Effective Use of Non-Ferrous Metal
Resources
Environmental Management

Environment

Climate Change
Significant Environmental Accidents /Biodiversity
Environmental Data

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Environment

 Environment

Effective Use of Non-Ferrous Metal Resources

Vision for 2030

Medium-Term Targets and Progress

GRI 3-3

To achieve our Vision for 2030, we are managing progress for each KPI and have made achievement criteria and action plans for up to 2030.

A company that generates resources through hightechnological capabilities

FY2022 Results

Approach and Policy

GRI 3-3



Relevant departments

Check progress
on KPIs

Department in charge(business division, etc.)

Collaborate
and cooperate

Digital Transformation
Department
Engineering Division
Purchasing Department
Legal Department, etc.

• Continue to provide Wi-Fi in the mineand test LHD loader automated driving, and work to further enhance operational efficiency by means including
introduction of new technologies suchas drilling machines with navigation
functions and semi-automated longhole drilling machines, and improvement of the waste stone rate throughthe introduction of new ore sorters

Action Plan

Collaborate
and cooperate• 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

Efficient Resource Utilization Subcommittee• Aim to obtain further interests toachieve copper production level on aninterest basis of 300 kt, which is thelong-term vision• Post-pandemic, strengthen collaboration with operating sites and contribute in terms of management andtechnology to ensure production levels in JV mines exceed plans• Continue to strengthen collaboration
with operating sites and contribute interms of management and technology
to ensure production levels in JV
mines exceed plans• Participate in new exploration projects
through joint ventures and prepare foracquisition of new mines, etc., toobtain new operatorship• Participate in new exploration projects
through joint ventures and makepreparations to acquire new mines toobtain new operatorship• Gather information required to form
new exploration projects through joint
ventures and conducted site surveys.
Also, enhance project pipeline management, including participation inlate-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 inlate-stage exploration projects.

KPI 	1. 3) Improve productivity by introducing new technology•P romote remote operation and unmanned operation of heavy machinery and information infrastructure equipment inside and outside of
the Hishikari Mine• At the Hishikari Mine, proceeded withthe provision of Wi-Fi in the mine
under a three-year plan, and introduced our first automated driving andground-based remote control system
for the underground load haul dump
(LHD) loaders that load and transportores, launching operational tests intunnels

President

Chair: Executive officer in charge of the Technology Division
Deputy Chair: Senior Deputy General Manager of the Technology Division
Members: Personnel in charge of each department• Through channels including Kenorland
Minerals Ltd., in which we invested in
2021, conducted studies aimed atentry into new JV exploration projects,
acquisition of new mines, etc.
• Also engaged in onsite surveys, information gathering necessary for theformation of new JV exploration projects, etc.

Action Plan

As activities concerning the effective use of non-ferrous metal resources, one of our material issues, involve numerous KPIs and specific measures that must be made consistent with business strategy, the activities are led by business divisions. The business divisions collaborate and cooperate with the Efficient Resource Utilization Subcommittee and relevant departments to engage inactivities aimed at achieving our KPIs and Vision for 2030.
The Efficient Resource Utilization Subcommittee, which has the Technology Division as its secretariat, performs progress management and support for the activities of the business units. Because the Technology Division plays a particularly large role in providing
support for technical aspects, our support structure integrates this division with the subcommittee.

Sustainability Committee• Achieve copper production level on aninterest basis of 270 kt by starting production in Quebrada Blanca Phase 2,
etc.

KPI 	1. 2) Acquire new superior copper and gold resources• Develop new mines for which we have operatorship

GRI 3-3

 Promotion Structure• Copper attributable production at JV
mines in 2023 is predicted to be 210 kt• At all mines, undertake measures toovercome the challenges of 2022 andurge steady implementation of thesemeasures through participation in theManagement Committee and technical meetings• Begin copper concentrate production
from Phase 2 at the Quebrada Blanca
Copper Mine, and study subsequent
projects

Achievement
Criteria

Promotion Structure• Copper attributable production at JV
mines in 2022 was 200 kt, falling shortof the forecast of 220 kt (announced in
May 2022)• Reasons for this included a shortage oftruck 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 Mineand Ojos del Salado Copper Mine, anddecline in grade of the main ore bodyat Northparkes Copper Mine• Focused on the start of copper concentrate production from Phase 2 at
the Quebrada Blanca Copper Mine

Action Plan

Non-ferrous metal resources see wide use in fields connected to the resolution of social issues such as climate change. By making effective use of finite non-ferrous metal resources without waste, we believe that
we can contribute to achieving a sustainable society. Our Group uses our production capabilities as afoundation for carrying out research and development that includes collaboration with external parties,
and works to enhance our technological capabilities related to product creation. We strive to stably supply
non-ferrous metal resources, create value from unused resources, and utilize technologies for recoveringand recycling hard-to-process resources.

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	1. 1) Advance copper mine projects• S trengthen production structure at JV mines to achieve and maintain copper production level of 300 kt/year from interests•A chieve 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•A dvance Phase 2 and later projects at the Quebrada Blanca Copper Mine
Achievement
Criteria

1. A company that stably provides non-ferrous metals to society
2. A company that contributes to society by effectively using impurities through collaborative, open technologicaldevelopment among industry, academia, and government
3. A company that contributes to the construction and maintenance of recycling systems for non-ferrous metals
4. A company that develops and supplies highly advanced materials that contribute to the resolution of social issues

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

• Establish ICT infrastructure (Wi-Fi) andbegin introduction of (1) automated
LHD loaders; (2) automated drillingmachinery; and (3) remote operationand monitoring of heavy machineryand vehicles, etc. at the Hishikari Mine• Firmly establish (1) automated LHD
loaders; (2) automated drilling machinery; and (3) remote operation andmonitoring of heavy machinery andvehicles, etc. (plan to introduce someduring the 2024 3-Year Business Plan)
and begin further introduction of newtechnology at the Hishikari Mine

• Based on status of introduction of newtechnology at the Hishikari Mine,examine more specific measures forpromoting remote operation andunmanned operation of heavymachinery and information infrastructure equipment inside and outside themine• Based on status of introduction of newtechnology at the Hishikari Mine,examine more specific measures forpromoting remote operation andunmanned operation of heavymachinery and information infrastructure equipment inside and outside themineBusiness sites (plants, mines, Group companies, etc.)

32

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Environment

 Environment

Effective Use of Non-Ferrous Metal Resources

FY2022 Results

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	1. 4) Advance nickel ore projects and improve productivity• Nickel production: 150 kt/year• Ni Recovery rate compared to FY2018: +2%• Increase production volume to achieve
150 kt/year• Maintain and increase Ni recovery rate

• Continue to develop technology andimprove processes to increase production volume• Continue to improve processes
through technology development, etc.
• Search for new nickel mineral sources• Continue to develop technology andimprove processes to increase production volume• Continue to improve processes
through technology development, etc.
• Search for new nickel mineral sources

KPI 	1. 4) Advance nickel ore projects and improve productivity• Recovery of scandium by-product• Recovery of chromite by-product• Maintain production volume at design
capacity• Ensure Sc recovery rate and increase
production volume• Ensure Cr recovery rate and maintainproduction volume

KPI 	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

Action Plan

• Utilize knowledge gained throughresearch• Utilize knowledge gained throughresearch• 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

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

• 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

34

• Plan to participate in projects targetingsea-floor massive sulfide deposits,cobalt-rich ferromanganese crust, etc.
based on the next Ocean Energy &Mineral Resource Development Plan tobe formulated by the Ministry of
Economy, Trade and Industry

Achievement
Criteria• In the final year of a five-year plan formulated by the government, leveraged our technical knowledge toparticipate in massive sulfide deposit
and cobalt-rich ferromanganese crust
projects• Contribute in the role of industry byparticipating in research and development JVs for individual projects, inJapan Organization for Metals andEnergy Security (JOGMEC) committees
for exploration, mining, ore lifting,mineral processing, smelting and refining, etc.

• Contribute in the role of industry byparticipating in research and development JVs for individual projects, in
JOGMEC committees for exploration,mining, ore lifting, mineral processing,
smelting and refining, etc.

• Continue to study processes aimed at
GHG reduction• Start construction work on pre-commercial plant• 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)• Improve adsorbent through joint
research with Universities• Design overall process and verify economic feasibility• Participate in lithium operations andstabilize 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 ofcommercial plant• 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• Continue construction work on
pre-commercial plant• Improve technology to increase processing volume of its pre-commercial
plant

KPI 	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• Explored new themes using a new
business creation system• Established the GX Materials Science
Co-Creation Research Center in cooperation with Tohoku University andlaunched search for themes related toa hydrogen-based society and future
batteries• Narrow down new theme candidates
explored using the new business creation system, through market researchand 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 ahydrogen-based society and future
battery materials, and propose new
candidate themes

Action Plan

KPI 	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• In studies of processes for recovery ofcopper, nickel, cobalt and lithium at
the pilot plant, (1) passed users’ evaluations of properties of batteries madewith recovered nickel and cobalt, and(2) optimized pretreatment methods
aimed at greenhouse gas (GHG)
reduction

Achievement
Criteria• Continue studying latest research
cases

Achievement
Criteria• Studied the application of technology
for separation of arsenic from copper
concentrates to future operations andto other separation technologies,
investigating overseas research anddevelopment cases and drawing on
our knowledge obtained from research
results to date

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	3. Demonstrate and commercialize recycling technology for automobile secondary battery•D emonstrate, 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

Action Plan

Action Plan

• Increase production volume to design
capacity• Start pilot trials using actual brinewater• Continue to study commercialization• Achieve target water usage in the DLE
process• Continue the development of adsorbent through joint research

Achievement
Criteria• Increase scandium production volume• Increase chromite production volume

Achievement
Criteria• Achieved record-high production volume of scandium• Achieved record-high production volume of chromite• Conducted conceptual design andpreliminary capital expenditure(CAPEX) estimation to evaluate thecommercial 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

Action Plan

Action Plan

• Increase production volume to achieve
150 kt/year• Maintain and increase Ni recovery rate

Achievement
Criteria• Narrow down new nickel projects andcontinue detailed study• Maintain and improve Ni recovery rate

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

KPI 	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

Achievement
Criteria• 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

FY2022 Results• Study potential R&D themes that willlead 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 tocommercialization• Continue joint research with universities on new businesses• 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 newthemes• Continue to disseminate information,
including at exhibitions

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Environment

 Environment

Effective Use of Non-Ferrous Metal Resources

FY2022 Results

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Final Year of 2027 3-Year Business
Plan (FY2030)

Recycling of Low-Grade Nickel Oxide Ores

KPI 	4. 2) Hold raw materials in-house for favorable and stable procurement• Commercialize NiO for fuel cells following demonstration project• Continued demonstration tests at pilot
plant

Achievement Criteria• Continued demonstration tests at pilot
plantAction Plan

• Continued demonstration tests at pilotplant• Decide on investment in mass production based on feasibility study• Expand business size to accommodate
sustained growth of fuel cell battery
marketItems or targets to be implemented
during the 2024 3-Year Business Plan
• Introduce mass production equipment
and expand business size
• Establish business profitability• 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 inboosting 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

KPI 	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• Make decision on implementation of
2,000 t/month expansion according toplan and on implementation of
post-processing equipment expansion• Continue to conduct surveys and studies related to next production
expansion

Achievement Criteria• Continued to advance construction,
staff recruitment, etc. according toplan for 2,000 t/month expansion,
with the aim of starting test operation
in FY2024• Conducted surveys and studies related
to next production expansion

Contribution to a Circular Economy (effective use of resources)

Action Plan

• 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• 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 the2024 3-Year Business Plan)

Smelting and refining of low-nickel-content oxide ores found near the earth’s surface involves numerous technical challenges thatmade it difficult to achieve on a commercial basis. However, such low-grade oxide ores are said to account for about 70% of theworld’s nickel oxide mineral resources, which lead to worldwide demand for development of technology to enable its processing.
Drawing on our advanced equipment engineering and operation technologies, in April 2005 our Group led the world in achieving
large-scale commercial production via the hydrometallurgical processing technology known as HPAL at Coral Bay Nickel
Corporation (CBNC)1 in the Philippines.
In 2013, Taganito HPAL Nickel Corporation (THPAL)2 began
operation as our second HPAL plant. The nickel intermediate
smelted and refined at the two HPAL plants is used in Japan aselectrolytic nickel and as secondary battery cathode material forelectric vehicles. We also recover and recycle cobalt contained in
the intermediate and scandium and chromite contained in theore.
1. Coral Bay Nickel Corporation (CBNC): Shareholders: Sumitomo Metal Mining Co., Ltd.
(84.375%); Nickel Asia Corporation (15.625%). Head Office: Rio Tuba, Bataraza, Palawan
Province, Philippines
2. Taganito HPAL Nickel Corporation (THPAL): Shareholders: Sumitomo Metal Mining Co.,
Ltd. (75%); Mitsui & Co., Ltd. (15%); Nickel Asia Corporation (10%). Head Office: Taganito,
Surigao del Norte Province, Philippines

 Supply Chains for Realizing a Stable Supply of Nickel(nickel grade: approx. 1%)

Low-grade nickel
oxide ores

THPAL

Nickel matte
Other raw materials

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Sustainability Report 2023

(nickel grade: approx. 2%)

Hyuga Smelting
Co., Ltd

Nickel ore

Nickel mine
(New Caledonia)

Precursors

Nickel sulfate
Nickel chloride

Precursors

Batterymaterials

Battery materials, nickel powder
Electrolytic nickel(nickel grade: 99.99%)

Customers

PT Vale Indonesia,
others(nickel grade: approx. 1%)

MS(nickel grade:approx. 55–60%)

Niihama Nickel Refinery

Taganito
Nickel Mine

CBNC

Isoura Plant

Rio Tuba
Nickel Mine

Nickel sulfate

Sumiko Energy
Materials Co., Ltd.

