We are able to efficiently use our smelting processes to take copper concentrate and recycled raw materials and supply high-quality metal products such as copper and precious and minor metals. These products are then offered through a stable supply in Japan and parts of Asia. We will work to build a sustainable, recycling-oriented society under the concept of the Green Hybrid Smelting process, which maximizes the use of reaction heat from copper concentrate. With this concept, we aim to increase the ratio of recycled raw materials (either in raw material input or in product content) to at least 50% by 2040.
In fiscal 2022, we worked to optimize the composition of raw materials, focusing on increased processing of recycled raw materials. We also pursued our total best from a bird's-eye view of the supply chain, and strengthened our competitiveness by streamlining logistics between locations and increasing the operational efficiency at each manufacturing site.
In the Recycling Business, the volume of recycled materials collected overseas decreased due to higher transportation and processing costs resulting from soaring energy prices. However, this decrease was compensated for by strengthening the collection of materials from Japan. In addition, we acquired all shares of eCycle Solutions Inc., a Canadian E-waste (waste home appliances and electronic devices) collection and processing company, as part of our efforts to strengthen our Recycling Business initiatives.
Copper prices declined in the Metals Business in the first half of the year due to concerns of the global recession. However, prices rose in the second half of the year due to expectations of a recovery in demand in China. Purchase margins copper concentrates increased from the previous year against the backdrop of factors such as production ramp-ups at new mines. In the sulfuric acid market, market prices remained high in the first half of the year due to the ongoing tight environment from the previous year. From the second half of the year, market prices fell sharply and remained at low levels due to a sharp drop in sulfur prices and a deteriorating supply-demand environment.
The current environment is expected to face further challenges in the procurement of copper concentrates and the collection of recycled raw materials. In response, we will strive to maximize earnings and improve capital efficiency by addressing materialities.
We expect demand for copper will continue to grow, with supply falling short of demand. Therefore, we must expand the use of recycled raw materials, in addition to copper concentrates, to meet this growing demand. We formulated our Sustainable Copper Vision in August, 2022, to fulfill our missions to (1) Establish a stable supply system to support growing demand and (2) Achieve ESG-oriented production and supply (decarbonized, circular economy, etc.). In fiscal 2023, we will pursue the following four measures to evolve and spread sustainable copper:
(1) Reduce carbon footprint
(2) Increase recycling ratio
(3) Promote responsible procurement and ESG initiatives
(4) Form Green Enabling Partnerships
On December 15, 2022, JX Metals Smelting Co., Ltd. obtained The Copper Mark certification at the Saganoseki Smelter & Refinery and Hitachi Works. The Copper Mark, founded in 2019, is a highly reliable guarantee framework that encourages responsible production practices and demonstrates a commitment to green transition in the copper industry.
JX Metals Smelting Co., Ltd. became the first copper smelter in Japan to obtain certification after undergoing an audit by an independent third-party organization. The Copper Mark recognizes our compliance with a wide range of criteria, such as environmental, human rights, community, and governance standards across 32 categories. This certification will strengthen the competitiveness of our sustainable businesses in the face of growing international demand for ESG initiatives.
The Copper Mark logo
