SMM and Sumitomo Establish Scholarship Fund at Universidad de Atacama in Chile

May 18, 2006
Sumitomo Metal Mining Co., Ltd.

Sumitomo Metal Mining Co., Ltd. (SMM: Minato-ku, Tokyo/ President: Koichi Fukushima) and Sumitomo Corporation (Chuo-ku, Tokyo/ President & CEO: Motoyuki Oka) have been jointly engaged in copper production operations in Chile since 1992. That is when the two companies acquired rights and interests in the Candelaria Mine -- also known by its corporate name, Compania Contractual Minera Candelaria (CCMC) -- owned by Phelps Dodge Corporation, one of America's leading copper producers. To commemorate the 10th anniversary of the inauguration of operations at Candelaria, SMM and Sumitomo have now established a scholarship fund at Universidad de Atacama, which, like the mine, is located in the northern city of Copiapo.

The fund, known as the Sumitomo Scholarship, was set up through the offices of SMMA Candelaria Inc., a U.S. subsidiary with an equity stake in CCMC. Created in the amount of US$100,000, the endowment is targeted at the university's students of mining and metallurgy, who are expected to work at the Candelaria Mine in the future. The fund itself is to be managed by the university. SMM and Sumitomo established the scholarship with two broad aims: (1) to contribute to the development of Chile's resources and (2) to secure the human resources to be required at the Candelaria Mine in future years.

Earlier, in 1996 SMM and Sumitomo created a scholarship fund, also in the amount of US$100,000, at Universidad de Santiago. That fund was established to commemorate the 100th anniversary of friendly ties between Chile and Japan.

Universidad de Atacama, founded in 1981, is a national university offering courses in mining and metallurgy. A technical vocational school is also located here. Current enrollment is 704. Chile hopes that university graduates will seek employment at the local Candelaria Mine.