Low-grade nickel
oxide ores

Harima RefineryWe maintain fully integrated supply chains covering from ores
through to metals and materials

36

Low-grade nickel oxide ore for THPAL

Other chemical products

Ferronickel(nickel grade: approx. 15–20%)

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Sustainability Report 2023

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Environment

 Environment

Effective Use of Non-Ferrous Metal Resources

Battery Recycling

Other Recycling Initiatives

As automobiles undergo what is expected to be a rapid and long-term shift to electric drive and battery capacity becomes increasingly higher, demand is growing for the copper, nickel, cobalt, and lithium used in lithium-ion secondary batteries (LIBs) for electricvehicles, leading to calls for effective resource recycling.
Since 2017, we have been working to recover and reuse the copper and nickel contained in LIBs through a process that combines the Toyo Smelter & Refinery’s copper smelting and refining processes and the Niihama Nickel Refinery’s nickel smelting andrefining processes. The recovered nickel, in particular, is processed into a secondary battery cathode material at the Isoura Plant,
realizing Japan’s first “battery to battery” horizontal recycling using materials recovered from used LIBs.
In addition to this, we have been promoting LIB recycling research and development and demonstrated in 2021 that cobalt, forwhich resource depletion is a concern, can also be recovered, purified to a high level, and reused as a raw material for LIB cathodematerials. Moreover, through joint development with Kanto Denka Kogyo Co., Ltd., we established technology that recycles lithiumfrom slag containing lithium into high-purity compounds in 2022, successfully developing a new process for horizontal recycling ofcopper, nickel, cobalt, and lithium.
In evaluations of battery performance by battery user Primearth EV Energy Co., Ltd., it was demonstrated on the product levelthat the performance of batteries using LIB cathode materials manufactured through this process is equal to that of batteries manufactured from conventional raw materials, primarily derived from natural resources.
We are currently studying the commercialization of battery recycling with the aim of establishing a system for processing 10,000
tons per year during the term of the 2024 3-Year Business Plan (FY2025–2027). In parallel with this, we are also working to develop
technology for reducing CO2 emissions from the perspective of carbon neutrality. If this new process makes it possible to reuse
valuable metals as resources on a commercial basis, it can be expected to make a further contribution to resource recycling tocombat global resource depletion.
Looking ahead, we will continue to actively work on “battery to battery” horizontal recycling and will contribute to the formationof a sustainable circular economy and the strengthening of resource recycling to combat global resource depletion.

Percentage of Recycled Input Raw Materials Used

GRI 301-2

The SMM Group procures copper scrap and precious metal
scrap from the market, recovers zinc from electric arc furnace
dust, and recovers valuable and precious metals from used
printed circuit boards and other sources. In FY2022, our percentage of recycled input raw materials used was approximately 236 kt, accounting for 2.21% (2.38% in FY2021) of
input raw materials, a slight drop from the previous fiscal year.
Production volume of electrolytic copper from recycled raw
materials was approximately 93 kt, accounting for 20.9%(23.1% in FY2021) of production volume, a slight drop fromthe previous fiscal year.
Percentage of Recycled Input Raw Materials Used

P.70

 Percentage of Recycled Input Raw Materials Used
(kt)
260

(%)
3.5

249
239

240

220

2.22

227

229

2.08

2.13

236

2.38
2.21

200

3.0

2.5

2.0

0
(FY)

2018

2019

2020

2021

2022

0

 Recycled materials (left axis)  
Percentage of recycled input raw materials used (right axis)* Percentage of recycled input raw materials used: Total raw materials used ÷ recycledmaterials x 100

Slag as a Recycled Material
Copper slag is a by-product produced during smelting at the Toyo Smelter & Refinery, which manufactures electrolytic copper. The
main use for copper slag (70% of the total volume) is cement production for Japan and overseas. With an iron content of about
40%, copper slag is widely used as a source of iron for cement.
The ferronickel slag at Hyuga Smelting Co., Ltd., which manufactures ferronickel used as a raw material for stainless steel, is mainly
used at steel blast furnaces. With a magnesia content of about 30%, ferronickel slag is used as a source of magnesia for blast furnace
flux.
Manufacturing process

Slag produced

Main use

Copper slag
Toyo Smelter & Refinery Recycling Flow

Dryer

Pre-Processing
Manufacturers

Used Secondary
Batteries* Pre-processing: Heat treatment to eliminate toxins,crushing, and selection

SMM’s
SecondaryBattery
Recycling
Process
Battery
Manufacturers

Kanto Denka Kogyo’s
High-Purity Lithium
Recycling Process

Pyrometallurgical
Smelting Process

Slag

Hydrometallurgical
Refining Process

CopperBattery Materials
Manufacturing Process

Motors, Wire harnesses, etc.

Electrolytic Solution
Manufacturers

SUMITOMO METAL MINING CO., LTD.

Hydrometallurgical
Refining Process

Nickel-Cobalt Mixture

Cathode materials forlithium-ion secondary
batteries

38

Lithium

Sustainability Report 2023

High-Purity
Lithium Compounds

Slag cleaning
furnace

975 ktRaw material for cement
Fine concrete aggregate

Ferronickel slag

(pre-processed*)

Intermediates frombattery manufacturing

Flash furnace

Hyuga Smelting Co., Ltd.
Dryer

Kiln

For steel blast furnaces
Electric
furnace

424 ktFor harbor and civilengineering construction
Fine concrete aggregate

Precious Metal Recovery: Flow Diagram
Discarded household appliances and discarded electronic parts collected nationwide, and E-scrap containing high concentrationsof gold, silver, copper, palladium, and other valuable metals generated in the manufacturing of these appliances and parts, provide
SMM with raw materials for the recovery and recycling of precious metals (gold, silver, platinum, etc.).
Receipt of scraps containing precious metals
After sorting the collected raw materials into parts that
contain precious metals and those that do not, the SMM
Pyrometallurgical process
Hydrometallurgical process
Group company Ohkuchi Electronics Co., Ltd. uses the pyrometallurgical or hydrometallurgical process, depending on
Dissolved by acid, stripping of
precious metals by cyanide
the composition and other aspects of the parts, to condense
Calcining
Melting
Reduction
the materials before transporting them to the Toyo Smelter &Refinery.
Calcined materials
SpongeSemi-refined
Precious metal
The Toyo Smelter & Refinery smelts and refines those concontaining(reduced gold,
gold
precipitate
reduced platinum)
precious metals
densed raw materials along with other copper and precious
metal raw materials, and then recycles them into high-grade
Toyo Smelter & Refinery
precious metals.
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Sustainability Report 2023

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Environment

 Environment

Environmental Management

Sumitomo Metal Mining Group Environmental Targets for 2023

GRI 3-3



FY2023 Policy

Use an environmental management system (EMS) to strengthen environmental management,
address global environmental issues, and preserve biodiversity.

FY2023 Targets

1. Eliminate environmental accidents and compliance breaches
2. Reduce greenhouse gas (GHG) emissions
3. Promote preservation of biodiversity* Carbon Neutrality Committee

GRI 3-3

Deploy Environmental Targets and Use an Environmental Management System
Based on our Group’s environmental vision and progress toward it, the Safety & Environment Control Department formulates a proposal for the Group’s environmental targets (policies, objectives, strategies), which are reviewed and approved by the president. At
each business site, annual targets and plans are developed based on the Group’s environmental targets, taking into account theunique risks of each site, and are carried out through the EMS based on ISO 14001 (JIS Q 14001). As of April 1, 2023, all our production sites have obtained third-party ISO 14001 certification.

The Environmental Preservation Subcommittee and the Safety & Environment Control Department
The Safety & Environment Control Department serves as the secretariat of the Environmental Preservation Subcommittee withrespect to significant environmental accidents and biodiversity which are material issues. The Department is the functional instructing department with respect to environmental preservation activities in general, promoting initiatives through the cooperation andcollaboration of various departments to realize the Vision. This includes the operations of the Environmental Preservation
Subcommittee, functional instructions to site managers based on legal revisions and other external information, various reports
and inspections, and alerts and inspection directives through the sharing information about environmental accidents and nearmiss cases within the Group.

The Carbon Neutrality Committee and the Technology Division
Regarding climate change, which is a material issue, the Technology Division serves as the secretariat and functional instruction
division for the Carbon Neutrality Committee,* driving activities through collaboration and cooperation with various departments
 Promotion Structure

Carbon Neutrality
Committee

Chair: Executive officer in charge of the Safety &Environment Control Department
Deputy Chair: Executive officer in charge of theTechnology Division
Members:
Department environment managers

Check progress
on KPIs

Individual Initiatives for Environmental Preservation
Inspections, Communications
The head of the department overseeing a business site conducts an annual inspection of the business site, including the businesssites of the Group companies it oversees. In addition, the General Manager of the Safety & Environment Control Department
inspects designated business sites, including those of Group companies, to ensure that proper environmental management practices are in place.
Further, the Safety & Environment Control Department conducts environmental communication activities to assess environmental issues at each business site by visiting designated sites, including those of Group companies. Findings from the inspection by
the General Manager of the Safety & Environment Control Department are reported to the heads of the business sites and thedepartment responsible, as well as the president of SMM. Upon sharing the identified issues, efforts are made to enhance environmental management levels at the respective business sites.

Environmental Management in the Besshi District
In the Besshi District (Niihama City, Ehime Prefecture, and its suburbs), where many of our Group’s manufacturing bases are located,the Besshi-Niihama District Division Safety & Environment Control Center plays a central role in enhancing environmental management standards. This involves offering guidance on environmental management initiatives to business sites including Group companies in the district. The Center also offers regular opportunities to exchange information, study sessions, and conducts mutual
patrolling to improve environmental practices.

In addition to providing e-learning as an educational tool for laws and regulations and environmental management, we offer training for EMS internal auditors, and environmental management education for newly appointed business site general managers, theenvironment managers, new employees, and mid-career hires to enhance environmental management levels.

President

Functional instructions

Conferences for environment managers are held in principle once per year and are attended by environment managers from all
business sites. In these meetings, we aim to enhance the capabilities of these managers through education and discussion on the
progress of environmental objectives, updates on legal amendments and compliance status, as well as environmental performanceand priority areas of focus.

Education

Sustainability Committee

Environmental Preservation
Subcommittee

P.23

Conference for Environment Managers

Promotion Structure

Chair: Executive officer in charge of carbon
neutrality
Vice Chair: Executive officer in charge of the Safety &Environment Control Department
Members

to achieve the Group’s Vision. It runs the Carbon Neutrality Committee, formulates the policy, targets, and plans to achieve carbon
neutrality and deliberates on material issues, collecting external information (from guidelines of affiliated organizations, international trends, regulatory revisions, etc.) and performance data, sharing case studies with other departments, and deliberates on andapproves the internal carbon pricing (ICP) system.

Safety & Environment
Control Division

Department in charge(business division, etc.)
Department environment
manager

Environmental Preservation Initiatives at Business Sites
Through EMS, each business site conducts activities on a regular basis to improve the level of environmental management throughthe PDCA cycle. Such activities include evaluations of the effect on the environment of the business’ activities (environmental risk
assessment), formulation and execution of environmental management, preventive environmental preservation activities, tracking
through internal and third-party audits, management reviews, and emergency response training in case of accidents.

Personnel in charge of promoting
carbon neutrality

Environmental Preservation Investment as a Part of Facility Investments

P.72

Business sites (plants, mines, Group companies, etc.)
Conference for environment managers
Business site division(s)(department(s), section(s), etc.)
Business site environment
manager(s)40

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Environment

 Environment

Climate Change

Vision for 2030

Metrics and Targets
We have established the goal of achieving carbon neutrality by 2050. In order to achieve this goal, we have set GHG emissions targets for 2030 and we are advancing activities for meeting these targets. We have also set and are pursuing targets for contribution
to reducing GHG emissions at a society-wide level through the supply of secondary battery cathode materials for use in automobiles and near-infrared absorbing materials produced by the Group.

A company that actively undertakes climate change
countermeasures, by reducing emissions and stably
supplying products contributing to a low-carbon society,a future with zero greenhouse gases (GHGs)
Approach and PolicyMedium-Term Targets and Progress

To achieve our Vision for 2030, we are managing progress for each KPI and have made achievement criteria and action plans for up to 2030.
GRI 3-3• GHG emissions were 2,820
kt-CO2e (an increase of 5% compared to FY2013)• Adopted an internal carbon pricing (ICP) system and promoted
investment in reducing GHG
emissions• Purchased substantial renewableenergy• Advanced development of innovative smelting and refining
processes

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

• Implement measures for the 2021 3-YearBusiness Plan period and for each year withregard to reducing GHG emissions• Plan and expand various measures andconfirm the suitability of KPI targets forrealizing carbon neutrality by 2050

• Implement the roadmap for achieving KPIs
• Verify and revise roadmap and various
associated measures• Reduced GHG emissions intensity
by approximately 1% comparedto FY2013• Advanced investment in reducing
GHG emissions using the ICP
system• Purchased substantial renewableenergy• Reduce energy intensity by atleast 1% through stable operations, production increases, andother methods• Advance investment in reducing
GHG emissions using the ICP
system• Purchase substantial renewableenergy• Reduce GHG emissions intensity towardachieving the KPI target• Achieve the KPI target by reducing GHG
emissions intensity in line with the targetsof each 3-Year Business Plan

• Implement the measures for the 2021
3-Year Business Plan period and for eachyear with regard to reducing GHG
emissions• Plan and expand various measures, andconfirm the suitability of KPI targets forachieving reductions in GHG emissions
intensity• Implement measures for each 3-YearBusiness Plan period and for each year toachieve KPI targets• Verify and revise various measures

KPI 	Reduce GHG emissions
3. Expand contribution of GHG reduction by products contributing to a low-carbon society: 600 kt-CO2 or more
• Avoided emissions of 540 kt-CO2
through the supply of products
contributing to a low-carbon society, including a near-infraredabsorbing material for automobiles (CWO®) and battery
materials• Increase production of battery
materials and CWO®, and advance
product development• Increase avoided emissions by products
contributing to a low-carbon society• Increase number of products contributing
to a low-carbon society and revise KPItargets• Increase avoided emissions by products
contributing to a low-carbon society andachieve KPI targets during each 3-YearBusiness Plan period

Action Plan

The climate change risks identified through scenario analysis are monitored and measured by the Carbon Neutrality Committee,
which also takes corrective measures and revises strategies when necessary, and are reviewed by the Sustainability Committee.
Climate change risk is also managed by the Group’s risk management system and Risk Management Working Group, based on consideration of the impact on other individual risks such as occupational accidents, environmental pollution, quality failures, and legal
violations.

