⚠ A Copper Stake Impaired TwiceModerate threat

Mitsui & Co. (8031) — threat to the moat

Mitsui's Chilean copper stake has been written down twice and still loses money.

Anglo American Sur has cost Mitsui twice. In the year to March 2016 the company impaired the investment by ¥92.5 billion1, part of the losses that produced Mitsui's only net loss in the period, ¥83.4 billion2. In the year to March 2024 it recorded an equity-method loss of ¥12.2 billion because of a change in the properties of the ore3.

Anglo American Sur contribution (¥ bn, years to March)-35.92024-11.42025-10.62026Losses shown as magnitudes; Mitsui Integrated Report 2026
Three losses in three years.

The contribution has been negative in each of the last three years4. Copper prices have been high, which suggests the problem is the mine rather than the market.

Mitsui's copper strategy relies on stakes like this one to give it exposure to the metal of electrification. A persistent loss in one of them weakens that case.

The 2016 losses were broad: besides Anglo American Sur, Mitsui impaired Caserones by ¥46.2 billion and recorded a ¥52.6 billion loss at Valepar5. The total produced the company's only net loss in the past decade, ¥83.4 billion6. Almost all of those losses were in resource stakes, the part of the portfolio exposed to commodity prices.

The measure is the next impairment test. A further write-down would show the carrying value still depended on assumptions the mine has not met.

References
  1. ReportedIn the year to March 2016 the company impaired the investment by ¥92.5 billion, part of the losses that produced Mitsui's only net loss in the period, ¥83.4 billion.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2016 - the net loss and the impairments in Chilean copper, Valepar, Browse LNG and power. — FY to March 2016 · publ. May 2016 · source ↗
  2. ReportedIn the year to March 2016 the company impaired the investment by ¥92.5 billion, part of the losses that produced Mitsui's only net loss in the period, ¥83.4 billion.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2016 - the net loss and the impairments in Chilean copper, Valepar, Browse LNG and power. — FY to March 2016 · publ. May 2016 · source ↗
  3. ReportedIn the year to March 2024 it recorded an equity-method loss of ¥12.2 billion because of a change in the properties of the ore.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2024 - including the impairments in Italian and Texan oil and gas and the Anglo American Sur equity-method loss. — FY to March 2024 · publ. May 2024 · source ↗
  4. ReportedThe contribution has been negative in each of the last three years.
    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 ↗
  5. ReportedThe 2016 losses were broad: besides Anglo American Sur, Mitsui impaired Caserones by ¥46.2 billion and recorded a ¥52.6 billion loss at Valepar.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2016 - the net loss and the impairments in Chilean copper, Valepar, Browse LNG and power. — FY to March 2016 · publ. May 2016 · source ↗
  6. ReportedThe total produced the company's only net loss in the past decade, ¥83.4 billion.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2016 - the net loss and the impairments in Chilean copper, Valepar, Browse LNG and power. — FY to March 2016 · publ. May 2016 · source ↗
Sources
Generated September 24, 2026