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. Under the Green Hybrid Smelting process, which utilizes surplus heat from copper concentrate processing, we will work to build a sustainable recycling-oriented society with the goal of increasing the ratio of recycled raw materials (either in raw material input or in product content) to at least 50% by 2040. In our detoxification processing treatment of industrial waste materials, we also use incineration and melting technologies aiming for "zero emissions," which means no generation of secondary waste destined for disposal to landfills.
JX Nippon Mining & Metals Corporation
Senior Executive Officer, General Manager, Metals & Recycling Division, Senior Executive Engineer, Technology Group
Yasuda Yutaka
During fiscal 2021, we worked to increase the processing of copper concentrates from the Caserones Copper Mine and other mines in which we have equity, as well as to increase the processing of recycled raw materials that contribute to resource recycling, thereby strengthening the competitiveness of each of our manufacturing locations.
In the Recycling Business, in March 2021, we increased the processing capacity of the Changpin Recycle Center in Taiwan by 2.4 times and established the JX Metal Smelting Co., Ltd. Oita Recycling Logistics Center near the Saganoseki Smelter & Refinery. In addition, we expanded our pretreatment facilities, which began operations in April 2022. Efforts were also made to increase the recovery of minor metals. On the other hand, imports of recycled raw materials decreased due to reduced electrical and electronic waste discharged as a result of COVID-19, logistics disruptions, and rising freight fares, but efforts were made toward collection within Japan and neighboring regions to minimize impact.
In the Metals Business, the supply-demand balance for sulfuric acid tightened and export prices remained particularly high. Copper prices were high throughout the period. Purchase margins for raw material copper concentrates were low at the beginning of the period, but gradually recovered against the backdrop of steady production ramp-ups at new mines and other factors.
JX Nippon Mining & Metals Corporation
Senior Executive Officer, General Manager, Metals & Recycling Division, Senior Executive Engineer, Technology Group
Yasuda Yutaka
We will continue safe and stable operations at all sites, including the Saganoseki Smelter & Refinery. On the other hand, with no improvement expected in margins for purchasing raw material copper concentrates, we will maximize earnings by pursuing total maximization of the smelting and recycling businesses and improving productivity. Specifically, we will increase 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 these recycled raw materials, including through acquisition of Canadian recycler eCycle Solutions Inc., pursuing an increase in processing of high-margin materials and a feed mix optimal for earnings.
In addition, we will promote initiatives to achieve net zero CO₂ emissions, improve operations and promote cost reductions by streamlining logistics between locations with a bird's eye view of the supply chain, and otherwise work to further strengthen our business and realize the SDGs and ESG.
In Japan, we have established 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. Operations there launched in October 2021. In addition, we expanded our kiln furnaces, which are pretreatment facilities for recycled materials, at the Saganoseki Smelter & Refinery. In January 2022, we began test runs of these facilities, successfully launching full-scale operations in the following April. Meanwhile, overseas, we will acquire eCycle in fiscal 2022 as mentioned above and are promoting the procurement of more recycled raw materials by utilizing our overseas locations. Through these efforts to further increase the volume of recycled raw materials handled, we will contribute to building a sustainable recycling-oriented society and strengthen the competitiveness of our businesses.
JX Metal Smelting Co., Ltd. Oita Recycling Logistics Center