• Reduce GHG emissions in line with targets
and achieve KPI targets during each 3-YearBusiness Plan period

Achievement
Criteria

Risk Management• Maintain GHG emissions below the level of
FY2013• Develop a roadmap for realizing carbon
neutrality by 2050

KPI 	Reduce GHG emissions
2. Reduce GHG emissions intensity by at least 26% compared to FY2013

Action Plan

Short-, medium-, and long-term climate change risks and opportunities that could have a major impact on the Group’s business,strategy, or finances are identified based on analysis of climate change scenarios that anticipate various changes in the external
environment, including regulatory changes, technological progress, market changes, and natural disasters. We then consider the
impact of each of these on business and strategy in each area, such as products and services, R&D investment, operations, and GHG
emission reduction and response measures. Based on the results of this analysis, we formulate Group strategies for each climatechange risk and opportunity, and these are reflected in 3-Year Business Plans. These strategies are also discussed by the Carbon
Neutrality Committee and reviewed by the Sustainability Committee.

• R educe energy intensity by atleast 1% by using highly efficientfacilities, improving processes, andother methods•A dvance investment in reducing
GHG emissions (fuels transition,
introduction of renewable energy,etc.) using the ICP system• P urchase substantial renewableenergy•C ontinue development of innovative smelting and refining
processes•U pdate climate change scenario
analyses•D evelop a roadmap for realizing
carbon neutrality by 2050

Achievement
Criteria

Strategy

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	Reduce GHG emissions
1. C ontinuing to grow our business while maintaining GHG emissions below the level of FY2013. Accelerating actions to achieve net zero
GHG emissions by 2050 or sooner

Governance
The Group’s material issues related to sustainability, including climate change, are identified along with KPIs through discussion bysenior management members and confirmed through a resolution of the Board of Directors. Climate risks, opportunities, and strategy pertaining to the Group are also reflected in 3-Year Business Plans, annual budgets, KPI targets, and other areas, and are confirmed through a resolution of the Board of Directors. The Carbon Neutrality Committee meets regularly to deliberate on andmanage climate change-related matters pertaining to the Group. Initiatives and performance in regard to KPI targets are thenreviewed by the Sustainability Committee and an overview is reported to the Board of Directors.

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

Action Plan

Management Structure and Approach regarding the Material Issue of Climate Change(based on the TCFD recommendations)
GRI 3-3

FY2022 Results

Achievement Criteria

As a group that produces a significant amount of greenhouse gas (GHG) emissions through our businessactivities, we are committed to contributing to mitigating climate change by reducing global GHG emissions. We will do this by reducing absolute emissions and emissions intensity through operational
improvements and technological innovation, as well as expanding our business through the developmentof products that contribute to a low-carbon society, such as battery materials and near-infrared absorbing
materials.

42

GRI 3-3• Implement the measures for the 2021
3-Year Business Plan period and for eachyear with regard to increasing the numberof products contributing to a low-carbon
society• Conduct investigation and review toincrease the number of products contributing to a low-carbon society (R&D and market development), plan measures andconfirm suitability of KPI targets• Implement measures for each 3-YearBusiness Plan and for each year to achieve
KPI targets• Conduct investigation and review toincrease the number of products contributing to a low-carbon society (R&D and market development), and verify and revise
measures

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Environment

 Environment

Climate Change

Action for TCFD
In February 2020, we became a supporter of the Task Force on Climate-related Financial Disclosures (TCFD). We have not only listed
climate change as a material issue in Vision for 2030, which was formulated and released in March 2020, and strengthened efforts toachieve the vision of “a company that actively undertakes climate change countermeasures, by reducing emissions and stably supplying products contributing to a low-carbon society, a future with zero greenhouse gases (GHGs),” but also indicated that we will

move forward with disclosure of related information. The TCFD recommends that the disclosure of climate change-related risks andopportunities should be organized according to four core elements of corporate management and operations (governance, strategy, risk management, and metrics & targets), and we are disclosing information in line with these recommendations.
The Group responds to the CDP Climate Change Questionnaire annually regarding its GHG management.

Climate Change Scenario Analysis

GRI 201-2

We considered two scenarios for 2050.
1.5˚C scenario  A scenario in which ongoing efforts are made to keep the rise in average temperatures to within 1.5˚C. The IEA’s WEO 2019
Sustainable Development Scenario (SDS),1 Beyond 2°C Scenario (B2DS),2 and the IPCC’s special report “Global Warming of
1.5˚C”3 were information sources for this scenario.
4˚C scenario

Scenario

1.5˚C A scenario in which no countermeasures are taken, and temperatures are allowed to continue rising. Information sources
included the IEA’s WEO 2018 New Policies Scenario and the IPCC’s RCP4 8.5 Scenario.
Category

DriverClimate change
policyCarbon pricing (carbon taxes, emissions
trading, etc.)• Overall monetary amounts have risen(depending on nation or region)

Climate change
policyTightening of vehicle regulations, policy to promote LEVs

• Fuel consumption regulations have been tightened and restrictions on movement introduced• P olicy is supportive of EVs and LEVs
• Internal combustion-based vehicles havebeen replaced by LEVs

Society andinfrastructure

Progress of digitaltransformation
related to vehicles,changes in values• S elf-driving vehicles, MaaS5, and car-sharing
are common• Fewer households own cars

Technology

Development ofhydrogen technology, fuel cells• Fuel cell vehicles (FCV) are common• EVs and plug-in hybrid EVs (PHEV) arecommonClimate change
policyShift to electricalenergy• Electricity occupies a higher proportion of
final energy consumption

Technology

Technological shift
in automobile storage batteries

Society andinfrastructure

4˚C

Temperaturesand rainfall

Anticipated situation (2050)

Impact on business

Increased tax burden, etc.

• There has been a shift in the market share ofautomobile storage batteries

Increases in R&D costs and investment in low-carbon facilities
and equipment• Increase in sales due to growing demand for batteries and nickel
accompanying the spread of EVs• Increase in sales of nickel oxide powder and lithium-ion batteries accompanying the development of a hydrogen society andthe spread of FCVs
• Increase in sales of other products contributing to a low-carbon
society• Increase in demand for copper accompanying the strengthening ofelectrical grids (although there is competition from aluminum, etc.)• Rise in the proportion of nickel used in batteries and increased
sales of nickel accompanying efforts to move away from cobalt• Spread of solid state batteries that leverage SMM technology as
next-generation batteries• Spread of iron and manganese-based batteries accompanying
efforts to move away from cobalt• Spread of new batteries that do not leverage SMM technology
as next-generation batteries

Interest in matterssuch as sustainableprocurement,
environmental footprint, and the social
impact ofbusinesses• There is greater awareness regarding
sustainability• ESG investment is mainstream• There are more possible applications for alternative materials and recycled metals• Limits on raw materials sourcing, increase in materials and manufacturing costs, greater advantages due to owning our own
mines• Expansion of the automobile secondary battery recycling
business• Impact of ESG investment on financing• Reputational risk if SMM’s efforts are evaluated as insufficient

Rises in averagetemperature, sea
surface temperature,and sea levels• Sea levels have risen• Storm surges are more frequent

Decline in port functionality, greater risk of storm surges, possibility of facility-based countermeasures needing to be taken atsome coastal business sites•H eavy rains and typhoons are more frequent• Increased risk of flooding and water shortages depending on region

Increase in risk of flooding or water shortages at business sites incertain regions, possibility of facility-based countermeasuresneeding to be taken
Decline in operations at key suppliers, decline in plant operations
due to interruptions to procurement and shipping routes
Possibility of facility-based countermeasures needing to be taken
due to the increased risk of damage to tailing dams

Increase in abnormal climate events,
such as heat waves,
flooding, and water
shortages

1. A scenario published by the International Energy Agency (IEA), and adopted in World Energy Outlook (WEO) 2019, a report that presents the outlook for energy supply and demand
and technological developments, and analyzes the path that should be followed to fully achieve the goals set forth in the Paris Accords
2. A scenario in “Energy Technology Perspectives 2017” (ETP 2017) published by the IEA
3. A report published by the Intergovernmental Panel on Climate Change (IPCC)
4. Representative Concentration Pathways (RCP)

Risk and opportunity(medium- to long-term)
Risk

SMM Group approach: Initiatives for realizing Vision for 2030

• Climate Change: Reduce GHG emissions

Large

Risk

Short- to long-term, large

P.42-50• Climate Change: Reduce GHG emissions
P.42-50• Effective Use of Non-Ferrous Metal Resources
P.32-39
Improve productivity by introducing new technology, Advance nickel ore projects and improve productivity

Opportunity

Large• Climate Change: Reduce GHG emissions
P.42-50• Effective Use of Non-Ferrous Metal Resources
P.32-39
Advance nickel ore projects and improve productivity, Develop technology to create value from unused non-ferrous metal resources,
Leverage our strengths to create new products and new businesses that contribute to society, Hold raw materials in-house for favorable
and stable procurement, Expand sales of low-cost battery cathode materials through favorable, stable procurement of our own nickel raw
materials

Opportunity

Large• Effective Use of Non-Ferrous Metal Resources
P.32-39
Advance copper mine projects, Acquire new superior copper and gold resources

Opportunity

MediumRisk

MediumOpportunity

Medium• Climate Change: Reduce GHG emissions
P.42-50• Effective Use of Non-Ferrous Metal Resources
P.32-39
Advance nickel ore projects and improve productivity, Develop technology to create value from unused non-ferrous metal resources,
Leverage our strengths to create new products and new businesses that contribute to society, Hold raw materials in-house for favorable
and stable procurement, Expand sales of low-cost battery cathode materials through favorable, stable procurement of our own nickel raw
materials• Effective Use of Non-Ferrous Metal Resources
P.32-39
Advance copper mine projects, Acquire new superior copper and gold resources, Advance nickel ore projects and improve productivity, Hold raw
materials in-house for favorable and stable procurement, Demonstrate and commercialize automobile secondary battery recycling technology• Human Rights in the Supply Chain:
P.120-123
Promote sustainable procurement, particularly responsible mineral sourcing• Rights of Indigenous Peoples:
P.116-119
Understand indigenous peoples and their traditions and culture, Support initiatives that lead to respect for the traditions and cultures ofindigenous peoples

Risk

Medium to large

Risk

Large

• Significant Environmental Accidents and Biodiversity: Zero significant environmental accidents

P.52-63

Risk

Large

• Significant Environmental Accidents and Biodiversity: Zero significant environmental accidents

P.52-63

Risk

Large

• Significant Environmental Accidents and Biodiversity:
P.52-63
Zero significant environmental accidents, Reduce emissions of hazardous substances

Risk

Large

• Significant Environmental Accidents: Zero significant environmental accidents

P.56-57, P.64-68

5. Mobility as a Service (MaaS): a service that optimally combines multiple transportation services (buses, trains, cabs, airplanes, etc.) and performs search, reservation, payment, etc. all at once

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Environment

 Environment

Climate Change

GHG Emissions (Scope 1 and 2) 

GRI 305-1/305-2/305-5

Group GHG emissions for FY2022 were 2,823 kt-CO2e due to increases in production volumes, while direct GHG emissions reductions due to energy saving and other activities in FY2022 amounted to approximately 6 kt-CO2e. Additionally, the solar power plant
operated by SMM in Kashima, Ibaraki Prefecture helped to reduce emissions by approximately 1.5 kt-CO2e in FY2022.
Details regarding Scope 3 GHG emissions are described on p. 50.
Scope 1: Direct GHG emissions generated by a business (due to fuel consumption, industrial processes, etc.)
Scope 2: Indirect GHG emissions generated through the use of electricity, heat, and steam supplied by other companies
Scope 3: Indirect GHG emissions not covered by Scopes 1 or 2 (emissions from other companies with a connection to the business’
activities)

 Breakdown of the SMM Group’s GHG Emissions (FY2022)(kt-CO2e)

Japan
484
854
1,339

Scope 11
Scope 22
Total

Overseas
1,480
4
1,484

Energy and GHG Emissions Intensity Indices* (Scope: Smelting & Refining Business in Japan) In FY2022, the energy intensity of the Smelting & Refining Business inJapan improved by approximately 5% year on year. This was due to
production increases.
SMM is a member of the Japan Mining Industry Association (JMIA),
an organization of non-ferrous mining, smelting and refining companies, and we are participating in the Carbon Neutrality Action Planbeing led by the Japan Business Federation (Keidanren).
We will continue to proactively engage in thorough energy management, the promotion of energy-saving activities, the introductionof renewable energy, the use of unutilized heat, and other endeavors
with the aim of reducing energy intensity by an average of at least
1% per year and further lowering CO2 emissions over the medium tolong term.
* Energy and GHG emissions intensity indices: the amount of energy consumed and GHGs emitted during the production of 1 ton of product (In the graph on the right, FY1990 is the baseyear with a value of 1)

Total
1,965
858
2,823

Energy and GHG emissions intensity indices

GRI 302-3/305-4/305-5

1.1

1.0

1.00
1.00

0.9

0.8

0.70

0.7

0.66
0.65

0.6

0.5
(FY)

1990

2018

Energy intensity index  

0.65

0.65

0.63

0.64

2020

2021

0.67

2019

0.62
0.60
2022

GHG emissions intensity index

P.70

SMM Group’s Approach to Reducing GHG Emissions GHG Emissions (Scope 1 and 2)(kt-CO2e)
4,000

3,531

3,500
3,000

3,227
2,802

2,698

2,820

2,809

2,807

2,760

2,647

2,823

If we continue with our current Group business model (BAU*), then Scopes 1–3 GHG emission volumes are predicted to rise inaccordance with business growth. We will aim to reduce emissions volumes by implementing in-house measures for Scope 1 and 2
emissions, such as energy transition, and by cooperating with suppliers for Scope 3 emissions. Furthermore, we will actively contribute to reducing GHG emissions at a society-wide level through the supply of products contributing to a low-caron society produced by the Group, including secondary battery cathode materials for automobiles and near-infrared absorbing materials.
*BAU: business as usual

2,500
2,000
1,500

 Visualization of GHG Emissions Reductions Visualization of Contribution to GHG Emissions
Reductions

1,000
500
0
(FY)

Increase due to business growth

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Energy saving and energy transition, use of renewable energy,
development and use of innovative technologies, etc.

 Smelting & Refining Business in Japan    Mineral Resources Business in Japan    Battery Materials Business and Advanced Materials Business   Other businesses in Japan    Smelting & Refining Business overseas    Mineral Resources Business overseas    Materials Business overseas
1. Both Japan and overseas figures are calculated based on the GHG Protocol, and emission factors are based on the Japanese law “Act on Promotion of Global WarmingCountermeasures”
2. GHG emissions factors for electric power purchased in Japan are the adjusted emissions factors of electric suppliers
For China and Taiwan, the latest emission factors published by the governments of those countries are used
For Vietnam, the default emission factor compiled by The Climate Registry (TCR) (2011 national emission factors published by the International Energy Agency (IEA) in 2013) is used

GHG Emissions

Increased production andsupply of products contributing
to GHG emissions reductions at
a society-wide level
Development and launch of
products that are effective for
reducing GHG emissions

P.70
CarbonneutralCurrent

BAU

Medium termLong term

Current

Medium termLong term Scope 1    Scope 2    Scope 3

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Environment

 Environment

Climate Change

Main Climate Change Countermeasures

3 Realizing a Stable Supply of Non-Ferrous Metal Resources

We are working to counter the effects of climate change, primarily through the following four measures.

