Identification and Management of Nature-Related Risks and Opportunities

Contribution to a Nature-Positive Future (the Philippines)

In the Philippines, the SMM Group has two HPAL plants —Coral Bay Nickel Corporation (CBNC) and Taganito HPAL Nickel Corporation (THPAL)—which produce intermediates for electrolytic nickel and nickel sulfate. As there are a diverse array of trees in the tropical rainforests on Palawan and Mindanao islands, where the HPAL plants are located, that support a rich ecosystem, we have engaged with stakeholders since the plant planning stage and have worked to reduce our environmental impact, including by taking measures to protect coral reefs. In the operational phase, we monitor the ecosystem surrounding the plant and assess the impact our operations may have on the surrounding environment on an ongoing basis. At CBNC, we are also working on rehabilitation projects for tailings storage facilities that have completed their useful life through reforestation, including soil improvement and the cultivation of saplings, with the aim of establishing a sustainable ecosystem.
These efforts have been recognized by the Philippine government, and we have received numerous prestigious awards.

Water Use Management (Risk Management)

GRI 303-1

Water is a shared resource of local regions and is closely connected to the lives of local residents and communities, as well as to the surrounding ecosystem. In addition to identifying water risks using WWF Water Risk Filter and then reducing those risks, our Group gives consideration to local communities and the environment in areas where we use water and is working with a sense of responsibility to make good use of the limited water resources.
CBNC in Palawan Island, the Philippines, makes effective use of water resources because the area is prone to water shortages during the dry season. For example, they treat supernatant water that accumulates in tailings facilities and then reuse the water in their smelting and refining processes. The Company also supplies this water as industrial water to slaked lime slurry manufacturing, who are suppliers for The Company. Furthermore, CBNC provides, maintains, and manages water supply equipment and delivers drinking water using tanker trucks as necessary as part of its water-related contributions to local communities. In addition, a team that consists of members from the Environmental Management Office (EMO), the department that conducts environmental management activities for the Company, local governments, NGOs, and other entities, strives to reduce the environmental effects of discharge by conducting regular water quality tests to determine if plant operation is having a major impact on water in the surrounding area.
The SMM Group also completes an annual CDP water security questionnaire regarding its water management. In FY2023, we established the Sumitomo Metal Mining Group Water Policy, announced it internally and externally, and informed employees about the policy.