Sustainability Report 2023

Introduction

Contents  1  1

Introduction
Editorial Policy  2	The Sumitomo Business Spirit and the SMM
Group Corporate Philosophy  3

Editorial Policy GRI 2-1/2-2/2-3/2-5
74
76

Business and Human Rights

80	Employees’ Occupational Health and Safety86	Diverse Human Resources / Development andLong-Term Vision  4	Sustainability at the Sumitomo Metal Mining

SocialParticipation of Human Resources
110	Co-Existence and Mutual Prosperity with Local

Group

Communities  6	Sustainability Issues in the Value Chain

116

  8

120	Human Rights in the Supply Chain

SMM Group Overview

Rights of Indigenous Peoples

10	SMM Group Business Model

124

Engagement with Stakeholders

12

138

Research & Development

139

Intellectual Property

Our History142	Social Data

The Sumitomo Metal Mining Group Sustainability Report 2023 aims to report on our Group’s basic approach to theachievement of a sustainable society, our promotion structure and KPIs for achieving Vision for 2030 with respect tomaterial issues, the results of our activities in FY2022, and our future plans.
The report describes our Group’s sustainability-related activities within the framework of environment, society, andgovernance, along with the positive and negative effects on society of our Group’s business activities and our initiatives
to achieve a sustainable society. As tools for engagement with all stakeholders, we followed the Mining Principles of theInternational Council on Mining and Metals (ICMM) to which we belong and made reference to requirements and disclosures under the GRI Standards, in order to disclose information in line with international guidelines. We also disclose
information on climate change in accordance with the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD).
Through this report, we seek to enhance understanding of our Group’s sustainability activities, to invite wide-ranging
comments from stakeholders, and to enhance our activities and information disclosure in the future.

Scope of the Report

Independent Assurance

Sumitomo Metal Mining Co., Ltd. (SMM)

We have received independent assurance from KPMG AZSA Sustainability
Co., Ltd. regarding performance data and other data in this report. This
report is issued following prior confirmation by our president of thereport’s content and of the receipt of independent assurance. Indicators
subjected to assurance are noted by the symbol.

The Sumitomo Metal Mining Group (SMM and consolidated subsidiaries)

16
16

Sustainability Management
Message from the President

20	Sustainability Management at the Sumitomo

Economic Topics: SMM, consolidated subsidiaries and equity-method
affiliates

162

GovernanceSocial Topics1: SMM and consolidated subsidiaries

164

Corporate Governance

Metal Mining Group

176	Compliance24

Positioning of Vision for 2030

180

Tax Governance26

Vision for 2030 – Formulation Approach

182

Risk Management28	Vision for 2030, Material Issues, KPIs
(Indicators and Goals)

Environmental Topics1, 2: SMM, consolidated subsidiaries and equitymethod affiliates (28 companies)186	Quality Assurance
192

Information Security

1. Our environmental and occupational health and safety reporting covers our consolidated subsidiaries as well as business sites that have been determined to present major impacts
2. Scope: Companies marked with an asterisk in the list of companies on pages 8, 9
and Sumiko Tec Co., Ltd., which the Company sold in November 2022
Period Covered

Japan: April 1, 2022–March 31, 2023
Overseas: January 1, 2022–December 31, 2022
(Some activities before or after the following periods have also been
included)Referenced Guidelines• GRI’s Sustainability Reporting Standards• Task Force on Climate-related Financial Disclosures: TCFD
• Corporate Sustainability Reporting Directive: CSRD
Publication Date

December 2023 (published once a year)
Inquiries

Sustainability Department, Sumitomo Metal Mining Co., Ltd. 11-3,
Shimbashi 5-chome, Minato-ku, Tokyo 105-8716, Japan
Tel: +81-3-3436-7901

Corresponding GRI Sector Standards

196

External Assessments and Awards

32	Effective Use of Non-Ferrous Metal Resources

198	Independent Assurance Report

40

Environmental Management

200

42

Climate Change

GRI Content Index

52	Significant Environmental Accidents /Biodiversity
70	Environmental Data
About the icons used in this report
Link to relevant page in the report
Link to external site
Link to PDF fileMining, Metal processing
We plan to disclose information in line with the Sector Standards from FY2024

Information Disclosure Framework

Sustainability Information
Sustainability Report Corporate Governance Report*
 Corporate Website (Sustainability)h‌t‌t‌p‌s://ww‌w.smm.co.jp/en/sustainability/

Investors
Integrated Report Progress of Business Strategy
 IR-Day Corporate Website (Investors)


Annual Securities Report*
Integrated Report*
 Shareholder Communications
Financial (corporate value)

Environment

References

Non-financial (social value)

30

196

h‌t‌t‌p‌s://ww‌w.smm.co.jp/en/ir/* Timely disclosure and legal disclosure are indicated by an asterisk

Disclaimers

About future projections, etc.

The sums of some data may not match reported totals due to rounding. In
addition, some values from previous fiscal year reports may have been revised
following reviews of the data.
In this report, CBNC and THPAL are acronyms for Coral Bay Nickel
Corporation and Taganito HPAL Nickel Corporation, respectively.
Also, unless otherwise stated, the term “ton” refers to a metric ton.