1 Reduction of GHG Emissions in the Production Process
We are working to reduce GHG emissions generated in the production process through a medium- to long-term approach outlined below.

Energy saving

Energy transition

E.g., Upgrade to highly efficientfacilities, improve production
processes, introduce AI and
IoTE.g., Transition to LNG, electricity,hydrogen, and biofuels

Utilizing external technologies, businesses,
and policies
E.g., New CO2 -free fuels such as synthetic
methane, hydrogen, and ammonia as
renewable energy sources
Carbon capture, utilization, and storage(CCUS) technology

Using Internal Carbon Pricing
The SMM Group implemented Internal Carbon Pricing (ICP), an action in which companies set an in-house carbon price to promote
capital investments for decarbonization and energy savings and consider GHG emission reductions as a capital investment effect.
Since introducing an ICP in September 2020, we have moved forward with decarbonization investments that make active use of
ICP at business sites. Specifically, in addition to energy-saving investments, such as introducing LED lighting and replacing to highly
efficient air conditioning equipment, we are actively taking on various challenges, including those related to solar power and a fueltransition from heavy oil to LNG, which previously could not be undertaken because of poor investment return. We plan on further
expanding ICP measures.
Anticipated CO2 emissions reduction

Investments subject to ICP

1

The main mineral resources for renewable energy, which is a major trend in realizing a carbon neutral society, and used in the electrification of EVs and other vehicles are shown in the table below. We provide many of these materials. We are also developing technologies for the efficient recovery of lithium from salt lake water and studying its industrialization.
The exact metal usage per vehicle increases as electrification advances, with copper requiring 3.6 times the weight equivalent of agasoline-powered vehicle. We believe that meeting the growing demand for such materials is an important role that our Groupshould fulfill.

System and Fundamental Technology

Renewable energy
sector33

76,755

Batteries, motors,
etc.

Automobile sector

Copper, aluminum, rare earths

Solar power generation

Indium, gallium, selenium, copper

Geothermal power generation

Titanium

Large-capacity storage batteries

Vanadium, lithium, cobalt, manganese, copper

Lithium-ion batteries

Lithium, cobalt, nickel, manganese, copper

Solid-state batteries

Lithium, nickel, manganese, copper

High-performance magnets

Rare earths

Fuel cells (electrodes, catalysts)

Platinum, nickel, rare earths (scandium)

Hydrogen tanks

Titanium, niobium, zinc, magnesium, vanadium* Materials in a blue font are produced by the Group Metal Used per Vehicle (kg)Co

0
Cobalt 0.2 3.5

Ni0
Nickel 0.5

Li0Lithium 0.12.2

Cu

Copper(t-CO2/year)2

1. Covers investments for which the application of the system was decided between 2021 andMarch 2023
2. As this includes investments that will be implemented from FY2024 onward, the period in which
effects manifest and the period in which application was decided are not concurrent

Power generation
and batteries Internal combustion engine vehicle (ICE) Hybrid electric vehicle (HEV) Plug-in hybrid electric vehicle (PHEV) Electric vehicle (EV)

11

8.7

27.5

7.2

 ICP System Application Examples
Toyo Smelter & RefineryTransition from heavy oil to LNG as fuel for some heat supply equipment (to be completed in stages from FY2023 to FY2025)

Niihama Nickel RefineryTransition from heavy oil to LNG as boiler fuel (to be completed in FY2023)

Harima RefineryTransition to electricity generated from renewable sources for 100% of purchased electricity (underway since FY2022)

Hishikari Mine

Transition to electricity generated from renewable sources for 100% of purchased electricity (underway since 2023)

CBNC

Transition to co-firing by replacing some fuel coal with woody biomass (currently being trialed)

Main Metal Resources Required*Wind power generation

23

0

10

20

40

30

40

60
50

60

3.6 times the amount required by ICE
83
70

80

90

Source: The Agency for Natural Resources and Energy’s Mineral Resources Policy for Achieving Carbon Neutrality in 2050

4 Establishing Innovative Technologies that Support Decarbonization
2 Development and Supply of Products that Contribute to a Low-Carbon Society
Products or materials that contribute to reducing GHG emissions at a society-wide level through their production and supply by
our Group are positioned as low-carbon products, and their development and supply to the market are actively promoted. In
FY2022, they contributed to reducing GHG emissions by 540 kt-CO2e.** Of our products, the combined value that cathode materials for automobile batteries and near-infrared absorbing material (CWO® (only for automobile glass)) from objectively calculated technical data provided by the public or by customers

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In achieving carbon neutrality for our Group, it is essential to develop innovative technologies that lead to a dramatic reduction in
GHG emissions within smelting and refining operations, which account for 90% of our total emissions, and to apply these technologies to our production processes. In copper smelting and refining, we are developing hydrogen reduction technology to reducecoal consumption, and for nickel smelting and refining, we are developing a next-generation process and CO2 fixation technology.
We have our eye on the future as we work in collaboration with multiple universities and companies to proactively pursue
next-generation technology.

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Environment

 Environment

Climate Change

GHG Emissions in the Value Chain (Scope 3)
Scope 3 GHG emissions generated in FY2022 amounted to
4,530 kt-CO2e. The percentage of Category 1 emissions out of
overall Scope 3 emissions was high, so we will communicate
with business partners to make the calculation of Scope 3
emissions volumes more accurate and we will set reduction
targets.

GRI 305-3

Scope 1

Scope 32
Indirect emissions not covered by Scopes 1 and 2

Direct emissions

26.7%

61.6%

(1,965 kt-CO2e)(4,530 kt-CO2e)Overall
GHG emissions1
Emissions related topurchased goods
and services

7,353 kt-CO2e
Scope 2(Category 1)

Indirect emissions

50.8%

11.7%

(858 kt-CO2e)
1. Scope includes the entire SMM Group (however, data for Category 5 to 7 only covers Group companies in Japan)
2. Excludes Categories 8–12, 14, and 15

 Scope 3 Emissions and Percentage of Overall Emissions
EmissionsCategory(kt-CO2e)

Total Scope 3 Emissions

Percentage

Calculation Method

4,530

61.6%

1. Purchased goods and services

3,737

50.8%

Σ (weight of key raw materials x emissions intensity)1

2. Capital goods

518

7.0%

Σ (amount of capital expenditures x emissions intensity x 1.05)2
Capital expenditures include construction in progress, used equipment,
and intragroup transactions

3. F uel- and energy-related activities notincluded in Scope 1 or Scope 2

239

3.3%

Σ (electricity and fuel consumptions x emissions intensity [electricity,2
fuel1])

4. U
 pstream transportation and distribution

26

0.3%

Emissions from domestic transportation are calculated based on theJapanese laws the “Act on Rationalizing Energy Use” and “Act on
Promotion of Global Warming Countermeasures.”

5. Waste generated in operations

7

0.1%

Σ (amount of waste by type (major sites in Japan) x emissions intensity by
waste type)2

6. Business travel

1

0.0%

Σ (number of employees (major sites in Japan) x emissions intensity)1

7. Employee commuting

3

0.0%

Σ (number of employees (major sites in Japan) x number of business days x
emissions intensity)2

8. Upstream leased assets

Not applicable3

9. Downstream transportation anddistribution

Not applicable4

10. Processing of sold products

Not applicable4

11. Use of sold products

Not applicable4

12. End-of-life treatment of sold products

Not applicable4
0.0%

Σ (electricity and gas consumption by tenants of the Head Office buildingx emissions intensity)5

13. Downstream leased assets

0.2

14. Franchises

Not applicable6

15. Investments

Not applicable7

Scope includes the entire SMM Group (however, data for Category 5 to 7 only covers Group companies in Japan)
1. For emissions intensity, we used values from the National Institute of Advanced Industrial Science and Technology’s IDEA Ver. 3.3
2. For emissions intensity, we used values from the Database for Calculating GHG Emissions of the Supply Chain, Ver. 3.3, prepared by the Ministry of Environment and the Ministry of
Economy, Trade and Industry in Japan
3. Not applicable as it is included in calculations of Scope 1 and 2 emissions
4. This category is not applicable because it is difficult to calculate emissions since our products are mainly non-ferrous metals and highly advanced materials, which have diverse
applications after sales destinations, and each application has different GHG emission characteristics
5. Emissions intensity was calculated based on the list of calculation methods and emission factors of the Ministry of the Environment’s Greenhouse Gas Emissions Calculations
Reporting and Publication System
6. Not applicable as we do not operate any franchise businesses
7. Not applicable as it is the disclosure of information on investments for profit

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Environment

 Environment

Significant Environmental Accidents / Biodiversity

Vision for 2030

FY2022 Results

Achievement
Criteria• Maintain zero significant environmental accidents• Maintain zero significant violations• Eliminate significant environmental
compliance violations• Maintain zero significant environmental accidents• Maintain zero significant violations• Eliminate significant environmental
compliance violations

Action Plan

• Establish targets to strengthen ourability to address environmental conservation using our RMS and EMS at allsites, and implement PCDA cycles
while continuing initiatives in line with
our plan• Strengthen management based onrisk registration / management as significant environmental aspects- Strengthen communication with sitemanagers, including patrols- Provide education and support for
improving competence of environmental staff- Invest in improving treatment ofwastewater and exhaust gas• Strengthen management based onrisk registration / management as significant environmental aspects- Respond to tighter laws andregulations• Invest in improving treatment ofwastewater and exhaust gas and promote investment in remote, automation and other cutting-edge
technology (DX)• Reduce transfers and emissions of hazardous substances through continuous
improvements• Implement initiatives on water anddisclose information• Promote improvements and enhancements based on risks• Analyze PRTR data and provide feedback
to sites and support based on results• Consider and formulate water policy• Promote improvements and enhancements based on risks• Continue to promote action based on
PRTR data improvement and results• Promote water policy and initiatives• Continued regular reforestation
CBNC: 38 ha
THPAL: 59 ha• Identified trends in Japan and overseas
on disclosure of biodiversity
information• Continue regular reforestation• Consider formulation of biodiversity
policyAction Plan

FY2023 Plan

Final Year of 2027 3-Year Business
Plan (FY2030)• Reduce transfers and emissions of hazardous substances through continuous
improvements• Publish water policy and implement
initiatives

KPI 	2. Reduce emissions of hazardous substances (year-on-year)
2) Promote various environmental preservation and biodiversity preservation activities, such as regular reforestation

GRI 3-3/303-1

KPI 	1. Zero significant environmental accidents
1) Promote improvements through the use of risk management and environmental management systems• No significant environmental accidents
or violations occurred due to implementation of management improvements using a risk management
system (RMS) and an environmental
management system (EMS)• Systematically continue to address targets for emissions of hazardous substances at each site
• Establish the water policy (June 1,
2023)

Achievement
Criteria

P.40

To achieve our Vision for 2030, we are managing progress for each KPI and have made achievement criteria and action plans for up to 2030.
FY2022 Results• Implement risk assessment using the
WWF Water Risk Filter and countermeasures for each site based on the results• Link with activities of the Carbon
Neutrality Committee

Action Plan

• Further improved emissions of hazardous substances at each site
• Considered a draft water policy for the
Sumitomo Metal Mining Group

Matters concerning significant environmental accidents as well as biodiversity are primarily advanced by the Environmental
Preservation Subcommittee* and the Safety & Environment Control Department.

Final Year of 2021 3-Year Business
Plan (FY2024)• Implement risk assessment using the
WWF Water Risk Filter and countermeasures for each site based on the results• Link with activities of the Carbon
Neutrality Committee

KPI 	2. Reduce emissions of hazardous substances (year-on-year)
1) Optimize water use; reduce emissions of hazardous substances to the atmosphere and water

GRI 3-3

Medium-Term Targets and Progress• Based on results of climate change scenario analysis review, identify risks, consider and implement countermeasures• Establish standards and guidelines forresponding to increasingly severe rainstorms and promote improvements
and enhancements• Revise BCPs

Achievement
Criteria

Promotion Structure• Based on results of climate change scenario analysis review, identify risks, consider and implement countermeasures• Establish standards and guidelines forresponding to increasingly severe rainstorms and promote improvements
and enhancements• Revise BCPs

Action Plan

Significant environmental accidents have major impacts on the environment and communities, and canresult in loss of the trust that is a prerequisite for business continuity. In particular, the SMM Group’s business activities have the potential to cause environmental pollution through such means as the leakage ofmining waste and chemicals. By improving our facilities and management to address such risks as well as
intensifying natural disasters, we are working to prevent significant environmental accidents and mitigate
impacts in the event of occurrence.
We are also working to sustainably utilize and manage water resources and to reduce our emissions ofharmful substances into the atmosphere and water, and are developing environmental conservation activities that place importance on biodiversity.
In FY2022, there were no significant environmental accidents which would have a serious impact on theenvironment or society.

