Through the smelting process, we efficiently produce high-quality metal ingots such as copper and precious metals from copper concentrate and recycled materials, and ensure a stable supply of these to Japan and regions throughout Asia. Furthermore, our recent increase in the processed amounts of recycled materials is contributing to the creation of a sustainable, Recycling-oriented society. In our detoxification processing treatment of industrial waste materials, we also use incineration and melting technologies cultivated in smelting characterized by "zero emissions": No generation of secondary waste destined for disposal to landfill. This is contributing to the prevention of environmental pollution within Japan.
Yasuda Yutaka
Director & Senior Executive Officer, General Manager, Metals & Recycling Division, Deputy General Manager, Technology Group
JX Nippon Mining & Metals Corporation
In April 2020, we launched the Metals & Recycling Division by restructuring business operations in order to integrate management of the Metals Business and the Recycling Business, both businesses are relied on the Saganoseki Smelter & Refinery of JX Metals Smelting Co., Ltd as a major production base. Through this, we are working to increase margins, reduce costs, and stabilize operations.
In the Metals Business, the international sales price of sulfuric acid plunged particularly in the first half of this fiscal year, mainly due to the impact of the spread of COVID-19. In addition, tight supply and demand conditions for copper concentrates led to gradually worsening purchasing conditions. Given this, we put in place measures to improve profitability including the increased collection of high-margin raw materials, and reduced costs. In the second half of this fiscal year, monetary easing policies in various countries coupled with the recovery in the Chinese market led to increased metal prices, which bolstered an improvement in earnings.
In the Recycling Business, while the collection of recycled raw materials saw a temporary slowdown due to sluggish economic activities attributable to COVID-19, rising metal prices meant the conditions for the scrap market remained strong in the second half of the fiscal year, seeing an increase in both collection volumes and margins.
Yasuda Yutaka
Director & Senior Executive Officer, General Manager, Metals & Recycling Division, Deputy General Manager, Technology Group
JX Nippon Mining & Metals Corporation
While continuing with safe and stable operations at Operating sites such as the Saganoseki Smelter & Refinery, we forecast that purchasing conditions for copper concentrate will continue to be sluggish. Given these conditions, we will undertake a variety of measures in order to maximize profits. Specifically, increased investment in facilities at the Saganoseki Smelter & Refinery which is working towards increased processing of recycled raw materials coupled with efforts to increase procurement of those means pursuing an increase in processing of high-margin materials and a best earnings feed mix. We will also strengthen our business and work to make SDGs a reality through initiatives such as more efficient logistics improving operational efficiency and reducing costs, and commencing the purchase of CO2-free power aimed at achieving net zero CO2 emissions.
In order to increase volumes of recycled raw materials that we handle, we have increased the collection and treatment capacity of the Changpin Recycle Center at Nikko Metals Taiwan, one of our main overseas operating sites, by 2.4 times. In Japan, construction work began in August 2020 to establish the JX Metal Smelting Co., Ltd. Oita Recycling Logistics Center (Oita City, Oita Port, Ozai Nishi-ku), a new collection base for recycled raw materials, and operation is scheduled to start in October 2021. Through these initiatives, we will pursue an optimal mix of copper concentrates and recycled raw materials, thereby further increasing our competitiveness.
Oita Recycling Logistics Center
