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CSR Purchasing

At a time when concerns about value chain risks are growing, JX Advanced Metals has formulated a Basic Policy on Procurement and Green Procurement Guideline to purchase responsibly in the name of CSR Purchasing. When procuring materials, we confirm such matters as respect for human rights and ensuring the rights of workers, as well as absence of discrimination in hiring and work, elimination of forced labor and child labor, and compliance with the prohibition against purchasing conflict minerals.

CSR Purchasing Questionnaire Surveys

Starting in fiscal 2019, we began conducting CSR Purchasing Questionnaire surveys to ensure that we continue to fulfill our responsibilities to society across the entire supply chain in areas including respect for human rights, occupational health and safety, compliance, and environmental protection.
Based on the survey results, we will provide feedback to business partners as we strive to promote CSR activities throughout the supply chain.

Confronting the Problem of Conflict Minerals

"Conflict minerals" is the general term for minerals that are mined (illegally, in most cases) in conflict-affected regions, providing a source of funds for local armed groups. The use of these minerals may lead to the prolonging of conflicts and the expansion of human rights abuses and dehumanizing acts. Global moves to restrict trade of conflict minerals began in the late 1990s, and today various organizations have devised rules and programs.
In 2011, the Organisation for Economic Co-operation and Development (OECD) established the Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, advising corporations and others to manage their own operations so as to avoid involvement in the trade of conflict minerals. In the United States, from 2013 the Dodd-Frank Wall Street Reform and Consumer Protection Act obligated companies listed on the U.S. stock exchanges to submit reports on their usage of specific conflict minerals (tin, tantalum, tungsten, and gold) to the Securities and Exchange Commission. The aim of such measures is to stop companies from using conflict minerals through information disclosure and social pressure.
In line with these global trends, industry organizations relevant to the Group (including the LME*1, LBMA*2, LPPM*3, and RBA*4) have established monitoring programs for eliminating conflict minerals. These programs request that companies cooperate with surveys and undergo external audits by an independent organization.

  1. 1LME: London Metal Exchange
    The world center for the trading of industrial metals, where the majority of all non-ferrous metal (including copper) futures business is transacted.
  2. 2LBMA: London Bullion Market Association
    An industry association composed of financial institutions and others that deal in gold and silver ingot. Inclusion on this association's Good Delivery List is viewed as a guarantee of high quality and reliability.
  3. 3LPPM: London Platinum and Palladium Market
    An industry association composed of financial institutions and others that deal in platinum and palladium ingot. Inclusion on this association's Good Delivery List is viewed as a guarantee of high quality and reliability.
  4. 4RBA: Responsible Business Alliance
    An alliance of companies formed with the aim of ensuring responsible conduct in the electronics industry supply chain.

Initiatives in the Copper, Gold, Silver, Platinum, and Palladium Supply Chains

JX Metals Smelting Co., Ltd. as a producer of gold, silver, platinum and palladium ingots has established and operates a management system for supply chain due diligence that calls for actions including the following to be taken.

  1. 1.Performing supply chain due diligence before purchasing mineral raw materials
    (confirming the place of origin of the materials, assessing risks, confirming materials after delivery, confirming distribution route, preserving relevant documents, etc.)
  2. 2.Notifying suppliers of the policy on exclusion of conflict minerals
  3. 3.Conducting in-house education on supply chain due diligence and its background
  4. 4.Conducting internal audits and undergoing external audits

The implementation status of supply chain due diligence is audited by an independent organization specified by the LBMA and LPPM, and the results are reported to the LBMA and LPPM. As a result of following these procedures, the gold ingots produced at Saganoseki Smelter & Refinery, as well as the silver, platinum and palladium ingots produced at the Hitachi Works, are included on LBMA and LPPM Good Delivery Lists. At the same time, the Saganoseki Smelter & Refinery and Hitachi Works have been included on the RMAP Conformant Smelters list compiled by the RBA and GeSI*5-recognition that they are taking proper measures to exclude conflict minerals.
In addition, for copper metal, JX Metals Smelting Co., Ltd. has established a management system for supply chain due diligence that calls for confirmation of the source of raw materials, risk assessment, confirmation of distribution routes, etc., and began operation in fiscal 2022 . The implementation status is audited by an independent organization and confirmed through the Copper Mark certification acquisition process.

  1. 5GeSI: Global e-Purchasing Information Initiative (a trade association of the information and communications technology industry in Europe)
    The RBA and GeSI together created the Responsible Minerals Assurance Process (RMAP) certification program, based on their relationship with the electronic and communications equipment industries, where the risk of conflict mineral use is especially high.

Initiatives for the Tantalum Supply Chain

TANIOBIS GmbH is a Group company that produces tantalum powder. This company conducts supply chain due diligence in accordance with international standards as a refiner of tantalum, a designated conflict mineral. TANIOBIS GmbH strives to prevent complicity in human rights violations in conflict zones and high-risk areas.
The supply chain management of TANIOBIS GmbH received certification from RMI*1, an international framework for responsible mineral procurement, and was evaluated as an RMAP*2 Conformant Smelter.

  1. 1Responsible Minerals Initiative (RMI): An organization within the Responsible Business Alliance (RBA) that facilitates due diligence in the conflict minerals supply chain and provides programs to certify appropriate measures.
  2. 2Responsible Minerals Assurance Process (RMAP): A certification program for responsible mineral procurement established by RMI.