* Environmental Preservation Subcommittee• Continue to implement risk assessment using the WWF Water Risk Filter• Continue to identify risks at each site,and consider countermeasures

Achievement Criteria• Implemented risk assessment using
the World Wide Fund for Nature(WWF) Water Risk Filter• Identified risks at each site, and considered countermeasures

GRI 3-3

Final Year of 2027 3-Year Business
Plan (FY2030)

KPI 	1. Zero significant environmental accidents
2) Reinforce and improve equipment and infrastructure to address increases in sources of natural hazard

A company that values water resources and biodiversity, andprotects the richness of the sea and land
Approach and Policy

Final Year of 2021 3-Year Business
Plan (FY2024)

FY2023 Plan

• Continue regular reforestation• Formulate initiatives and policy onpreserving biodiversity• Continue and review regularreforestation• Continue to improve initiatives on preserving biodiversity• Promote reforestation by CBNC andTHPAL and continue communication
with mining companies through thetwo companies• Examine and analyze nature-relatedrisks and opportunities• Promote reforestation by CBNC andTHPAL and continue communication
with mining companies through thetwo companies• Continue to promote measures tocounter nature-related risks

Chemical Substance Management
Because chemicals are frequently handled in the SMM Group, we have established a chemical substance management system
within the environmental management system (EMS) at all business sites under divisional jurisdiction. For example, when a business site intends to handle a new chemical, it conducts a preliminary study that covers hazard statements, laws and regulations,and other applicable information, and deliberates in a meeting at the business site before deciding whether to adopt the handlingof said chemical. In addition, the business divisions and Safety & Environment Control Department cooperate with requests for preliminary consultation and verification from the business site.
Further, we also provide information on safe handling for all chemicals transferred or provided to customers or other businesssites in the SMM Group using safety data sheets (SDS)1 which conform to the Globally Harmonized System of Classification andLabelling of Chemicals (GHS),2 regardless of whether or not we are legally obligated to do so.
When developing new materials, we strive to develop materials that customers can use safely and with peace of mind. We review
development themes taking into account the toxicity of contained substances, including as pertains to domestic and international
regulations for final products as well as the environmental impact of production processes.
Products for export to the EU are also subject to the RoHS Directive and the REACH Regulation,3 enacted with the aim of protecting human health and the environment, and we address these accordingly.
1. Safety data sheet (SDS): A document listing information on a chemical, including the chemical substance, the product name, the supplier, hazards, safety precautions and emergency procedures
2. The Globally Harmonized System of Classification and Labeling of Chemicals (GHS): A system for classifying chemicals based on the type and degree of hazards and toxicity they pose, chemical labeling, and safety data sheet provision in accordance with a set of internationally-agreed upon rules
3. REACH Regulation: The Regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals. An EU regulation concerning the registration, evaluation, approval, and limiting of chemical substances

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Environment

 Environment

Significant Environmental Accidents / Biodiversity

Sumitomo Metal Mining Group’s Water Policy

1 Context

6 Monitoring and Reporting

Sumitomo Metal Mining (“SMM”) Vision for 2030 has been formulated as a milestone for the realization of our longterm vision of Becoming the World Leader in the Non-Ferrous Metals Industry. In our “Vision for 2030”, we believe it
is important to be a company that protects oceans and land with consideration for water resources and biodiversity. The SMM Group requires large amounts of water in its production processes, mainly in its mining and metals
operations, and water is an indispensable resource for its business activities. At the same time, water is an essential
shared resource for local communities and the surrounding ecosystem. To achieve our vision, we set goals to optimize water use and reduce emissions of hazardous substances to water.
This Water Policy guides our commitment for sustainable use and management of water resources across all ouroperations.

We are committed to disclosing our water performance and progress towards our targets so that stakeholders canbe informed and actively involved in our sustainability journey.
 We will set and regularly review water management objectives and set context-based water targets.
 We will proactively monitor our water performance and collect water consumption data.
 We will publicly report on our water management performance, material risks and provide updates on progressagainst our targets using consistent industry metrics and recognized approaches.

Access to water is critical to the communities in where we operate. While we recognize and continue to focus on
the positive impacts that our management system can facilitate, the risks associated with broader social and economic water-related impacts in the region.

2 ScopeThis policy applies to the entirety of SMM’s business (SMM and its subsidiaries), unless any aspect of the Policy is not
permitted by local law or regulations.
3 Governance & Promotion framework
The Environmental Preservation Subcommittee, a subcommittee of the Sustainability Committee chaired by the
President, will report regularly to the Sustainability Committee, which is overseen by the Board of Directors, on thestatus of compliance with this policy and promote water-related initiatives.
4 Water Policy Principles
As an ICMM (International Council on Mining and Metals) member, we aligned this Policy with ICMM member’s
approach outlined in the ICMM position statement on water stewardship. SMM has adopted the following principles with respect to water issues and risk management.
 SMM will align its business strategy with identified risk and opportunities.
 SMM will monitor and report on our efforts and results.
 SMM will engage with key stakeholders.
5 Business Strategy & Operations
Water is essential to our business. It is vital we drive responsible water use across our operations, minimize our environmental impact on water resources and invest in projects and technology for water management.
 We will consider water impacts and integrate water management into our business strategy and operational
decisions.
 We will identify and proactively manage water related risk and opportunities including those associated withwater quality, water scarcity.
 We will support and implement water stewardship initiatives and projects that promote better water use, reduce
freshwater use, have effective catchment management and contribute to improved water security and sanitation.
We will ensure provision and access to clean and safe drinking water and sanitation facilities at all our sites.
 We will develop and invest in technology and innovation for effective water management.

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7 Engagement

Sustainability Report 2023

We recognize the importance of working with our stakeholders to promote effective water governance and stewardship. We will support collective action to improve water policies, regulations and address shared water challenges in communities and value chains.
 We will advocate for responsible water usage practices and increase water stewardship awareness with our key
stakeholders, including employees, suppliers and customers.
 We will educate all officers and employees of the Group on understanding this policy and water-related initiatives.
 We will engage with communities and stakeholders who may be affected by a site’s water use and wastewater
discharge to address shared water management issues.
 We will establish and maintain a grievance mechanism that is accessible to our stakeholders.
 We will engage with governments and local authorities in the areas in where we operate on water-related public
policy and regulation.
8 Review
This water policy will be reviewed periodically by the Chairman of the Environmental Preservation Subcommittee
and, if necessary, changes will be approved by the Board of Directors.
Akira Nozaki
President and Representative Director
June 1, 2023

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Environment

 Environment

Significant Environmental Accidents / Biodiversity

Water 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 thesurrounding 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 are working with a sense of
responsibility to make good use of the limited water resources.
Example Initiatives

Tailings and other mining waste generated by mines accumulate at storage facilities. The breach of an accumulation site
could potentially cause significant damage.
Accordingly, going forward, we will continue to soundly manage closed mines
while also engaging in facility and infrastructure strengthening and improvement.

• Prevention of excessive water withdrawal by understanding the amounts of withdrawal by source• Reduction of water withdrawal and discharge amounts by promoting the use of recycled and reused water• Promotion of effective use of water by understanding water balance and optimizing our amounts used
• Reduction of environmental impact by reducing amounts of hazardous chemical substances in effluent discharged into water• Promotion of preservation of biodiversity through aquatic life monitoring surveys near our business sites• Promotion of infrastructure development in areas where access to water is difficult

 Decommissioned and Closed Domestic Mines(as of July 1, 2023, dates in parentheses are closure/suspension dates)

SMM’s management of decommissioned
and closed domestic mines includes
daily, 24-hour treatment of wastewater
discharged from mines and accumulationsites, and maintenance of old drift andslag and waste rock storage facilities, inorder to prevent mine pollution.

Kounomai Mine
(October 1973)

Management framework fordecommissioned and closed mines
Yoichi Mine
(October 1963)

Kunitomi Mine

Kitami Mine

(March 1945)(October 1963)

Omiya Mine
(June 1950)

Yaso Mine

Okuchi Mine

(October 1970)(September 1977)

Sazare Mine
(July 1979)

At Coral Bay Nickel Corporation (CBNC) in Palawan Island, the Philippines makes effective use of water resources because thearea is prone to water shortages during the dry season. For example, they treat supernatant water that accumulates in tailings dams
at recycling facilities and then reuse the water in their smelting and refining processes. The company also supplies this water as
industrial water to lime slurry producers, 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 tolocal 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 toreduce the environmental effects of discharge by conducting regular water quality tests to determine if plant operation is having amajor impact on water in the surrounding area.
The SMM Group also completes an annual CDP’s water security questionnaire regarding its water management. Further, on June
1, 2023, we established the Sumitomo Metal Mining Group’s Water Policy to summarize and clarify our approach to water.

Managing Tailings Dams

GRI 306-1/306-2/G4-MM3

Tailings facilities in which tailings from mines are dumped may collapse and cause considerable damage.
In August 2020, Global Tailings Review (GTR) formulated the Global Industry Standard on Tailings Management (GISTM). The
International Council on Mining and Metals (ICMM)* is committed to compliance with GISTM, and as a member of ICMM, we areconducting investigations to comply with the standard.
Our Group thoroughly implements measures to prevent significant environmental accident at closed mines that it manages andtailings dams managed by CBNC and Taganito HPAL Nickel Corporation (THPAL), both of which are located in the Philippines.
Based on the GISTM, in August 2022, we disclosed on our website tailings dams with a risk classification of “Very High” or higher(one managed by CBNC and one managed by THPAL). P.64-68* ICMM

P.130

Managing Decommissioned and Closed Mines

GRI 306-1/306-2

The SMM Group appropriately manages the top soil, waste rock, tailings, sludge, and other mining waste generated in accordancewith our resource business. Rock (waste rock) containing sulfide ores, in particular, can easily result in the production of water that
contains heavy metal ions as well as acidic water due to sulfate ions from oxidation, and accordingly we appropriately treat effluent
at a water treatment facility prior to discharging it.
As shown in the map of closed mines managed by SMM, we operate 42 slag storage facilities in Japan.
Legal standards regarding the stability of storage facilities were revised after the Great East Japan Earthquake in 2011. Afterassessments were conducted based on these revised standards, 11 sites were found to be insufficient, and by 2018 we had finishedconstruction to strengthen these sites, investing a cumulative total of approximately ¥4.5 billion.

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Besshi Copper Mine
(March 1973)

Rehabilitating Tailings Dams

GRI 306-1/306-2

CBNC and THPAL produce intermediates for electrolytic nickel and nickel sulfate. At tailings dams, the slurry after the recovery ofnickel through the production process is treated through neutralization to eliminate toxins and precipitate heavy metals. The
treated slurry is then pumped to the tailings dam where it allows the solids to settle down.
When the storage capacity of the tailings dams is reached, the site is rehabilitated in order to establish an independent and sustainable ecosystem. Rehabilitation does not simply mean greening, but also making it possible for the area to return into its originalstate which is conducive to sustaining a natural ecosystem. This involves agroforest technology wherein the forest is establishedalongside agricultural farming. Thus, vegetables and fruits are also grown in the area. Many local residents and indigenous people
are involved in this work, and rehabilitation plays an important role in creating local employment.
Rehabilitated area P.73
Details on business activities in areas of high biodiversity value

P.73

Reducing the Environmental Impact of Constructing New Plants
To construct a refinery in the Philippines, we first had to obtain an Environmental Compliance Certificate (ECC) from the
Department of Environment and Natural Resources-Environmental Management Bureau (DENR-EMB), and we submitted an
Environmental Impact Assessment (EIA).
When constructing the refinery, we sought adequate dialogue with the Philippine government, local authorities and local citizens right from the planning stage. Efforts were made to construct a plant that would have a minimal impact on the environment.
For example, the pier used to deliver sulfuric acid and methanol to the plant was made to circle around the coral reef, and wastewater outlets were also positioned to ensure the reef’s protection.
CBNC began the operation of the refinery in April 2005 based on a design certified by the DENR-EMB, and was followed by
THPAL in October 2013. The refineries have set up Environmental Management Offices (EMO) that are primarily responsible in promoting environmental initiatives of the operations. Besides environmental surveys by the EMO, the environment is monitored by ateam of representatives from organizations such as the DENR, local authorities and NGOs which carry out regular sampling of theair, water, flora and fauna. With this sort of environmental monitoring, we check that the construction and operation of plants do
not have serious impacts on the ecosystem, while keeping environmental impacts from wastewater and other factors to aminimum.
Through our efforts in this area, CBNC and THPAL have been awarded the Philippines DENR-EMB’s Presidential Mineral Industry
Environmental Award (PMIEA) eight times and two times, respectively between 2014 and 2022.

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Environment

 Environment

Significant Environmental Accidents / Biodiversity

Environmental Impact of Business Activities (material flow)
INPUT (resources & energy)

12,840 kt

Energy Input2 22,762 TJ

Percentage of Recycled Input Raw Materials Used

2.21%

Total Energy Consumption

Raw Materials
TotalGold and silver ore
Copper concentrates
Nickel oxide ore
Nickel matte, etc.
Raw material for batteries
ALC raw material, incl. silica rock
Hydrotreating catalyst raw material
Total
Recycled Materials1
Copper scrap
Secondary zinc
Precious metals and other secondary materials
Electric arc furnace dust
ALC waste
Materials
Total
Silica sand (for copper smelting)Chemicals (lime-based)
Chemicals (sodium-based)
Chemicals (magnesium-based)
Sulfuric acid
Cement, etc.

10,424 kt
202 kt
1,493 kt
8,418 kt
37 kt
85 kt
150 kt39 kt
236 kt122 kt
11 kt
5 kt
97 kt
848 t
2,180 kt
115 kt1,313 kt
102 kt15 kt
545 kt91 kt

Non-Renewable Energy Sources Total
Heavy oil
Coal/coke
Diesel/gasoline/kerosene
LPG/LNG
City gas/natural gas
Purchased electricity
Purchased steam3
Renewable Energy
Total
Solar power generation,
binary power generation
Biomass steam

Products

Energy Value

Consumption

22,696 TJ
1,783 TJ
13,778 TJ
997 TJ
414 TJ
605 TJ
5,120 TJ
0 TJ
66 TJ

44,516 kL
533,553 t
26,529 kL
8,143 t13,477 ML
1,422,101 MWh
75 GJ

1 TJ

295 MWh

65 TJ

63,544 GJ

Water Withdrawal

4

197,186 ML

Total Water Consumption from All Areas5 3,552 ML
Freshwater Withdrawal
Total
Surface water (rivers)
Rainwater
GroundwaterIndustrial water (water from another organization)
Tap water (water from another organization)
Seawater Withdrawal
Total

GRI 303-4/305-1/305-2/305-7/306-1/306-2/306-3/G4-MM3

2,676 kt

Percentage of Products from Recycled Input

Emissions
Emissions into the Atmosphere

7.42%

Electrolytic copperGold
SilverElectrolytic nickel
Nickel sulfate
Electrolytic cobalt
Crude zinc oxide
Chromite1
Ferronickel
Battery materials
Sulfuric acid
Slag
Hydrotreating catalysts
ALC (Siporex)

447 kt
18 t
228 t
53 kt
12 kt
4 kt
43 kt
69 kt
52 kt
61 kt
312 kt1,417 kt
10 kt
303 ML

Business Activities

Raw Material Input

OUTPUT (products & emissions)

GRI 301-1/301-2/302-1/303-3/303-5

GHGTotal
Scope 1 (direct emissions)2
Scope 2 (indirect emissions)3
SOx
NOx
Soot and dust

Discharge into Water

2,823 kt
1,965 kt
858 kt
1,715 t1,512 t
68 t

132 t

COD
BOD
Total phosphorus
Total nitrogen

49 t
16 t
1t
66 t

Release of Chemical Substances(PRTR substances) 84 t
Atmosphere
Public water areas
Soil/landfills on business premises

37,686 ML
15,321 ML
44 ML
7,586 ML
14,346 ML
391 ML
159,500 ML

Total Water Discharge

8t
75 t
1t

196,736 ML

Discharges into seas4
Discharges into rivers
Sewerage, etc.

