Effective Use of Non-Ferrous Metal Resources

Medium-Term Targets and Progress

1. 1) Advance copper mine projects

  • Strengthen production structure at JV mines to achieve and maintain copper production level of 300 kt/year from interests
  • Achieve steady copper production level by reinforcing exploration of surrounding and deep areas in JV mines, expanding mineral processing technology, and improving operations leveraging IoT and AI
  • Advance Phase 2 and later projects at the Quebrada Blanca Copper Mine
FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
  • Copper attributable production at JV mines in 2022 was 200 kt, falling short of the forecast of 220 kt (announced in May 2022)
  • Reasons for this included a shortage of truck staff at the Morenci Copper Mine, effects of the COVID-19 pandemic at the Cerro Verde Copper Mine, truck maintenance delays and sinkhole accidents at the Candelaria Copper Mine and Ojos del Salado Copper Mine, and decline in grade of the main ore body at Northparkes Copper Mine
  • Focused on the start of copper concentrate production from Phase 2 at the Quebrada Blanca Copper Mine
  • Copper attributable production at JV mines in 2023 is predicted to be 210 kt
  • At all mines, undertake measures to overcome the challenges of 2022 and urge steady implementation of these measures through participation in the Management Committee and technical meetings
  • Begin copper concentrate production from Phase 2 at the Quebrada Blanca Copper Mine, and study subsequent projects
 Achievement Criteria
  • Achieve copper production level on an interest basis of 270 kt by starting production in Quebrada Blanca Phase 2, etc.
  • Aim to obtain further interests to achieve copper production level on an interest basis of 300 kt, which is the long-term vision
Action Plan
  • Post-pandemic, strengthen collaboration with operating sites and contribute in terms of management and technology to ensure production levels in JV mines exceed plans
  • Continue to strengthen collaboration with operating sites and contribute in terms of management and technology to ensure production levels in JV mines exceed plans

1. 2) Acquire new superior copper and gold resources

  • Develop new mines for which we have operatorship
FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
  • Through channels including Kenorland Minerals Ltd., in which we invested in 2021, conducted studies aimed at entry into new JV exploration projects, acquisition of new mines, etc.
  • Also engaged in onsite surveys, information gathering necessary for the formation of new JV exploration projects, etc.
  • Through entry into new JV exploration projects, information gathering aimed at acquisition of new mines, onsite surveys, etc., plan to continue conducting studies aimed at obtaining new operatorship
 Achievement Criteria
  • Participate in new exploration projects through joint ventures and prepare for acquisition of new mines, etc., to obtain new operatorship
  • Participate in new exploration projects through joint ventures and make preparations to acquire new mines to obtain new operatorship
Action Plan
  • Gather information required to form new exploration projects through joint ventures and conducted site surveys. Also, enhance project pipeline management, including participation in late-stage exploration projects.
  • Gather information required to form new exploration projects through joint ventures and conducted site surveys. Also, enhance project pipeline management, including participation in late-stage exploration projects.

1. 3) Improve productivity by introducing new technology

  • Promote remote operation and unmanned operation of heavy machinery and information infrastructure equipment inside and outside of the Hishikari Mine
FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
  • At the Hishikari Mine, proceeded with the provision of Wi-Fi in the mine under a three-year plan, and introduced our first automated driving and ground-based remote control system for the underground load haul dump (LHD) loaders that load and transport ores, launching operational tests in tunnels
  • Continue to provide Wi-Fi in the mine and test LHD loader automated driving, and work to further enhance operational efficiency by means including introduction of new technologies such as drilling machines with navigation functions and semi-automated longhole drilling machines, and improvement of the waste stone rate through the introduction of new ore sorters
 Achievement Criteria
  • Establish ICT infrastructure (Wi-Fi) and begin introduction of (1) automated LHD loaders; (2) automated drilling machinery; and (3) remote operation and monitoring of heavy machinery and vehicles, etc. at the Hishikari Mine
  • Firmly establish (1) automated LHD loaders; (2) automated drilling machinery; and (3) remote operation and monitoring of heavy machinery and vehicles, etc. (plan to introduce some during the 2024 3-Year Business Plan) and begin further introduction of new technology at the Hishikari Mine
Action Plan
  • Based on status of introduction of new technology at the Hishikari Mine, examine more specific measures for promoting remote operation and unmanned operation of heavy machinery and information infrastructure equipment inside and outside the mine
  • Based on status of introduction of new technology at the Hishikari Mine, examine more specific measures for promoting remote operation and unmanned operation of heavy machinery and information infrastructure equipment inside and outside the mine

