JX Nippon Mining & Metals Corporation

Materiality 5

Coexistence and Co-Prosperity With Local Communities

Since the inception of our business at the Hitachi Mine, the JX Nippon Mining & Metals Group has emphasized the spirit of maintaining good relations with local communities in conducting its business. Keeping alive that spirit today, we have written coexistence and co-prosperity with society into our Code of Conduct. We additionally set an action plan for each fiscal year and work day to day to fulfill it.

Major Initiatives
Social Contribution Activities

Social Contribution Activities

Stakeholder Engagement

Stakeholder Engagement

KPIs and Progress

Assessment: Achieved/Steady Progress Not Achieved

KPI Fiscal 2021 Results/Progress Assessment
Continuing dialogue with local communities Despite the impact of COVID-19, we endeavored to understand the needs of local communities, building trust with stakeholders related to corporate activities through ongoing dialogue.

Social Contribution Activities

With the goal of further strengthening relationships with local communities through social contribution activities, the JX Nippon Mining & Metals Group conducted community-based initiatives at each of our operating sites in Japan and overseas. While the impact of COVID-19 resulted in restrictions or limitations on our activities, we endeavored to create opportunities for communication with local communities, valuing the spirit of coexistence and co-prosperity that we have pursued since our founding.

Results of Main Social Contribution Activities in Fiscal 2021
Activity Location Date Description
Environmental Conservation Activities Cleanup around plant areas Various group locations Year-round Cleanup activities on roads and local river basins surrounding our plants
Participated in cleanup activities around the Miyata River Hitachi Works June and October 2021 Participated in cleanup activities organized by a local resident-led association for cleaning up the Miyata River. A total of 320 people participated in two sessions
Educational Activities Plant tours Various group locations Year-round Organized plant tours for area students (elementary, junior high, and high school), explaining plant facilities and the nature of the work performed
Internships Various group locations Year-round Internships for industrial high school, technical college, and university students; practical training and presentations
Held educational programs for the hearing impaired SCM Minera Lumina Copper Chile July 2021 Held an educational program for the hearing impaired living in the surrounding areas, helping them to obtain a driver's license
Held the Rikochallenge (science and engineering challenge) Kurami Works, Saganoseki Smelter & Refinery, JX Metals Smelting Co., Ltd. August 2021 Held plant tours, experiments on the characteristics of copper, and interactions with science and engineering employees for junior high students (→ Page 69)
Job skills training SCM Minera Lumina Copper Chile January 2022 Job skills training for residents of Tierra Amarilla in seven courses, including nursing, caregiving, sewing, cooking, welding techniques (approximately 180 participants)
Held an event in collaboration with the Shiba Regional City Office in Minato City Head Office February 2022 Held the Getting to Know the Copper Around Us program as a social science field trip program for elementary school students (→ Page 69)
Community Development Film festival Frankfurt Office May 2021 Screened A Town and a Tall Chimney at Nippon Connection, the Japanese Film Festival in Germany
Participated in Kurobe Fair 2021 JX Nippon Mikkaichi Recycle Co., Ltd. September 2021 Set up an online company booth to introduce our business at a regional industrial event hosted by Kurobe City
Covered security camera installation costs Saganoseki Smelter & Refinery, JX Metals Smelting Co., Ltd. December 2021 Covered a portion of the costs for a nearby neighborhood association installing security cameras. Received a letter of appreciation from Oita Prefecture
Participation in Christmas event SCM Minera Lumina Copper Chile December 2021 Distributed 3,400 Christmas gifts to children in schools and kindergartens, as well as to senior citizen groups and neighborhood associations in Copiapó Province
Sales event for local crafts SCM Minera Lumina Copper Chile December 2021 Held a sales event for local crafts such as textiles, leather goods, herbal products, jewelry at the Caserones Copper Mine cafeteria
Donations to Local Communities Donations to and sponsorship of local festivals and events Various group locations Year-round Provided donations to and sponsored local festivals, fundraisers, fireworks displays and other events
Donated plastic bottle caps, used stamps. JX Nippon Exploration and Development Co., Ltd., JX Metals Trading Co., Ltd. Year-round Collected and donated plastic bottle caps and used stamps
Donations to the fire department TANIOBIS GmbH 2021 Provided donations to the local fire department where the plant is located. The money was used to purchase weather sensors
Donations for train derailment victims Nikko Metals Taiwan Co., Ltd. April 2021 Provided donations to the victims of the Taroko Express train derailment
Donations of vending machine sales Saganoseki Smelter & Refinery, JX Metals Smelting Co., Ltd. January 2022 Provided donations of a portion of the proceeds from vending machines on the premises to a traffic accident orphans relief fund. Received a letter of appreciation from Oita Prefecture
Sports Promotion Collaboration with Mito HollyHock Head Office From April 2022 Concluded an official partner agreement (→ Page 72)
Kendo Club becomes a Corporate Sport Head Office, etc. From April 2022 Strengthening the activities of the Kendo Club as a corporate sport going forward