Waste5, 6, Total waste

195,792 ML
879 ML
65 ML

6,946 kt

Of which, 6,846 kt is landfill on company premises and 2,438 t is PRTR
substance transfers7
Spoil
Leach sludge from CBNC, THPAL, etc.
Industrial waste (Japan)
Recycling
Other

Raw material and energy inputs in business activities P.71
Water resource input, water discharge, and water consumption in business activities

P.71

Figures are rounded to the nearest whole number, so totals may not match
1. Does not include materials recycled within plants
2. Fuel, heat, electricity, etc. consumed in business activities in Japan and overseas are covered, and electricity consumption is converted into joules at 3.6 GJ per 1,000 kWh
3. Purchased steam includes purchased cold water
4. SMM uses the WWF Water Risk Filter to identify and assess regions with high water stress and has determined there are no areas of high water stress at SMM Group’s productionsites
5. Water consumption is estimated by subtracting the total water discharge from the total water withdrawal for each business site. There was no water storage which would have asignificant water-related impact

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Release and transfer of chemical substances in business activities

6 kt
6,840 kt
99 kt
23 kt
1 kt

P.72

1. The percentage of products from recycled input increased because chromite was added to products in FY2021
2. Both Japan and overseas figures are calculated based on the GHG Protocol, and emission factors are based on the Japanese law “Act on Promotion of Global WarmingCountermeasures.”
3. GHG emissions factors for electric power purchased in Japan are the adjusted emissions factors of electric suppliers
For China and Taiwan, the latest emission factors published by the governments of those countries are used
For Vietnam, the default emission factor compiled by The Climate Registry (TCR) (2011 national emission factors published by the International Energy Agency (IEA) in 2013) is used
4. Discharges into rivers flowing into enclosed seas are included as “discharges into seas”
5. Waste includes items of value
6. Industrial waste treatment is commissioned to Group companies and industrial waste is recycled for use as raw material. Accordingly, waste figures include some waste which was
effectively not discharged outside the Group, in particular (hazardous) sludge
7. Total transfers to sewerage and off-site transfers

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Environment

 Environment

Significant Environmental Accidents / Biodiversity

Emissions into the Atmosphere*

GRI 305-7

SOx emissions in FY2022 remained flat, decreasing by about 1% year on year. NOx emissions increased by about 12% year on year.
Due to the effect of fuel specifications, THPAL’s emissions increased by about 240 tons. Soot and dust emissions increased by about
18% year on year.
* Each emissions figure was calculated based on the measurement of flue gas

(t)
2,000

1,733 1,739 1,715

120
1,500

1,444

1,423
1,271

95
80

80

84
68

1,000

500

500

60

 Release and Transfer of PRTR Substances

40

(t)
3,000

20

2019 2020 2021 2022

 Toyo Smelter & Refinery    Niihama Nickel Refinery Other0(FY) 20182019 2020 2021 2022

0(FY) 20182019 2020 2021 2022

1. COD (Chemical Oxygen Demand): Measured for discharge into seas, including emissions into rivers flowing into enclosed seas
2. BOD (Biochemical Oxygen Demand): Measured for discharge into rivers, excluding emissions flowing into enclosed seas
3. Diversion water: Water that flows into the site as an input and flows out of the site as an output without being used for production purposes

55

 Seawater Withdrawal(million m3)(million m3)
200

40

48

49

35.7

36.9

35.2

36.0

37.7

1,957

2018

2019

2020

2021

 Breakdown of Releases into the
Atmosphere
(t)
10

165
143

1,500

6

0
(FY) 2018

145

1,000

4

0.7

1
2022

 Breakdown of Discharge into Water

40
30

2019 2020 2021 2022

1.7

91

18

0.8

0.3

10

7.2
0.9

0
Toluene

0
Other

54

20

2.2

2

500

 Toyo Smelter & Refinery    Niihama Nickel Refinery    Shisaka Smelting Co., Ltd.    Harima Refinery    Hyuga Smelting Co., Ltd.    CBNC    THPAL All mining operations    All other operations

Sustainability Report 2023

0.9
1
2021

(t)
70

Dichloromethane2019 2020 2021 2022

1.7
1
2020

159

Cadmium and its
compounds

0(FY) 2018

0.7
3
2019

8

Lead compounds

2019 2020 2021 2022

75

67

64

2,000

50

10

74

60

75

16
12

79

 Landfill (SMM premises)    Soil    Water    Atmosphere Breakdown of Transfers

0

SUMITOMO METAL MINING CO., LTD.

0.7
3
2018

0
(FY)

2022

 Transfer    Release

Nickel compounds

0(FY) 2018

77

40

20

Manganese and its
compounds

10

60

1,822

500

0
(FY)

84
8

78
9

50

157
150

2,120

1,000

20

15

85
9

60

2,200

100
30

13

15

2,438

30

BOD
15

97

19

3.1

40

20

100

80

Other

49

50

100

2,035
78

2,670

(t)
2,500

 Freshwater Withdrawal
50

COD
56

1,907
85

2,000

1,500

The COD1 pollutant load in FY2022 increased by about 3% year on year. The BOD2 pollutant load increased by about 35% year on
year due to a small rise in the analysis values at Hishikari Mine as well as an increase in discharge. Many SMM Group business sites
face onto Japan’s Seto Inland Sea and are subject to controls on the total amounts of COD, nitrogen, and phosphorous emissions
under the Act on Special Measures Concerning Conservation of the Environment of the Seto Inland Sea. In addition, we adhere to
the discharge standards of the Water Pollution Prevention Act and have not had any violations in this area.
The volume of freshwater usage increased by about 5% year on year to about 37.7 million m3. In this calculation, diversion water,3which is unrelated to production, is excluded from withdrawal and discharge at mines. The volume of seawater usage increased byabout 10% year on year. This was attributable to an increase in production volumes at the Toyo Smelter & Refinery.

60

2,217
97

 Shisaka Smelting Co., Ltd.    Harima Refinery    Hyuga Smelting Co., Ltd.    CBNC    THPAL  GRI 303-2/303-3/303-4

(t)
70

2,522
84

2,500

Discharge into Water COD and BOD Pollutant Loads

(t)
120

2,770
100

Nickel compounds

0(FY) 2018

 Breakdown of Releases, by Destination

Hydrogen fluoride
and its
water-soluble salts

1,000

1. Industrial waste treatment is commissioned to Group companies and industrial waste is recycled for use as raw material. Accordingly, chemical substances transferred off-siteinclude some substances which were effectively not discharged outside the Group, such as nickel compounds as well as cobalt and cobalt compounds
2. Iron clinker: The residue remaining during the processing of electric arc furnace dust after recovering zinc. The residue able to be sold is called “iron contained pellet,” and the residue to be disposed of is called “iron clinker”

105
100

1,352

Boron compounds

1,376

1,512

Methyl naphthalene

1,608
1,500

(t)
140

1.9

0.7
Other

(t)
2,000

 Soot and Dust Emissions

Zinc compounds(water-soluble) NOx Emissions

GRI 305-6

An overview of releases and transfers of chemical substances based on Japan’s Pollutant Release and Transfer Register (PRTR) system in FY2022 is as follows. The number of data-submitting sites in the SMM Group was 26 (24 in FY2021). The Group had 40 (42 in
FY2021) substances requiring registration.
The total released and transferred amount (releases + transfers) came to 2,522 t, an increase of about 24% year on year, mainly
due to an increase in transfers. The increase in transfers was due to an increase in the volume of iron clinker2 to undergo final disposal as industrial waste after being generated as a by-product at Shisaka Smelting Co., Ltd. and a reduction in the volume of manganese transferred off-site.
The amount released into the atmosphere decreased by about 7%. There were no releases of ozone-depleting substances.
Discharges into water increased by about 12% year on year.

Nickel compounds

 SOx Emissions

Release Control for Chemical Substances1

 FY2018    FY2019    FY2020    FY2021    FY2022
Displayed PRTR substances are those with the highest amounts in FY2022

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

61

Environment

 Environment

Significant Environmental Accidents / Biodiversity

Trends in Final Disposal Amount of Industrial and Mining Waste in Japan
The SMM Group has long been making efforts to reduce
industrial waste in Japan and the amount of wastewatersludge (mining waste) that undergoes final disposal from themine-affiliated Toyo Smelter & Refinery. The total final disposal
amount in FY2022 was 74 kt, which was an increase of about
14 kt from FY2021. The main factor behind this increase wasan increase in the final disposal volume of iron clinker at
Shisaka Smelting Co., Ltd.
Final disposal amount of industrial and mining waste in JapanGRI 306-5

(kt)
100

80

74
1

71
1
60

52
1

85
40

60
1

51

0
(FY)

2018

2019

2020

2021

2022

 Breakdown of Industrial Waste (in Japan) by Type of Waste

(kt)

6.9

17.4

24.3

0.3

1.0

1.3

0.0

0.3

0.3

Landfill

70.7

6,847.0

6,917.6

Volume reduction,
etc.

1.4

0.9

2.3

Total

79.3

6,866.7

6,945.9

Recycling
Incineration(with heat recovery)4Treatment
method3

Incineration(without heat recovery)4(kt)

Landfill on company premises /Contracted disposal

Landfill on company
premises

6,846

Contracted disposal

100

Glass, concrete, ceramic waste
2.1%
Scrap metal 2.5%
Waste plastic
Hazardous sludge

Details(%)

Recycling

773.6

46.1

1,103.9

40.6

Recycling (Heat recovery)

325.4

19.4

613.2

22.6

Unused262.0

Incineration

263.4
34.6

318.2
1,679.1

Other waste

7.2%

2.8%
6.2%

100.0

Environmental education activities

Business site
general managers• Education of newly-appointed businesssite general managers• Periodically send out information• Promote understanding of the importance of the relationship between corporations and the environmentand raise self-awareness and environmental awareness as the business site general manager• Provide information about revisions of laws and important precedents by a periodical e-mail magazine

Purpose, contents

Managers andsupervisors• Environmental e-learning (Environmental
Laws, Basic)• Understand the spirit and idea of Japan’s laws, and understand Japan’s mandatory and notification
proceduresInternal auditors• EMS Internal Auditor Training Course, standard update course• Training of internal auditors for EMS with qualifications conforming to ISO 14001 (2015) and updating
holders of old qualifications to the 2015 version

Managers• Education about environmental
preservation• Provide information about the SMM Group’s environmental preservation initiatives and raise
self-awareness

Environment
managers• Conference for environment managers• Periodic education about the Chemical
Substances Control Law• Improve knowledge of Japan’s environmental laws and regulations, enhance environmental management
capabilities, raise self-awareness• Check the outline of Act on the Regulation of Manufacture and Evaluation of Chemical Substances andinformation on revisions, prevent omissions of notification, and raise self-awareness

Sales
representatives• Explanatory meeting: overseas chemical
substance regulations• Impart knowledge to sales representatives about overseas chemical substance regulations and raise theirself-awarenessNew and midcareer hires• Education about environmental preservation for mid-career hires• Education about environmental preservation for new employees• Impart knowledge about the SMM Group’s environmental preservation initiatives and raise self-awareness

99 kt

Slag

79.2%

The SMM Group has established two e-learning courses onenvironmental laws with the objective of raising levels ofcompliance. Employees, especially managers and supervisors,
involved with environmental laws and regulations, and internal environmental auditors, are taking part in those courses.
The e-learning course on Japan’s main environmental laws
covers 10 laws that are deeply related to the businesses of
the SMM Group and provides explanations of mandatory
standards and notification procedures. As failing to comply
with these requirements constitutes a violation of the law,
employees must be certain to keep them in mind when conducting business. Given not only compliance with regulations
and obligations, but also the voluntary risk management andinformation disclosure demanded of businesses today, theGroup offers an e-learning course called Environmental Laws,
Basic that serves as a stepping stone for properly conducting
business. This course covers 12 laws, including the Basic
Environment Act and the Basic Act on Biodiversity.

 Laws Covered in the Environmental e-learning Courses
Name of law
Basic Environment Act

Environmental
Laws

Environmental
Laws, Basic









Basic Act on Biodiversity
Basic Act on Establishing a Sound
Material-Cycle Society
Act on the Promotion of Environmental
Conservation Activities throughEnvironmental Education
Law Concerning the Promotion ofBusiness Activities with Environmental
Consideration
Act on Promotion of Global WarmingCountermeasures
Act on the Rational Use of Energy













Air Pollution Control Act(including the content of the Act on
Pollution Prevention
Systems in Specified
Factories)

Water Pollution Prevention Act

Soil Contamination Countermeasures Act



PRTR LawPCB Special Measures Law













Act on Promoting Green Procurement

Sustainability Report 2023

100.0

Targeted employees

Poisonous and Deleterious Substances
Control Act
Waste Management and Public Cleansing
Act

SUMITOMO METAL MINING CO., LTD.

2,717.0

Total waste

Industrial waste treatment is commissioned to Group companies and industrial waste is recycled for use as raw material. Accordingly, waste figures include some waste which was
effectively not discharged outside the Group, in particular (hazardous) sludge
1. In general, this depends upon definitions of the regulations in the other releasing countries concerned. Since Japan does not have such laws or regulations, SMM applies the following definition: “Specially controlled industrial waste and waste delivered to controlled landfill sites (excluding designated inert waste (5 categories of inert waste) that should havebeen delivered to landfill sites for inert industrial waste, but was disposed of at controlled landfill sites due to the distance limitation)”
2. Waste other than hazardous waste
3. Treatment methods outside of the Company were identified based on the written agreement with the disposal company and the manifest
4. Since FY2021 incineration has been classified into two categories: with heat recovery and without heat recovery, and the hazardous category of incineration (without heat recovery)is 0.01 kt. To unify digits, it is shown as zero

62

36.8
736.4

Environmental Education

GRI 306-3/306-4/306-5

Total

Amount(t)

Education on the Environment

59

1. Includes waste destined for landfills and incineration without heat recovery
2. Mining waste in the form of wastewater sludge generated by mine-affiliated Toyo
Smelter & Refinery that is landfilled within the business site

Nonhazardous

Details(%)

Total waste

 Industrial waste    Mining waste2

Waste by Type and Treatment Method (FY2022)

Group

Amount(t)(Without heat recovery)

74

70

Directly controlled
business sites

Landfill

20

Hazardous

GRI 306-3/306-4/306-5

86
1

P.72

 Waste by Treatment Method (hazardous1/non-hazardous2)

Emissions of Waste Plastic (FY2022)
Recycling of material and recycling, etc. (heat recovery)accounted for about 65% at directly controlled business sites
and about 63% for the SMM Group as a whole. We will work
to further reduce emissions and promote recycling.