1. 4) Advance nickel ore projects and improve productivity

  • Nickel production: 150 kt/year
  • Ni Recovery rate compared to FY2018: +2%
FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
  • Accelerated examination of new nickel projects to replace the Pomalaa Project
  • CBNC fell short of target due to fluctuations in ore quality, but THPAL achieved target
  • Narrow down new nickel projects and continue detailed study
  • Maintain and improve Ni recovery rate
 Achievement Criteria
  • Increase production volume to achieve 150 kt/year
  • Maintain and increase Ni recovery rate
  • Increase production volume to achieve 150 kt/year
  • Maintain and increase Ni recovery rate
Action Plan
  • Continue to develop technology and improve processes to increase production volume
  • Continue to improve processes through technology development, etc.
  • Search for new nickel mineral sources
  • Continue to develop technology and improve processes to increase production volume
  • Continue to improve processes through technology development, etc.
  • Search for new nickel mineral sources

1. 4) Advance nickel ore projects and improve productivity

  • Recovery of scandium by-product
  • Recovery of chromite by-product
FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
  • Achieved record-high production volume of scandium
  • Achieved record-high production volume of chromite
  • Increase scandium production volume
  • Increase chromite production volume
 Achievement Criteria
  • Increase production volume to design capacity
  • Maintain production volume at design capacity
Action Plan
  • Ensure Sc recovery rate and increase production volume
  • Ensure Cr recovery rate and maintain production volume

2. 1) Develop technology to separate, stabilize and bleed off, and create value for impurities generated by smelting processes and mines

  • Develop technology to stabilize and bleed off impurities: Develop and demonstrate the process
FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
  • Studied the application of technology for separation of arsenic from copper concentrates to future operations and to other separation technologies, investigating overseas research and development cases and drawing on our knowledge obtained from research results to date
  • Continue studying latest research cases
 Achievement Criteria
  • Utilize knowledge gained through research
  • Utilize knowledge gained through research
Action Plan
  • Examine use of knowledge gained through research in future mine operations and other separation technology
  • Examine use of knowledge gained through research in future mine operations and other separation technology

2. 2) Develop technology to create value from unused non-ferrous metal resources

  • Contribute to existing (e.g. marine resource development) and new development projects
FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
  • In the final year of a five-year plan formulated by the government, leveraged our technical knowledge to participate in massive sulfide deposit and cobalt-rich ferromanganese crust projects
  • Plan to participate in projects targeting sea-floor massive sulfide deposits, cobalt-rich ferromanganese crust, etc. based on the next Ocean Energy & Mineral Resource Development Plan to be formulated by the Ministry of Economy, Trade and Industry
 Achievement Criteria
  • Participate in some form in the next Ocean Energy & Mineral Resource Development Plan (FY2023 onward) to be formulated by the Ministry of Economy, Trade and Industry
  • Participate in some form in the next Ocean Energy & Mineral Resource Development Plan (FY2023 onward) to be formulated by the Ministry of Economy, Trade and Industry
Action Plan
  • Contribute in the role of industry by participating in research and development JVs for individual projects, in Japan Organization for Metals and Energy Security (JOGMEC) committees for exploration, mining, ore lifting, mineral processing, smelting and refining, etc.
  • Contribute in the role of industry by participating in research and development JVs for individual projects, in JOGMEC committees for exploration, mining, ore lifting, mineral processing, smelting and refining, etc.

2. 3) Recover non-ferrous metal from hard-to process resources

  • Participate in business and technology for recovery of lithium from salt-lake water in the presence of high levels of impurities
FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
  • Conducted conceptual design and preliminary capital expenditure (CAPEX) estimation to evaluate the commercial potential of direct lithium extraction (DLE) technology
  • Reduced freshwater usage in the DLE process close to the target
  • Promoted development of adsorbent through joint research with universities
  • Start pilot trials using actual brine water
  • Continue to study commercialization
  • Achieve target water usage in the DLE process
  • Continue the development of adsorbent through joint research
 Achievement Criteria
  • Develop adsorbent for practical use and manufacturing processes for lithium chemicals
  • Demonstrate process feasibility through on-site pilot tests, etc.
  • Participate in construction and operation of commercial plant (plan to implement study of commercialization model during the 2024 3-Year Business Plan)
Action Plan
  • Improve adsorbent through joint research with Universities
  • Design overall process and verify economic feasibility
  • Participate in lithium operations and stabilize product quality
Items or targets to be implemented during the 2024 3-Year Business Plan
  • Obtain data for feasibility study through demonstration plant
  • Conduct design and feasibility study of commercial plant