Community Development

Exhibition and sales event for local crafts held at a cafeteria

Donations to Local Communities

Children enjoying their Christmas gifts

Sports Promotion

Mito HollyHock

Activity Highlights

Donations to a Traffic Accident Orphans Relief Fund
Saganoseki Smelter & Refinery, JX Metals Smelting Co., Ltd.

For a number of years, we have donated a portion of the proceeds from vending machines installed on the premises of the Saganoseki Smelter & Refinery to a traffic accident orphans relief fund operated by Oita Prefecture. This relief and support fund provides various grants to help children orphaned by traffic accidents, in the hope that they will grow up healthy and strong. The Saganoseki Smelter & Refinery also engages in a wide range of traffic safety activities, including raising awareness of traffic safety among employees through education and other means, and supporting traffic safety promotion groups. Through these activities, we will continue to contribute to local communities.

Receiving a letter of appreciation from Oita Prefecture

Support Program for People with Disabilities Near Caserones
SCM Minera Lumina Copper Chile

As part of our community contribution activities, we held a driver training program for nearby residents with hearing impairments to obtain their driver’s licenses. This training program was the first of its kind in northern Chile. A total of 21 people with hearing impairments participated in the program and completed 100 hours of training.

Participants in the driver’s license training program

Contributing to Local Employment

As a global business enterprise, we believe that contributing to the development of local economies and communities through local employment plays an important role in building good relationships with local communities. The ratio of senior managers among locally hired employees at important overseas locations is 8.9% for men and 12.8% for women.

TOPICS
Launched the Kendo Club as a Corporate Sport

In April 2022, we designated the Kendo Club as a corporate sport in strengthening its activities. Kendo is a sport that we have been involved in for many years since the founding of the Hitachi Mine (Hitachi City, Ibaraki Prefecture), and it continues to be an in-house club activity. In order to position this historical kendo club as a corporate sport and to significantly strengthen the club's activity system, we have invited Ishida Toshiya, one of the greatest kendo instructors in Japan and a kendo instructor with the highest possible rank of hanshi 8th dan, to serve as the club's instructor. This is aimed at building a strong team that can compete in the All Japan Businessman's Kendo Championship. In addition, in order to actively contribute to society through kendo, we have secured a dedicated kendo hall in the vicinity of our head office as a venue for its activities, and will make effective use of it to support local sports and other activities.
Alongside strengthening the Kendo Club, we will actively promote efforts to contribute to the community and cultivate the next generation through sports, including support for community-based sports activities.

Kendo hall completed in September 2022

VOICE
Comments from Ishida Toshiya, Kendo Club Instructor

After retiring from the National Police Academy, I struck out on a new path as instructor of the historic JX Nippon Mining & Metals Kendo Club. I strongly agree with the Company's policy of strengthening the Kendo Club as a corporate sport and contributing to society through kendo. To help achieve this goal, I will do everything in my power to bring together all parties concerned, both internally and externally, while cherishing the bonds that are built through kendo.

Ishida Toshiya

Kendo Club Instructor

Ishida Toshiya

*Pictured in the front row, fourth from the left

Activities Related to COVID-19

Activities to Protect Employees and Their Families

We newly established a special leave system to return to Japan for expatriates stationed at overseas bases of the Company and their accompanying family members, helping them to reduce stress caused by the COVID-19 pandemic and to receive vaccinations in Japan. So far, a cumulative total of around 50 employees and family members have utilized this system.
Workplace vaccinations were administered up to the third shot at the head office and several operating sites, not only to employees and their families, but also to employees of subcontractors and neighboring companies as we expanded the scope of this program.
The Hitachi Works donated one ultra-low temperature freezer, enabling ultra-low temperature storage of vaccines, to Hitachi City. This freezer is used to store vaccines at a medical institution located in the city.
Hoping that COVID-19's spread will be brought under control as soon as possible, we will continue to engage in support activities both internally and externally.