 Final Disposal Amount1 ofIndustrial and Mining Waste in JapanSUMITOMO METAL MINING CO., LTD.



Sustainability Report 2023

63

Environment

 Environment

Significant Environmental Accidents / Biodiversity

Information Required to be Disclosed by GISTM
The information required to be disclosed by GISTM requirement 15.1 for two of the Group’s tailings facilities, CBNC TSF3 and THPAL TSF1, which are classified as “very high” or “extreme” in terms of expected damage, is presented below.
 Details of tailings facilities operated with “Extreme” or “Very high” potential consequences
Name of tailings facility

Requirement
15.1B

CBNC TSF3

THPAL TSF1

Operation

Coral Bay Nickel Corporation

Country(CBNC)

Taganito HPAL Nickel Corporation

Philippines

Philippines

1)

A description of the tailings
facility

Coral Bay Nickel Corporation (CBNC), hydrometallurgical processing plant in Rio Tuba at the southernmost tip of Palawan
Philippines, commenced commercial operation to produce 10,000 tons of nickel per year from April 2005, and expand second processing line for its annual output to 20,000 tons of nickel in June 2009. Through High-Pressure Acid Leach (HPAL),
nickel and cobalt in low-grade nickel laterite ore are leached using sulfuric acid and recovered as sulfides. After neutralized,
tailings which are hematite and gypsum as predominant are discharged Tailings Storage Facility (TSF).
CBNC TSF3 is about 1.5km north-east of the plant. The embankment of CBNC TSF3, which has one enclosed embankmenton three sides excluding the western side is Rock-fill Dam with 32.0m of the maximum height, 42.0m a.s.l. of the crest. It isbeing built to full height in one stage with no further raises. The construction of the embankment commenced in October
2021, and is scheduled to be completed in February 2027. The cofferdam which has same structure as the embankment
forms the south cell and the north cell in CBNC TSF3. The total impounding capacity is 16.5Mm3. Tailings discharged into
the south cell commenced from January 2023.

Taganito HPAL Nickel Corporation (THPAL), hydrometallurgical processing plant located at Barangay Taganito, Claver,
Surigao del Norte, commenced commercial operation to produce 30,000 tons of nickel per year from June 2013. ThroughHigh-Pressure Acid Leach (HPAL) same as CBNC, nickel and cobalt in low-grade nickel laterite ore are leached using sulfuric
acid and recovered as sulfides. After neutralized, tailings which are hematite and gypsum as predominant are discharged
Tailings Storage Facility (TSF).
THPAL TSF1 is about 3.0km south-east of the plant. The embankment of THPAL TSF1 is Rock-fill Dam with 89.0m of the
maximum height, 89.0m a.s.l. of the crest, and is designed in four stages raised by Downstream method. The 1st stage
embankment was commenced to construct from April 2010, and the 3rd stage embankment, 75.0m a.s.l. of the crest, wascompleted to build in December 2022. The 4th stage of embankment will be commenced to build from April 2024 and becompleted in June 2030. The total impounding capacity is 96.0Mm3.
Tailings discharged into THPAL TSF1 started from June 2013. The Hillside Channel is along the entire perimeter of THPALTSF1 to prevent rain runoff from entering inside its impoundment.

2)

The Consequence
Classiﬁcation

The Consequence Classiﬁcation is rated as “VERY HIGH”.
The number of people potentially at risk from dam breach analysis is assumed to be over 100 and up to 1,000, as there areabout 200 residences in the sphere of influence. There are no hospitals or schools in the impacted area. However, there is anational highway that crosses the flooded area, which may affect daily life and distribution.

The Consequence Classiﬁcation is rated as “EXTREME”.
The number of people at risk from dam breach analysis is estimated to be over 1,000, as there are over 300 residences
within the sphere of influence. There is one clinic in the impact zone, but no school. However, as there is a national highway that crosses the flood zone, it may affect daily life and distribution relations.

3)

A summary of risk assessment ﬁndings relevant to thetailings facility

Based on ANCOLD guidelines, CBNC TSF3 was designed to ensure stability by performing stability analysis using the predicted Maximum Credible Earthquake (The 10,000 year seismic event) for the dam classification (EXTREME). The results ofthis analysis and the design were verified by third-party verification. The flood discharge was also designed to be able tocarry the “Maximum Probable Precipitation” (PMP) and “Probable Maximum Flood” (PMF), which were also validated by athird-party verification.

Based on ANCOLD guidelines, THPAL TSF1 was designed to ensure stability by performing stability analysis using the predicted Maximum Credible Earthquake (The 10,000 year seismic event) for the dam classification (EXTREME). The results ofthis analysis and the design were verified by third-party verification. The flood discharge was also designed to be able tocarry the “Maximum Probable Precipitation” (PMP) and “Probable Maximum Flood” (PMF), which were also validated by athird-party verification.

4)

A summary of impact assessments and of human exposure and vulnerability totailings facility credible flow
failure scenarios

According to the results of the breach analysis, which assumes a forced dam breach, tailings will be released into the riverbed on the southeast side and flow downstream from the National Highway to the downstream riverbed area. As a result,it was assessed that approximately 200 residences along the national highway and around the riverbed area would be
affected by flooding.

According to the results of the breach analysis, which assumes a forced dam breach, tailings will be released into the
Hayanggabon River, and it was assessed that more than 300 residences would be affected by flooding. Note that 41
households residing directly downstream of the dam were relocated prior to the construction of the dam.

5)

A description of the design
for all phases of the tailings
facility lifecycle

Started inpoundment

Acvtive
Operating on South Cell
Constracting on North Cell
Mar-2023

Type
Raising method
Dam Hight
Dam Elevation
Downstream slope
Upstream slope
Length of Embankment

Rockfill Dam
N/A
32 m
42 m
1:2.0
1:1.8
2,350 mStatusCatchment area
Impondment area
Impoundment Volume
Flood Criteria-Annual Exceedance Probability
Seismic Criteria-Annual Exceedance Probability
Operational Basis Earthquake(OBE)
Maximum Credible Earthquake(MCE)

107 ha75 ha
16.5 Mm3
PMF (745 mm/day)
1/10,000
0.15 g0.25 gStatusStarted inpoundment
Type
Raising method
Dam Hight
Dam Elevation 1st stage
2nd stage
3rd stage
4th stage
Downstream slope
Upstream slope
Length of Embankment

6)64(THPAL)A summary of material ﬁndings of annual performance
reviews and DSR (Dam
Safety Review), including
implementation of mitigation measures to reduce risk
to ALARP

SUMITOMO METAL MINING CO., LTD.

CBNC TSF3: The following suggestions were received from the EOR.
• With regard to the spillway, periodic inspection and cleaning should be performed to prevent blockage and reductionof flow capacity due to accumulation of soil and rocks.

[Action]
Daily inspections of the Spillway and surrounding area are conducted once a day. If accumulated debris is found in theSpillway through visual inspection, they are immediately removed. The inspection of the surrounding area is conducted
to find if there are sources of blockage. Sources like trees, hanging rocks, other materials that may fall and cause blockage
are either removed or reinforced.

Sustainability Report 2023

ActiveOperating in 3rd Stage
Designing the 4th Stage(Final Stage)Jun-2013
Rockfill Dam
Downstream
89 m (4th Stage)
38 m
60 m
75 m
89 m
1:3.0
1:3.0
1,217 m (3rd Stage)
1,476 m (4th Stage)

Catchment area
Impondment area
Impoundment Volume
Flood Criteria-Annual Exceedance Probability
Seismic Criteria-Annual Exceedance Probability
Operational Basis Earthquake(OBE)
Maximum Credible Earthquake(MCE)

940 ha267 ha (4th Stage)
52.7 Mm3 (up to 3rd Stage)
96.4 Mm3 (up to 4th Stage)
PMF (1,549 mm/day)
1/10,000
0.28 g (3rd Stage)
0.41 g (3rd Stage)

The following suggestions were received from the EOR.
• Upstream of THPAL TSF1, the topographic alteration due to mining is expected to increase the runoff coefficient (Larger
PMF value), so the capacity of the flood discharge should be checked.
• In 2017, the Philippine Institute of Volcanology and Seismology (PHIVOLCS) updated the Peak Ground Acceleration(PGA) in the Philippines to consider new findings, and since the design seismic coefficient THPAL have increased, thedesign seismic coefficient and dam stability need to be reconfirmed.
[Action]Verification of the spillway’s flow capacity and the stability of the dam in relation to the design seismic coefficient will beverified during the detailed design of the 4th Stage and reflected in the design.

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

65

Environment

 Environment

Significant Environmental Accidents / Biodiversity

7)

A summary of material ﬁndings of the environmental
and social monitoring programme including implementation of mitigation
measures

A monitoring system for CBNC TSF3 embankment was designed in accordance with ICOLD and ANCOLD guidelines.
Monitoring measured parameters are 1) pore water pressure within the core of the embankment, 2) pore water pressure
within the foundation, 3) groundwater levels and quality seeping through the foundation, 4) subsurface lateral displacement and settlement, and 5) crest settlements.
Effluent from CBNC TSF3 is sampled daily to monitor water quality to ensure that it meets the water quality standards set
forth by the Department of Environment and Natural Resources (DENR) of the Philippines.

A monitoring system for THPAL TSF1 embankment was designed in accordance with ICOLD and ANCOLD guidelines.
Monitoring measured parameters are 1) pore water pressure within the core of the embankment, 2) pore water pressure
within the foundation, 3) groundwater levels and quality seeping through the foundation, 4) subsurface lateral displacement and settlement, and 5) crest settlements.
Effluent from THPAL TSF1 is sampled daily to monitor water quality to ensure that it meets the water quality standards set
forth by the Department of Environment and Natural Resources (DENR) of the Philippines.

8)

A summary version of thetailings facility EPRP
(Emergency Preparedness
and Response Plan) for facilities that have a credible failure mode(s) that could leadto a flow failure event

Emergency Preparedness and Response Plan (EPRP) was established and is conducted according to its contents.

Emergency Preparedness and Response Plan (EPRP) was established and is conducted according to its contents.

1. Response to unusual operating condition
To detect unusual conditions through the monitoring and response different actions taken according to the procedure.

1. Response to unusual operating condition
To detect unusual conditions through the monitoring and response different actions taken according to the procedure.

2. Emergency Response Plana) If an indication of an impending dam break is spotted or observed, the discoverer should report to the CBNCManager and the Supervisor of the Environment Management and Quality Control Section (EMQCS). The Supervisor
must proceed to the area immediately and identify an incident.
b) For major incident, depending on the situation, make following instruction;• Inform the employees and officials of the downstream of the dam to take the emergency evacuation, conduct
head count, and conduct search, and rescue under the supervision of the Disaster and Risk Management
Committee (DRCM) if someone is missing.
• CBNC General Affairs Dept. Manager and Community Relations Officers should immediately contact Local
Government Units to inform them of the incident. Community Relations Officers should guide the community todesignated evacuation sites around their area which is away from the flood routes.
• Stop operation to reduce slurry volume discharge to the tailings dam and operate all pumps to reduce water level.
• The Emergency Response Team (ERT) provide need equipment to be use in response to incident, and request contractors for additional equipment and/or manpower for response.
c) Deploy a command center which is plant Manager, ERT and DRCM. The command center will be the disaster management at the sight where the emergency is unfolding can be best and safety overseen and is to evaluate theactual situation and that the necessary and appropriate action can be implemented or instructed.
d) If every personnel and resident is evacuated and accounted, patrols at a safe distance are conducted to check andprovide assistance and information to areas that have been affected.
e) The situation should be reported to Government Entities within 24 hours.
f) P rovide assistance to rehabilitation and mitigation of impact and to the Disaster Management and Rehabilitation
process.

2. Emergency Response Plana) If an indication of an impending dam break is spotted or observed, the discoverer should report to the Manager andthe Supervisor of Mine Environment Protection and Enhancement Office (MEPEO). The Supervisor must proceed tothe area immediately and identify an incident.
b) For major incident, depending on the situation, make following instruction;• Inform the employees and officials of the downstream of the dam to take the emergency evacuation, conduct
head count, and conduct search, and rescue if someone is missing.
• General Affairs Dept. Manager and Community Relations Officers should immediately contact Local Government
Units to inform them of the incident. Community Relations Officers should guide the community to designatedevacuation sites around their area which is away from the flood routes.
• Stop operation to reduce slurry volume discharge to the tailings dam and operate all pumps to reduce water level.
• The Emergency Response Team provide need equipment to be use in response to incident, and request contractors for additional equipment and/or manpower for response.
• Cutoff national highway at designated point due to the possible flash floodingc) Deploy a command center at THPAL plant site and satellite centers at Taganito side and Hayanggabon side. The command center will be the disaster management at the sight where the emergency is unfolding can be best and safety
overseen and is to evaluate the actual situation and that the necessary and appropriate action can be implemented
or instructed. The satellite center will also serve as public communication sites for grievances, information dissemination, etc.
d) If every personnel and resident is evacuated and accounted, patrols at a safe distance are conducted to check andprovide assistance and information to areas that have been affected.
e) The situation should be reported to Government Entities within 24 hours.
f ) Provide assistance to rehabilitation and mitigation of impact and to the Disaster Management and Rehabilitation
process.

3. Information, Education and Communication
EMQCS shall coordinate with the Safety Section to plan the Dam break emergency action plan. Two sections shall disseminate this information in hand to all CBNC personnel. The Safety Section should ensure that the necessary materials for the
emergency action plan are adequate and maintained. The Safety Section together with the Community Relations Section
should ensure that the affected communities and their Local Government Unit (LGU) are well informed and educatedabout this scenario.
4. Emergency Drill
Dam break emergency drill is conducted once a year.