Future projections, etc. in this report are based on information available to theCompany at the time of writing and incorporate risks, uncertainties, and otherfactors.
Accordingly, future business results may differ from content in this report.

SUMITOMO METAL MINING CO., LTD.

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Introduction

 Introduction

The Sumitomo Business Spirit and the SMM Group Corporate Philosophy

The Sumitomo Business SpiritLong-Term Vision

Become the world leader in the non-ferrous metals industry

Article 1

Sumitomo shall achieve strength and prosperity by placing prime importance on
integrity and sound management in the conduct of its business.

As the world leader in the
non-ferrous metals industry
we are aiming to

Article 2

Sumitomo shall manage its activities with foresight and flexibility in order to cope
effectively with the changing times. Under no circumstances, however, shall it pursue
easy gains or act imprudently.
(Quoted from the Sumitomo Goshi Kaisha Administrative Regulations, named “Summary of Business Operations”, formulated in 1928)

SMM Group Corporate Philosophy
Sumitomo Metal Mining Co., Ltd. (SMM), in accordance with the Sumitomo Business Spirit, shall, throughthe performance of sound corporate activities and the promotion of sustainable co-existence with theglobal environment, seek to make positive contributions to society and to fulfill its responsibilities to its
stakeholders, in order to win ever greater trust.

2

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

 ave leading technology and a unique business model that cannot be easily emulated byHother major mineral resource companies Grow sustainably and stably produce a certain amount of profit
 Actively tackle social issues such as the SDGs
 Have employees work with spiritNickel (Ni)Copper (Cu)Annual production capacity ofAnnual production interest of

150 kt300 ktGold (Au)Materials

Participation in new mine
operations through theacquisition of superior interest

Annual profit before tax ofLong-Term Vision25

billion¥through portfolio management

Becomethe World Leader
in the Non-Ferrous
Metals Industry

ProfitAnnual profit attributable to owners of parent of¥Corporate value

150 billion
Vision for2030

SMM Group Management Vision
Based on the principles of compliance, environmental protection and operational safety, SMM Group shallpursue maximum corporate value through the securing of resources and the provision of high-quality
materials such as non-ferrous metals and advanced materials via its global network.

Have a global presence in terms of mineral resource interests and metal production volumes(= be in the global top five)

Targets of our Long-Term Vision

SMM shall, based on respect for all individuals and recognizing each person’s dignity and value, seek to bea forward-minded and vibrant company.

By improving technical capabilities, we shall fulfill our social responsibilities as a manufacturing enterprise.

GRI 2-22

Vision for2020

Growth potential

P.28-29

Sustainability

SMM Group Corporate Philosophy, SMM Group Management Vision

SUMITOMO METAL MINING CO., LTD.

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Introduction

 Introduction

Sustainability at the Sumitomo Metal Mining Group

Our Group carries forward the mine operation and the smelting andrefining that have been Sumitomo’s original businesses since 1590,
placing the Sumitomo Business Spirit at the center of our corporate
conduct. Article 1 of the Sumitomo Business Spirit states that wevalue the trust of society and mutual relationships, and that we willaddress all matters with integrity. As mining must be conducted
where the targeted natural resources are present, typically in projects
that span years or even decades, mine operation in particulardemands that we build and maintain relationships of trust with varied stakeholders in areas of operations as a prerequisite for the continuity of our business.
Based on the Sumitomo Business Spirit, our Group’s Corporate
Philosophy calls for co-existence with the global environment andsociety. It sets out ways of building and maintaining the relationshipsof trust indicated in the Sumitomo Business Spirit, and advocates
respect for all individuals to achieve a forward-minded and vibrantcompany.
The Sumitomo Metal Mining Group Sustainability Policy describes
our stance in working toward the sustainability that are pursuingthrough co-existence with the global environment and society andrespect for all individuals. The policy clearly positions contribution to
the sustainable development of society as an issue for our management, and further defines the aim of our sustainable growth asenhancing the degree of our contribution and ensuring its sustainability. This is in accordance with “Benefit self and benefit others, private and public interests are one and the same,” the spirit that
Sumitomo has inherited, meaning that Sumitomo’s business must
benefit the nation and society, and emphasize harmony with the
public interest.
We have specified issues to be given priority in achieving our
Sustainability Policy, identifying these as material issues. We also set
out the evaluation that we seek to earn from society through our initiatives to tackle these material issues, in the form of Vision for 2030.
In this way, our Group’s stance toward sustainability takes co-existence with the global environment and society and respect for all
individuals as its philosophy. Placing value on social trust and mutual
relationships, we seek to balance the sustainable development ofsociety with sustainable growth for our company.