3. Demonstrate and commercialize recycling technology for automobile secondary battery

  • Demonstrate, commercialize, and expand scale of recycling technology that recovers cobalt from automotive lithium-ion batteries Commence commissioning and commercial operation of pre-commercial plant: FY2026
FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
  • In studies of processes for recovery of copper, nickel, cobalt and lithium at the pilot plant, (1) passed users’ evaluations of properties of batteries made with recovered nickel and cobalt, and (2) optimized pretreatment methods aimed at greenhouse gas (GHG) reduction
  • Continue to study processes aimed at GHG reduction
  • Start construction work on pre-commercial plant
 Achievement Criteria
  • Continue construction work on pre-commercial plant (Start test operation of pre-commercial plant in FY2026)
  • Processing of 10,000 t/year at pre-commercial plant
Action Plan
  • Continue construction work on pre-commercial plant
  • Improve technology to increase processing volume of its pre-commercial plant

4. 1) Leverage our strengths to create new products and new businesses that contribute to society

  • Research, develop, and commercialize new advanced materials in the fields of energy, automobiles, and information communications
FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
  • Explored new themes using a new business creation system
  • Established the GX Materials Science Co-Creation Research Center in cooperation with Tohoku University and launched search for themes related to a hydrogen-based society and future batteries
  • Narrow down new theme candidates explored using the new business creation system, through market research and collaboration with universities
  • In co-creation of a vision with Tohoku University, continue to explore themes aimed at the achievement of a solar energy society; at the GX Materials Science Co-Creation Research Center, continue to explore themes of a hydrogen-based society and future battery materials, and propose new candidate themes
 Achievement Criteria
  • Study potential R&D themes that will lead to commercialization
  • Implement working group activities and activities such as joint research on future co-creation with universities
  • Move on to the next stage of R&D themes with a view to commercialization
  • Continue joint research with universities on new businesses
Action Plan
  • Operate new business creation system and manage progress of research themes
  • Develop human resources and explore themes utilizing new working group activities and co-creation activities with universities
  • Use our X-MINING information dissemination website and take part in exhibitions
  • Continually improve activities aimed at new business creation
Items or targets to be implemented during the 2024 3-Year Business Plan
  • Operate new business creation system and manage progress of research themes
  • Continually develop human resources to create new businesses and new themes
  • Continue to disseminate information, including at exhibitions

4. 2) Hold raw materials in-house for favorable and stable procurement

  • Commercialize NiO for fuel cells following demonstration project
FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
  • Continued demonstration tests at pilot plant
  • Continued demonstration tests at pilot plant
 Achievement Criteria
  • Continued demonstration tests at pilot plant
  • Decide on investment in mass production based on feasibility study
  • Expand business size to accommodate sustained growth of fuel cell battery market
Items or targets to be implemented during the 2024 3-Year Business Plan
  • Introduce mass production equipment and expand business size
  • Establish business profitability
Action Plan
  • Improve profitability by reducing production costs and optimizing selling prices
  • Prepare for mass production (installation location, design, and quotations) and carefully examine market
  • Decide on investment in mass production based on feasibility study
  • Continually assess business feasibility and make decisions on investment in boosting production
  • Gain further competitive advantage (cost, technology, etc.)
Items or targets to be implemented during the 2024 3-Year Business Plan
  • Introduce mass production equipment and start up as soon as possible
  • Achieve business profitability by expanding sales

4. 3) Expand sales of low-cost battery cathode materials through favorable, stable procurement of our own nickel raw materials

  • Maintain top class global share in the expanding cathode materials market
FY2022 Results FY2023 Plan Final Year of 2021 3-Year Business Plan
(FY2024)		 Final Year of 2027 3-Year Business Plan
(FY2030)
  • Continued to advance construction, staff recruitment, etc. according to plan for 2,000 t/month expansion, with the aim of starting test operation in FY2024
  • Conducted surveys and studies related to next production expansion
  • Make decision on implementation of 2,000 t/month expansion according to plan and on implementation of post-processing equipment expansion
  • Continue to conduct surveys and studies related to next production expansion
 Achievement Criteria
  • Expand production capacity for cathode materials to reach 7,000 t/month (complete in FY2025)
  • Maintain top class share of market
  • Construct 15,000 t/month production capacity for cathode materials
  • Maintain top class share of market
Items or targets to be implemented during the 2024 3-Year Business Plan
  • Establish 10,000 t/month production capacity for cathode materials
  • Maintain top class share of market
Action Plan
  • Establish stable production of 4,850 t/month
  • Expand production by 2,000 t/month
  • Aim for 15,000 t/month production capacity (Aim for 10,000 t/month during the 2024 3-Year Business Plan)

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