Copper Smelting Industry 11 - Yao.pdf · Copper Smelting Industry in Japan - Challenging the future - Hiroshi Yao Chairman Japan Mining Industry Association Joint Meeting 2013 May

Copper Smelting Industry in Japan

- Challenging the future -

Hiroshi Yao Chairman Japan Mining Industry Association

Joint Meeting 2013

May 2013

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Contents

About JMIA

Recovery from the earthquake

Japan: Broad political & economic context

Business climate – our industry

What differentiates us from others

Challenges

Conclusion

JAPAN MINING INDUSTRY ASSOCIATION 2/29

About JMIA





Challenges

Conclusion


【Established】 April 1948 【Members】 8 major non-ferrous metal & smelting companies + 44 others 【Objective】 Sustainable development of non-ferrous industry in Japan 【Activities】 • Formulate and propose mining policies to the Government • Collect and share information on supply/demand and new applications • Promote best practice and science through seminars • Create educational opportunities for students and members through

coordination with academia, International Institute for Mining Technology and governmental bodies

• Interact with various stakeholders such as industrial associations and governmental bodies both in Japan and abroad to promote industry’s interest ( ICMM, ICSG, ILZSG, INSG, IWCC, ICA, IZA, ILA, ECI )

• Networking amongst members

JAPAN MINING INDUSTRY ASSOCIATION

About JMIA

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About JMIA





Challenges

Conclusion




2011 Tohoku Earthquake

Date： March 11, 2011 14:46

Magnitude ：9.0

Epicenter：Pacific Ocean off the Sanriku Coast

• Most powerful earthquake known to hit Japan

• Following Tsunami intensified damage

• More than 15,800 deaths, 2,600 missing

(as of Apr 2013)

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10 plants in Tohoku/Kanto area

Hachinohe

Onahama



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Berth & Unloader

Coastal Road Residential Area


Recovery from the earthquake After Earthquake and Tsunami Current

Outlet port

Tank house

• 410 employees • 350 contractors • dispatched staffs of

Mitsubishi Materials

The Revival of Onahama

Staffs engaged

Operations resumed

• 65% in 3.5 months • 100% in 5.5 months

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About JMIA





Challenges

Conclusion




• Stock market that peaked 23 years ago

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Nikkei 225

• Prolonged deflation

• Increasing public debt • Rapidly aging society

Are we setting precedents of “challenges” in an advanced society?

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Mr Abe came to power

About JMIA





Challenges

Conclusion


Business climate – our industry 1. Competition from emerging countries


5000

10000

15000

20000

25000

Cap

acit

y (K

mt)

World Copper Smelter Capacity

Other

North America

Latin America

Europe

Indonesia

Japan

China

Source:

WoodMackenzie

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+50% in 10+years led by Chinese



2. Shrinking domestic demand

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Copper supply/demand - Japan Supply

Demand

Unit : Kt Cu

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2006 2007 2008 2009 2010 2011 2012

Sulfuric acid supply/demand - Japan

Source: JMIA

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3. Environmental challenges

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The question


Are we going to continue to be a viable contributor to

Japanese/global economy?

Yes, we are!!

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About JMIA





Challenges

Conclusion


Pogo,Sumitomo

Hishikari,Sumitomo

Gold mine

Morenci,Sumitomo

La Candelaria,Sumitomo

Cerro Verde,Sumitomo

Ojos del Salado,Sumitomo Northparkes,

Sumitomo

Goro, Sumitomo

Taganito,Sumitomo Soroako,Sumitomo

Rio Tuba,Sumitomo

Batu Hijau, Sumitomo Mitsubishi Furukawa

Figesbal,Sumitomo

Namosi, Mitsubishi, Nittetsu

Copper Mountain,Mitsubishi

Escondida,JX,Mitsubishi

Los Pelambres,JX,Mitsubish

Atacama Kozan,Nittetsu Caserones,PPC

Sierra Gorda,Sumitomo

Collahuasi,JX,Mitsui Huanzala,Mitsui

Atalaya,Mitsui

Rasp,Toho Endeavor,Toho

Tizapa,Dowa

Gibraltar,Dowa,Furukawa

Copper mine Zinc mine Lead mine Nickel mine Uranium mine

McClean Lake,OURD

Akouta,OURD

Huckleberry, Mitsubishi

Dowa Furukawa

Midwest,OURD

Pallca,Mitsui

What differentiates us


1. Investment in first-class mines

•Have secured supplies from first-class mines through participation in mine projects •Aiming to increase the portion of supplies from invested mines

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Project Country Production

commenced

Share of Japanese entities

Morenci US 1987 15.0%

Escondida Chile 1990 12.5%

La Candelaria Chile 1995 20.0%

Northparkes Australia 1996 20.0%

Huckleberry Canada 1997 50.0%

Collahuasi Chile 1998 12.0%

Batu Hijau Indonesia 1999 35.0%

Los Pelambres Chile 2000 40.0%

1. (cont.) Investment in first-class mines

Project Country Production

commenced

Share of Japanese entities

Antamina Peru 2001 10.0%

Atacama Kozan Chile 2003 60.0%

Cerro Verde Peru 2006 21.0%

Ojos del Salado Chile 2006 20.0%

Copper Mountain Canada 2011 25.0%

Gibraltar Canada 2013 25.0%

Caserones Chile 2013 100.0%

Sierra Gorda Chile 2014 45.0%

List of Japanese investment in copper mine projects (1987~ present)

Source: JMIA



1. (cont.) Investment in first-class mines

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Others

Imports frominvested mines

Ratio of importsfrom invested mines (%)

x 1,000t % Copper Concentrate Imports - Invested Mines

Source: JMIA



2. Smelters – the ideal infrastructure for recycling

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No Waste

Slags

Acid

Copper Smelter



3. Government-supported recycling-system

Chronology of recycling-related regulations

2000 The Basic Law for Establishing

the Recycling-based Society

2001 Home Appliance Recycling Law

(air conditioner, TV, refrigerator, washing machine)

2004 addition of freezer to HARL

2005 Act on Recycling, etc. of End-of-Life Vehicles

2009 addition of LCD/Plasma TV, dryer to HARL

2013 Small Home Appliance Recycling Law

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Smelters

To Consumers

Manufacturers

Authorized Recyclers

Municipalities Retailers

Consumers collected

Recovery of metals

Dismantled, Crushed & sorted

Used as raw materials

Small home appliance recycling law (effective Apr 2013)

3. (cont.) Government-supported recycling-system

Source: MOE, METI

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A slight digression…

“Sense of regret concerning waste when the intrinsic value of an object or resource is not properly used.”

“Mottainai “ （もったいない）

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About JMIA





Challenges

Conclusion


Challenges


•Strict environmental regulations

•By-product sales

•Electricity costs

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About JMIA





Challenges

Conclusion


Conclusion


•serves crucial needs of our countries •vital industry that “bridges” the value chain

•collaborates with both upstream/downstream industries to make contribution to society


Thank you!

ありがとうございました。

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Copper Smelting Industry 11 - Yao.pdf · Copper Smelting Industry in Japan - Challenging the future - Hiroshi Yao Chairman Japan Mining Industry Association Joint Meeting 2013 May

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