3. Information, Education and Communication
MEPEO shall coordinate with the Safety Section to plan the Dam break emergency action plan. Two sections shall disseminate this information in hand to all CBNC personnel. The Safety Section should ensure that the necessary materials for the
emergency action plan are adequate and maintained. The Safety Section together with the Community Relations Section
should ensure that the affected communities and their Local Government Unit (LGU) are well informed and educatedabout this scenario.
4. Emergency Drill
Dam break emergency drill is conducted twice a year.

9)66

Dates of most recent andnext independent reviews

A third party verified the dam stability and the spillway capability in July 2023. The design was identified to meet the
Flood Design Criteria and the Seismic Design Criteria of GISTM.

A third party assessed the dam stability in June 2020 and the spillway capability in July 2023. The design was identified tomeet the Flood Design Criteria and the Seismic Design Criteria of GISTM.

Multipartite Monitoring Team (MMT) which composed representatives from governmental agencies, local governments(municipalities and barangays), religious sectors, non-government organization and mining companies, etc., validate
activities and monitoring data of Environmental Protection and Enhancement Program on every quarter. Next review willconduct in November 2023.

Multipartite Monitoring Team (MMT) which composed representatives from governmental agencies, local governments(municipalities and barangays), religious sectors, non-government organization and mining companies, etc., validate
activities and monitoring data of Environmental Protection and Enhancement Program on every quarter. Next review willconduct in November 2023.

10)

Annual conﬁrmation that the
Operator has adequateﬁnancial capacity to coverestimated costs of planned
closure, early closure, reclamation, and post-closure of
the tailings facility and its
appurtenant structures

Closure plan was established as Final Mine Rehabilitation and Decommissioning Plan (FMRDP) and summited to
Department of Environment and Natural Resources (DENR) of Philippine, and annual deposits is made to the FMRDP
Fund.

Closure plan was established as Final Mine Rehabilitation and Decommissioning Plan (FMRDP) and summited to
Department of Environment and Natural Resources (DENR) of Philippine, and annual deposits is made to the FMRDP
Fund.

Requirement
15.1C

Provide local authorities andemergency services with
sufﬁcient information
derived from the breachanalysis to enable effective
disaster management
planning

Information, Education and Communication (IEC) activities with communities were held regularly for stakeholders andpublic audiences.

Information, Education, and Communication (IEC) activities with communities were held regularly for stakeholders andpublic audiences.

Quarterly, the construction status of CBNC TSF3 and environmental monitoring results were explained to the members of
MMT.

Quarterly, the construction status of THPAL TSF1 and environmental monitoring results were explained to the members of
MMT.

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Environment

 Environment

Significant Environmental Accidents / Biodiversity

The following five requirements are not in conformance with both CBNC TSF3 and THPAL TSF1 and will be addressed within one
year. Except for them, all requirements were confirmed to be in conformity.
 The status of conformance for GISTM and the summary to address any gaps for CBNC TSF3 and THPAL TSF1
Requirement

Criteria

Progress and Further work

Term*

1.1

Conduct the human rights due
diligence

Operations and activities are conducted based on the SMM Group Human Rights
Policy in accordance with UNGP and are compiled to the Philippine Human
Rights Laws and Regulations, but the human rights due diligence process regarding the tailings dam facilities has not been implemented.
The human rights due diligence will be conducted through the process in accordance with the SMM Group Human Rights Policy, which was revised on June 1,
2022.

Within1 year

5.7

For an existing tailings facility, seek
to identify and implement additional
reasonable steps that may be taken
to further reduce potential consequences to people and theenvironment.

On design and construction phase, the design was adopted to minimize risks topeople and the environment and the TSF was developed robust design. While, inthe operation phase, additional reasonable steps to farther reduce potential consequences have not been identified.
For an existing tailings facility, the assessment and the frequency of its procedure
based on the Dam Safety Review (DSF) should be involved to TailingManagement System (TMS).

Within1 year6.5

Establish the Change Management
SystemThrough the TSF lifecycle, processes for identifying changes and processes forevaluation, review and approval have been done. A Change Management System
has not been introduced including documentation as Deviance Accountability
Report.
A Change Management System will be established into the Tailings Management
System.

Within1 year

8.1

Publish the policy on or commitment to the safe management oftailings facilities

Sumitomo Metal Mining Group’s Sustainability Policy was published, and its activity includes the safe management of tailings facilities. While the policy does notmeet the Requirement sufficiently.
The policy for the safe management of tailings facilities will be revised andpublished.

Within1 year13.2

Assess the capability of identified
organizations to address emergency
responses and improve a collaborative plan if gaps are identified.

Public sector agencies and local authorities and institutions that would participate in any emergency response have been identified, but the capacity of identified organizations has not been assessed.
The assessment of the capacity to be supported by identified organizations inany emergency response will be conducted, and a collaborative response plan
will be developed.

Within1 year* Term fixed on August 5, 2023

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Environment

 Environment

Environmental Data

Effective Use of Non-Ferrous Metal Resources

Significant Environmental Accidents / Biodiversity

Percentage of Recycled Input Raw Materials Used
Scope
Recycled raw materials and percentage used

SMM Group

GRI 301-2

Raw Material and Energy Inputs in Business Activities

Unit

FY2018FY2019FY2020

FY2021

FY2022

Raw Material Input

kt
(%)

249
(2.22)

227(2.08)

229(2.13)

239(2.38)

236(2.21)Scope

GRI 301-1/301-2
Unit

FY2018FY2019FY2020

FY2021

FY2022kt

13,334

13,116

12,777

11,936

12,84010,97910,646

10,524

9,808

10,424

Recycled materials*

249

227

229

239

236

Materials

2,106

2,243

2,024

1,889

2,180

Unit

FY2018FY2019FY2020

FY2021

FY2022

TJ

32,58632,052

31,72830,651

22,762

28

19

12

74

66

32,55832,03331,71630,577

22,696

Raw Materials (total amount)

SMM Group

Raw materials

Climate Change

Figures are rounded to the nearest whole number, so totals may not match* Does not include materials recycled within plants

Greenhouse Gas (GHG) EmissionsGRI 305-1/305-2
Scope

Unit

FY2018FY2019FY2020

FY2021

FY2022

kt-CO2e

2,809

2,807

2,760

2,647

2,823

Scope 1 (direct emissions)

1,839

1,943

1,877

1,786

1,965

Scope 2 (indirect emissions)

971

865

882

861

858

Emissions other thanCO2 included in
Scope 1*

—

—

—

—

1,847

GHG Emissions (total)

SMM Group

Sulfur hexafluoride (SF6)
Hydrofluorocarbons (HFCs)

—

—

—

—

630

Methane (CH4)

—

—

—

—

149

t-CO2e

—

—

—

—

0

Nitrogen trifluoride (NF3)

—

—

—

—

0

Perfluorocarbons (PFCs)

—

—

—

—

0

Nitrous oxide (N2O)

Figures are rounded to the nearest whole number, so totals may not match
Both Japan and overseas figures are calculated based on the GHG Protocol, and emission factors are based on the Japanese law “Act on Promotion of Global WarmingCountermeasures.”
GHG emissions factors for electric power purchased in Japan are the adjusted emissions factors of electric suppliers
For China and Taiwan, the latest emission factors published by the governments of those countries are used
For Vietnam, the default emission factor compiled by The Climate Registry (TCR) (2011 national emission factors published by the International Energy Agency (IEA) in 2013) is used
* Disclosure from FY2022 based on the GHG Protocol

Energy and GHG Emissions Intensity Indices*
Scope
Energy intensity index
GHG emissions intensity index

SMM Group

GRI 302-3/305-4
Unit—

FY2018FY2019FY2020

FY2021

FY2022

0.66

0.70

0.65

0.65

0.62

0.65

0.67

0.63

0.64

0.60

Energy Input

GRI 302-1
Scope

Energy Input (calorific value)

SMM Group

Renewable energy
Non-renewable energy sources

From FY2022 onward, fuel, heat, electricity, etc. consumed in business activities in Japan and overseas are covered, and electricity consumption is converted into joules at 3.6 GJ per
1,000 kwh

Water Resource Input, Water Discharge, and Water Consumption in Business Activities
Water Resource Input

GRI 303-3
Scope

Unit

FY2018FY2019FY2020

FY2021

FY2022

ML

192,357

180,348

200,305

181,271

197,186

13,902

14,085

13,717

13,954

15,321

Rainwater

79

36

68

53

44

Groundwater

6,843

8,059

6,657

7,108

7,586

Industrial water (water from another organization)

14,444

14,293

14,33914,437

14,346

404

407

393

417

391

156,686

143,468

165,132

145,301

159,500

Water Withdrawal*
Freshwater
withdrawal

SMM Group

Surface water (rivers)

Tap water (water from another organization)
Seawater withdrawal

Figures are rounded to the nearest whole number, so totals may not match* SMM uses the World Wide Fund for Nature (WWF) Water Risk Filter to determine and evaluate regions with high water stress. As a result of this, there are no areas of high water stressat SMM Group’s production sites* Energy and GHG emissions intensity indices: The amount of energy and GHG emitted during the production of 1 ton of product, assuming the base year FY1990 value to be 1

Water Discharge

GRI 303-4
Scope

Unit

FY2018FY2019FY2020

FY2021

FY2022

ML

183,977

174,392

199,057

176,781

196,736

Seas*

183,060

173,456

198,051

175,753

195,792

Rivers

867

890

965

974

879

Sewerage, etc.

50

47

42

55

65

Unit

FY2018FY2019FY2020

FY2021

FY2022

ML

8,615

6,195

4,281

4,917

3,552

Water discharge (total)

SMM Group

Figures are rounded to the nearest whole number, so totals may not match* Discharges into rivers flowing into enclosed seas are included in “Seas”

Water Consumption

GRI 303-5
Scope

Total water consumption from all areas

SMM Group

Water consumption is estimated by subtracting the total water discharge from the total water withdrawal for each business site

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Environment

 Environment

Environmental Data

Release and Transfer of Chemical Substances in Business Activities
Scope
Releases into theatmosphere

FY2019FY2020

FY2021

FY2022

3,136

2,742

3,257

3,175

3,295

SOx

1,608

1,376

1,733

1,739

1,715

NOx

1,423

1,271

1,444

1,352

1,512

SMM Groupt

Soot and dust

105

Discharge into Water (total)
Discharge into
water

95

80

84

68

71

68

64

59

65

COD1 (chemical oxygen demand)

56

55

49

48

49

BOD2 (biochemical oxygen demand

15

13

15

12

16

2,770

2,217

1,907

2,035

2,522

2,670

2,120

1,822

1,958

2,438

Release (total)

100

97

85

77

84

Landfill (SMM premises)

3.2

2.7

0.8

0.8

0.8

SMM Group

Transfer/Release of PRTR Substances (total)

SMM GroupttTransfer
ReleaseGRI 303-4/305-7
FY2018

Releases into the Atmosphere (total)

Unit

Soil

0.7

0.7

1.7

0.9

0.7

Water

77.4

78.5

73.5

66.6

74.7

Atmosphere

19.0

15.4

8.6

8.8

8.1

Figures are rounded to the nearest whole number, so totals may not match
1. COD (chemical oxygen demand): Measured for discharge into seas, including discharge into rivers flowing into enclosed seas
2. BOD (biochemical oxygen demand): Measured for discharge into rivers, excluding discharge flowing into enclosed seas

Rehabilitated Area

GRI 2-4/G4-MM1

Scope
Amount of land developedor rehabilitated (FY2022)

SMM Group

Final Disposal Amount (total)1

FY2019FY2020

FY2021

FY2022

86

71

52

60

74

Industrial waste

84.7

70.1

50.9

59.0

73.7

Mining waste2

0.9

0.8

0.7

0.7

0.7

SMM Group

t

0

0

22

416 1

20

32

432

455 1

1

03

456

Taganito HPALC

Area of land newly
developed in
FY2022

Area of land newly
rehabilitated in
FY2022

D
Total area of landdeveloped but notrehabilitated(A+B-C)

Figures are rounded to the nearest whole number, so totals may not match
1 Historical figures were reviewed and adjustments were made to prior periods
2 In addition to the rehabilitated area within the development site mentioned above, CBNC cooperated with the Philippine government, and proceeded with the rehabilitation of anadditional 35 hectares in nearby regions outside the development site in FY2022, bringing the total certified rehabilitated area to 149 hectares (including bamboo groves) to date(Historical figures for off-site rehabilitated areas were reviewed and adjustments were made to prior periods)
3 In addition to the rehabilitated area within the development site mentioned above, THPAL cooperated with the Philippine government, and proceeded with the rehabilitation of anadditional 59 hectares in nearby regions outside the development site in FY2022, bringing the total certified rehabilitated area to 600 hectares to date

Business Activities in Areas of High Biodiversity Value*
Scope

GRI 306-5
FY2018

Coral Bay Nickel

B

GRI 304-1/G4-MM2

Currently, there are no projects in any region requiring the preparation of a management plan.

Final Disposal Amount of Industrial and Mining Waste in Japan
Unit

22
ha

Hishikari Mine

Regions and production sites

Scope

Unit

A
Total area of landdeveloped but notrehabilitated (as ofthe end of FY2021)

Unit

Seto Island Sea
SMM Group

FY202262

Shisaka Smelting Co., Ltd. (production site) operates on
Minoshima and Ienoshima islands, neighboring Setonaikai
National Park. Neighboring areas equivalent to IUCN Category 2

583

Coral Bay Nickel Corporation (production site) operates on
Palawan Island in hunting-prohibited and bird protection areas
equivalent to IUCN Category 4haPhilippines* Areas classified as protected by the International Union for Conservation of Nature (IUCN) as Category 4 or higher and adjacent areas or areas with high biodiversity value that areconsidered equivalent (SMM’s survey)
Areas classified as Category 1 are of highest priority

1 Includes waste destined for landfills and incineration without heat recovery
2 Mining waste in the form of wastewater sludge generated by mine-affiliated Toyo Smelter & Refinery that is landfilled within the business site

Environmental Preservation-Related Investments in Capital Expenditures
Scope
Investments Related to Environmental Preservation(total)

SMM Group

Unit¥ millions

Pollution prevention/
environmental preservation
Energy conservation
Percentage of environmental preservation-related
investments to capital expenditures

SMM Group%

FY2019FY2020

FY2021

FY2022

FY2023(plan)

5,385

6,071

7,718

12,18018,856

5,244

5,715

7,549

11,694

18,446

141

339

157

477

401

10.6

17.3

11.9

8.6

9.5

Figures are rounded to the nearest whole number, so totals may not match

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