---

Mexican Government, Mitsubishi Agree Not to Pursue San Ignacio Saltworks

3 March 2000

Mexican Government, Mitsubishi Corporation Agree Not to Pursue San Ignacio Saltworks; Announce Completion of Environmental Impact Assessment

    MEXICO CITY, March 3 -- The Mexican Government, through The
Ministry of Commerce and Industrial Development (SECOFI) and Mitsubishi
Corporation, joint owners of Exportadora del Sal (ESSA), announced yesterday
the completion of a two year research effort and the Environmental Impact
Assessment (EIA) for the proposed salt works project adjacent to San Ignacio
Lagoon.
    The EIA team consisted of over 40 scientists, including scientists from
the Autonomous University of Baja California Sur and the Scripps Institution
of Oceanography in La Jolla, California.  The EIA concludes that the proposed
salt works would not adversely impact the San Ignacio Lagoon, the gray whales
found in the lagoon or other plant or animal species in the area of the
proposed salt works.
    Although SECOFI and Mitsubishi Corporation recognized that the positive
EIA indicated that the environmental issues had been resolved, they also
recognized that as important as the environmental factors are, other factors
must be considered such as the impact of a project of this magnitude on the
landscape near the San Ignacio Lagoon. They also acknowledged that responsible
environmental organizations, UNESCO and the public raised concerns about the
alteration of the landscape.
    Mr. Mikio Sasaki, President of Mitsubishi Corporation, having been
consulted for his opinion, completely agreed with President Zedillo's decision
that the preservation of the area in its current natural condition was more
important than proceeding with the salt works project even though it was an
environmentally sustainable development.  Mitsubishi Corporation had long made
clear that it left this issue to be decided by the Mexican Government as it is
in the best position to judge how to preserve its country's heritage.  SECOFI
strongly commended Mitsubishi Corporation's responsible involvement in the
decision making process.
    James E. Brumm, a Director of Mitsubishi Corporation, said that Mitsubishi
Corporation had acted responsibly in proceeding with the EIA study to
completion and that it had fulfilled its promise not to go ahead with any
project until the EIA had been reviewed and all other factors had been
considered.
    Mitsubishi Corporation praised ESSA's strong environmental record at its
Guerrero Negro operation, an opinion shared by UNESCO. Mitsubishi Corporation
announced that it would continue to pursue cooperative projects with the NGO
community dedicated to the study and protection of the region's environment.