Acknowledging Grievances and Providing Explanations for Relocations

When grievances are voiced by governmental agencies or local communities at each site, we respond appropriately and share the information within the Company. In FY2022, the Group received four grievance reports from local residents, including ones concerning abnormal odors. All of these were handled in an appropriate manner.
Additionally, whenever we have no choice but to ask local residents to relocate their residences due to development of a mine or related facilities, we provide alternative sites and obtain their understanding in advance. At the Hishikari Mine, we asked three local households to relocate between 1983 and 1989, and at THPAL, we asked 41 households in the affected area to relocate.^*
We are also planning to implement a human rights due diligence program targeting local residents at our overseas sites.
Furthermore, when closing a mine, we work to maintain local employment through initiatives such as building plants for other businesses in the area. For example, when excavation at the Kunitomi Mine was stopped because of resource depletion, it continued to operate as a Smelter & Refinery. Then, when the Smelter & Refinery was closed in 1973, it was converted into a plant for manufacturing materials used in electronic components. Currently it is being operated by Sumiko Kunitomi Electronics Co., Ltd. and produces high-quality products, such as lithium tantalate and samarium iron nitride.

• The relocation was planned in accordance with the World Bank Operational Policy on Involuntary Resettlement and was completed by December 2010 with the consent of all residents. After the relocation, we have continued to provide support for the repair and maintenance of the houses, as well as livelihood restoration support programs that encourage residents to acquire skills and know-how that will enable them to generate income in the future