The ultra-low temperature freezer provided for this project and its being unloaded

Participation in the IP Open Access Declaration Against COVID-19

In June 2020, JX Nippon Mining & Metals Corporation endorsed the purpose of and participated in the IP Open Access Declaration Against COVID-19 to support the fight against COVID-19. Under this declaration, companies promise to not exercise patent rights, utility model rights, design rights, or copyrights against any entity using said rights for the purpose of ending the spread of COVID-19. An announcement was made in May 2022, following the one in June 2021, to extend the term of the declaration in light of the ongoing pandemic.

Participation in the IP Open Access Declaration Against COVID-19 (Japanese only)

Donation of COVID-19 Prevention Equipment to Local Communities (Chile)

In February 2022, SCM Minera Lumina Copper Chile, the operator of the Caserones Copper Mine, donated 2,000 simple antigen test kits for COVID-19 to the Atacama Health Department in response to the resurgence of COVID-19 in Chile. In response to this donation, The director of Atacama Health Service, Claudio Baeza, expressed his appreciation for the company’s continued support during the pandemic.

COVID-19 test kits donated to Atacama Health Service

Stakeholder Engagement

The Group believes that understanding the demands of various stakeholders accurately, responding in good faith, and building relationships of trust will lead to an increase in corporate value. To this end, we take advantage of opportunities for dialogue with each stakeholder and engage in active two-way communications.

Key Stakeholders and Responsibilities Main Means of Communication Main Topics
Customers

We will contribute to achieving a more
affluent society by improving satisfaction and fulfilling our
social responsibilities through the stable and efficient supply
of high-quality products.

  • Communication in sales activities
  • Dissemination of information via website and SNS
  • Exhibited at the 8th Highly-functional Metal Expo
  • Invitation to SQUARE LAB
  • Stable supply of highly-functional products
  • Improve economic efficiency and added value of products
  • Improve environmental performance of products
  • Appropriate disclosure of product information
Shareholders and investors

As a major operating company of the
ENEOS Group, we will strive to disclose information in a
timely and appropriate manner through ENEOS Holdings, a listed
company.

  • Publication of Sustainability Report
  • Disclosure of information on website
  • IR news email distribution
  • General meeting of shareholders, financial results briefing, business office information
  • Stable profit return
  • Easy-to-understand information disclosure on management strategies
  • Full disclosure of ESG information
Employees

We will promote the creation of a rewarding
workplace, focusing on the improvement of the work
environment and the enhancement of training systems.
And we will strive to improve the motivation of each individual.

  • Publication of the group newsletter Cuprum
  • Preparation and distribution of the
    ESG Handbook and the Handbook for Supporting Balancing
    Childcare or Nursing Care
  • Implementation of self-assessment system
  • Hold online workshops
  • Dialogue between labor unions and management
  • Prevention of occupational accidents
  • Creation of diverse work styles
  • Penetration of Group ESG activities
  • Achieving diverse work styles
  • Enhancement of training system
  • Fair and equitable personnel evaluation
  • Maintaining and promoting mental and physical health
Business partners

We will conduct business with our
partners built on relationships of trust. We are working
to achieve fair and equitable transactions throughout the
supply chain.

  • Communication through purchasing activities
    (CSR Procurement Questionnaire)
  • Operation of an inquiry desk
  • Conducting surveys with business partners
  • Invitation to SQUARE LAB
  • Equal and fair trade
  • Management of occupational safety
Local communities

We will pursue coexistence and
co-prosperity at each of our bases by creating understanding of
our business and building cooperative relationships through
various exchange opportunities.

  • Creation of cooperation agreements with universities and
    establishment of joint research courses
  • Conducting factory tours, office tours, and visiting classes
  • Participation in and sponsorship of community events
  • Conduct briefings for local residents
  • Participation in local volunteer activities
  • Strengthening cooperation with local communities for their
    revitalization
  • Cultivation of a new generation and educational support
  • Reduce the environmental impact of the region
International community

We pay close attention to trends in global
warming and other international issues. We
engage with issues proactively and comply with laws and regulations.

  • Implement business practices that support the SDGs
  • Engage in activities as an ICMM member company
  • Agreement with and support for EITI
  • Response to TCFD / Endorsement of Challenge Zero
    / Response to CDP / Participation in WIPO GREEN /
    Response to the RBA Code of Conduct
  • Establishment of a resource-recycling society
  • Climate change adaptation and mitigation
  • Progress in the Digital Society
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