“Shin” 3-business Collaboration Business Model
A distinguishing advantage of the SMM Group is the way in which our three businesses—Mineral Resources, Smelting & Refining, and Materials—collaborate organically in a manner which is not confined to mere vertical integration. Our “Shin” 3-business collaboration business model, with the Smelting & Refining Business at its core, is one of our Group’s major strengths, whereby we build a sustainable supply chain via collaboration among these businesses and contribute to the circular economy and carbon-neutral society.
Mineral
Resources
Smelting &
Refining
Possessing a highly advanced Smelting & Refining Business contributes to SMM’s ability to secure high-quality resource rights
Possessing a Smelting & Refining Business, which is capable of efficiently extracting valuable metals even from raw materials which are low-grade or have high levels of impurities, and which has a high production capacity, and thoroughly considers environmental aspects, give us competitive advantages in the acquisition of new, high-quality mineral resource interests.
- Mineral
Resources - Smelting &
Refining
Offsetting declining profits in our Smelting & Refining Business due to low TC/RC via gains from our Mineral Resources Business
Approximately 50–60% of the ore (copper concentrates) we process at SMM’s copper smelter (Toyo Smelter & Refinery) is “own mine” ore, which we source from mines in which we hold interests. We are committed to increasing this proportion to around 70–80% in the future. While TC/RC (processing margins for copper smelting and refining business) is currently at historically low levels, these own mines allow us to offset any decline in TC/RC leading to reduced Smelting & Refining Business profits via increased profits from our Mineral Resources Business.
- Mineral
Resources - Smelting &
Refining
Effectively utilizing ore from the Hishikari Mine as operating materials
Gold ore produced at the Hishikari Mine (Mineral Resources Business), which contains silica stone, serves as raw material for gold and silver in our Smelting & Refining Business while simultaneously being utilized as silica (SiO₂), an essential operating material in copper smelting and refining, and is thereby contributing to cost reductions in this business.
- Smelting &
Refining 
Materials
Contributing to GHG reduction through low-carbon products
While the generation of significant GHG emissions from our Smelting & Refining Business is unavoidable, through our Materials Business, we contribute to realizing a carbon-neutral society by supplying low-carbon products that utilize metals and other materials produced in our Smelting & Refining Business. (GHG reduction contribution target through the supply of products which contribute to a low-carbon society: 1.1 million t-CO₂/year)
- Smelting &
Refining - Materials
Supporting recycling with smelting and refining technology
We not only ensure a stable supply of base metals and rare metals essential for a carbon-neutral society, but also actively engage in recycling of various non-ferrous metals by leveraging our strengths in both dry and wet smelting processes. In recent years, we successfully achieved Japan’s first “battery-to-battery” horizontal recycling from used secondary batteries. We are currently constructing a recycling plant to recover and reuse copper, nickel, cobalt, and lithium from used secondary batteries and other sources. (Scheduled for completion in June 2026)
- Mineral
Resources - Smelting &
Refining - Materials
Building a total supply chain: From raw material sourcing to battery materials
We ensure traceability for raw material sourcing, stable supply, and quality through our integrated in-house nickel supply chain, which encompasses from ore mining to battery materials. This total supply chain, including battery materials, is one of SMM’s major strengths in facilitating the realization of a circular economy.
- Mineral
Resources - Smelting &
Refining - Materials
Through our highly profitable Materials Business We co-exist with and prosper alongside local communities
Many of our Materials Business sites in Japan are located in regions where we previously operated resource and smelting businesses. We are remaining a trustworthy presence among local communities and fulfilling our responsibilities by developing our Materials Business in these areas, with many of the products within our portfolio in this business characterized by high profitability.
- Mineral
Resources - Smelting &
Refining - Materials
Reducing profit and loss volatility through our Materials Business
We can mitigate any volatility in our Mineral Resources and nonferrous metals businesses due to our Materials Business being less susceptible to fluctuations in metal prices. We will grow our Materials Business as a domain in which high-margin product lines come together, even if these may not be large in scale.
- Mineral
Resources - Smelting &
Refining - Materials
Increasing sustainable corporate value through our “Shin” 3-business collaboration business model
Three-business collaboration delivers a wealth of tangible and intangible benefits, including the “pooling of knowledge” and information sharing among personnel from diverse backgrounds in “Mineral Resources,” “Smelting & Refining,” and “Materials,” in addition to marketing synergies. The SMM Group will achieve sustainable growth in corporate value by establishing and enhancing the “Shin” 3-business collaboration business model.
