co.'s reported figures. Resource share of profit: (253.6 + 164.2) / 834.0 = 50.1% (2026), 51.0% (2025), 58.0% (2024). Iron ore business share: 262.2 / 834.0 = 31.4%. Trailing twelve months to June 2026: net income 833,971 - 191,647 + 294,052 = 936,376; revenue 13,995.2 - 3,299.9 + 4,347.6 = 15,042.9; EPS 291.12 - 66.68 + 103.73 = 328.17. P/S at March year-ends: 5,340.8 / 11,757.6 = 0.45 (2022), 0.44 (2023), 0.80 (2024), 0.55 (2025), 16,969.0 / 13,995.2 = 1.21 (2026). Share price change since March: 5,033 / 5,959 - 1 = -15.5%. Shares issued, split-adjusted: 3,284.7 million (March 2022) to 2,864.7 million (March 2026) = -12.8%. Equity-method profit and dividend income: 447.4 + 178.7 = 626.1, 57.6% of profit before tax of 1,087.1. Segment profit over segment assets, year to March 2026: Mineral & Metal Resources 253.6 / 4,313.2 = 5.9%; Machinery & Infrastructure 225.9 / 4,427.3 = 5.1%; Energy 164.2 / 4,181.4 = 3.9%; Chemicals 67.5 / 2,241.8 = 3.0%; Lifestyle 52.0 / 3,091.1 = 1.7%; Innovation & Corporate Development 59.0 / 2,655.3 = 2.2%; Iron & Steel Products 18.9 / 862.4 = 2.2%. Innovation & Corporate Development including other and adjustments: 59.0 + 20.7 - 27.7 = 51.9 (2026), 87.3 - 42.8 + 21.5 = 65.9 (2025), 53.8 + 5.6 - 5.9 = 53.6 (2024). A $10 move in iron ore: 10 x ¥3.0 billion = ¥30 billion, 3.3% of the ¥920 billion forecast. Berkshire's market value over cost: 8,785 / 3,490 = 2.52 times; dividend on cost 201 / 3,490 = 5.8%. Progress against guidance: 294.1 / 920.0 = 32.0%. Profit growth since the year to March 2016's loss: from -83.4 to 834.0. Resource profits: 335.1 + 281.7 = 616.8 (2024) and 253.6 + 164.2 = 417.8 (2026). Three largest segments: (253.6 + 225.9 + 164.2) / 841.1 = 76.5%. Energy Trading Singapore: 1,986,458 / 13,995,222 = 14.2%. First-quarter one-time gains: (44.2 + 10.2) / 294.1 = 18.5%. Innovation & Corporate Development first quarter against plan: 65.2 / 70.0 = 93%. Arctic LNG 2 provision change: 66,109 - 57,759 = 8,350. A $1 move in US gas: 10 x ¥1.2 billion = ¥12 billion. Vale dividend: 35.0 / 59.6 - 1 = -41%; 43.5 / 35.0 - 1 = +24%. Truck leasing holding: 19.8 / 28.4 - 1 = -30%; 18.8 / 19.8 - 1 = -5%. Profit to the 2029 target: 1,100 / 834.0 = 1.32; to the 2031 vision: 1,400 / 834.0 = 1.68. Berkshire value over cost 2.52 and dividend yield on cost 5.8%. Ministers North at full production: 7% x 20 Mt = 1.4 Mt. Mainstream charges: 15.1 + 15.9 + 28.05 = 59.05. Vale dividend fall against segment profit: (59.6 - 35.0) / 285.4 = 8.6%. Mitsui against smaller houses: profit 936.4 / 619.1 = 1.51 and 936.4 / 575.9 = 1.63; value 14.63 / 8.51 = 1.72 and 14.63 / 8.09 = 1.81. Trailing P/E: 14.63 trillion / 936.4 billion = 15.6; P/S 14.63 / 15.043 = 0.97. Dividend growth: 115 / 27.5 = 4.2 times. — FY to March 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Mitsui & Co.'s results, integrated report, securities report and market data; operands shown in the source line.
  10. ReportedIt also produced ¥330.4 billion of core operating cash flow, a third of the company's total.
    Mitsui & Co. Integrated Report 2026, data section - results by operating segment: gross profit, equity-method profit, dividend income, core operating cash flow and total assets. — FY to March 2022-2026 · publ. 2026 · source ↗
  11. ReportedThe company's sensitivity is ¥3.0 billion of net profit for every dollar a tonne, excluding the Vale dividend, and it does not disclose the iron ore price it assumes for the current year.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the JA Mitsui Leasing and Mainstream losses, the Russian LNG exposure, the Strait of Hormuz and the sensitivities. — FY to March 2026 · publ. 1 May 2026 · source ↗
  12. ReportedThe company's sensitivity is ¥3.0 billion of net profit for every dollar a tonne, excluding the Vale dividend, and it does not disclose the iron ore price it assumes for the current year.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the JA Mitsui Leasing and Mainstream losses, the Russian LNG exposure, the Strait of Hormuz and the sensitivities. — FY to March 2026 · publ. 1 May 2026 · source ↗
  13. ReportedMitsui gives ¥3.0 billion per dollar a tonne for iron ore, ¥0.3 billion per dollar for metallurgical coal and ¥0.5 billion per $100 a tonne for copper, the last assuming $12,000 against an actual $9,939 in the latest year.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the JA Mitsui Leasing and Mainstream losses, the Russian LNG exposure, the Strait of Hormuz and the sensitivities. — FY to March 2026 · publ. 1 May 2026 · source ↗
  14. ReportedMitsui gives ¥3.0 billion per dollar a tonne for iron ore, ¥0.3 billion per dollar for metallurgical coal and ¥0.5 billion per $100 a tonne for copper, the last assuming $12,000 against an actual $9,939 in the latest year.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the JA Mitsui Leasing and Mainstream losses, the Russian LNG exposure, the Strait of Hormuz and the sensitivities. — FY to March 2026 · publ. 1 May 2026 · source ↗
  15. ReportedThe reference iron ore price was $100 a tonne for 61% iron content and $103 for 62%.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the JA Mitsui Leasing and Mainstream losses, the Russian LNG exposure, the Strait of Hormuz and the sensitivities. — FY to March 2026 · publ. 1 May 2026 · source ↗
  16. ReportedOf 63.8 million tonnes of equity production, 22.5 million came from Vale, which is why the iron ore business earns two different kinds of income: a share of profit from the Australian ventures and a dividend from Brazil.
    Mitsui & Co., Annual Securities Report for the year to March 2026 (English) - company history, employees, share price history, total shareholder return, equity production, the revenue of the Singapore trading subsidiary, competition and the Arctic LNG 2 guarantees. — FY to March 2026 · publ. 12 August 2026 · source ↗
  17. ReportedIt fell from ¥268.1 billion to ¥218.7 billion in two years; a fall below ¥200 billion with volumes unchanged would say the price, not the position, is doing the work.
    Mitsui & Co. Integrated Report 2026, data section - results by operating segment: gross profit, equity-method profit, dividend income, core operating cash flow and total assets. — FY to March 2022-2026 · publ. 2026 · source ↗
Sources
Generated September 24, 2026