MOL Signs a Contract for Long-term Transport
of Iron Ore with Jiangsu Shagang Group in China

October 21, 2009

TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL, President: Akimitsu Ashida) today announced that MOL as the first oversea ship-owners signed a long-term iron ore transport contract with Jiangsu Shagang Group Co., Ltd. of China on October 19. MOL will transport iron ore from Australia and Brazil to Jiangsu Shagang.

The 207,000-ton iron ore carrier to be constructed at the Universal Shipbuilding Corporation for this contract is scheduled for completion in late 2011.

Outline of contract

Consecutive voyage contract to transport iron ore between West Australia/Brazil and Ningbo for 10 years after late 2011

Outline of Jiangsu Shagang Group Co., Ltd.

Founded in 1975, Jiangsu Shagang is one of China's leading steel makers and among the largest of private steel makers. In 2008, its annual crude steel production was 23.3 million tons, and its annual iron ore imports (from Brazil, Australia, etc.) were 16.34 million tons.
The Jiangsu Shagang Group has aggressively expanded business, and its production ranks among the top five Chinese steel companies.

Specifications of the newbuilding vessel

Deadweight:

206,500 MT

Length:

299.7m

Breadth:

50m

Draft:

18.20m

Background and future approach

Jiangsu Shagang Group accepted MOL's proposal of an efficient large-scale ship that would conform to Jiangsu's Shagang berth at Zhangjiagang Port. This proposal led to the conclusion of the long-term contract.

MOL makes a point of meeting a variety of needs in iron ore transport, which is expected to be an active seaborne trade into the future, and is aggressively involved in natural resources transport for steel companies in Japan and overseas.

Outline of signing ceremony

Date:

October 19, 2009

Place:

Jiangsu Shagang Group Headquarters (Zhangjiagang Port, Jiangsu Province)

Main attendants:

Jiangsu Shagang Group - Vice President Shen Wenming
MOL Managing Executive Officer Kennichi Nagata