Sumitomo Business Spirit

SMM Group Corporate Philosophy
Co-existence with the global environment and society

Respect for all individuals

Globalenvironment

Society

PeopleEffective Use of Non-Ferrous Metal Resources

Co-Existence and Mutual Prosperity with
Local Communities

Employees’ Occupational Health and Safety

Climate Change

Rights of Indigenous Peoples

Diverse Human Resources

Significant Environmental Accidents

Human Rights in the Supply Chain

Development and Participation of
Human Resources

Biodiversity

Engagement with Stakeholders

Sumitomo Metal Mining Group Sustainability Policy
Contributing to sustainable development of society and realizing sustainable growth for our company

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SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

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Introduction

 Introduction

Sustainability Issues in the Value Chain GRI 2-6/3-1

Within the value chains of our Group’s businesses, we mapped out sustainability issues in terms of their potential impacts on society. In mapping sustainability issues, we made reference to matters concerning material issues described in the “Global
Reporting Initiative (GRI) Sector Standard for Mining”.*

Business Value Chain
Suppliers

SMM Group

Business activities

Procurement

Research &development

Manufacture, saleand other activities(management of
decommissioned andclosed mines, etc.)

Process andmanufacture offinished products

Usage

Disposal

Employees on our
supply chain

Employees of
the SMM Group

Employees ofcustomers andcontractors

Consumers and users

Local communities
andindigenous peoples

GHG emissions

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Climate adaptation and resilience

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Air emissions

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Biodiversity

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Waste

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TailingsWater and effluents

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Closure and rehabilitation

Sustainability Issues: Impacts on Society(Referred to the “Global Reporting Initiative (GRI)
Sector Standard for Mining.”)

Economic impacts

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End users

Stakeholders affected by the SMM Group

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Rights of Indigenous Peoples

Land and resource rights

Artisanal and small-scale mining

Security practices and human rights

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Critical incident management

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Occupational health and safety

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Employment practices

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Child laborForced labor and modern slavery

Freedom of association and collective bargaining
Non-discrimination and equal opportunity

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Anti-corruption

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Payments to governments

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Public policy

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Local communities

Conflict-affected and high-risk areas*

Customers

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Global Reporting Initiative (GRI) Sector Standard for Miningh‌t‌t‌p‌s://ww‌w.globalreporting.org/standards/standards-development/sector-standard-project-for-mining/

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SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

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Introduction

 Introduction

SMM Group Overview (As of March 31, 2023) GRI 2-2/2-6

Cote (in development)(36.7%)SMM Korea Co., Ltd.
Jinlong Copper Co., Ltd. (27.1%)

 Besshi-Niihama District Division
Toyo Smelter & RefineryNiihama Nickel Refinery
Shisaka Smelting Co., Ltd.
Isoura Plant
Niihama Electronics Co., Ltd.
 Niiham Research Laboratories Battery Research Laboratories

Sumiko Kunitomi
Electronics Co., Ltd.

Morenci (25.0%)

Shanghai Sumiko Electronic Paste Co., Ltd. (69.0%)
Sumico Lubricant Trading (Shanghai) Co., Ltd.

SMM Precision Co., Ltd.
GRANOPT CO., LTD. (51%)

Taiwan Sumiko Materials Co., Ltd.

Dongguan Sumiko Electronic Paste Co., Ltd. (85.0%)
SMM Vietnam Co., Ltd.

Shinko Co., Ltd.

 Nickel Asia Corporation (26.5%)

Coral Bay Nickel Corporation (84.4%)

Sumiko Energy
Materials Co., Ltd.

Harima Refinery

Taganito HPAL Nickel Corporation (75.0%)

 me DistrictO
Division Materials
Laboratories



NagoyaBranchOsaka Branch

Cerro Verde (16.8%)
FIGESBAL SA (25.5%)

Quebrada Blanca (in development)(25.0%)

Ichikawa Research Center

Hyuga Smelting Co., Ltd. (60%)

Northparkes (13.3%)
Candelaria (16.0%)
Ojos del Salado (16.0%)
Mineral Resources Segment	

Copper  Gold

Smelting & Refining Segment	

Copper  Nickel  Hishikari Mine hkuchi Electronics Co., Ltd.
O
Ohkuchi Materials Co., Ltd. (95%)

Other
Materials Segment 	* The location of the head office is shown for eachgroup company in Japan52

1

Equity-method Affiliates

13 District Divisions 80
2

1. Included in two other group companies shown in this page

 Equity-method affiliates* Included in the boundary of the environmental performance data

Japan
Sumitomo Metal Mining Co., Ltd.*

Mineral Resources

Corporation (Philippines) Dongguan Sumiko Electronic Paste Co., Ltd. (China)* Sumitomo Metal Mining Management (Shanghai) Shanghai Sumiko Electronic Paste Co., Ltd. (China)*

Co., Ltd. (China)(China) Sumico Lubricant Trading (Shanghai) Co., Ltd. (China) Granopt Optics Trading (Shenzhen) Co., Ltd. (China)
 Shinko Trading (Zhong Shan) Co.,Ltd. (China) Coral Bay Nickel Corporation (Philippines)* Taiwan Sumiko Materials Co., Ltd. (Taiwan)* Nickel Asia Corporation (Philippines) SMM Korea Co., Ltd. (South Korea) Sumiko Resources Exploration & Development Co., SMM Precision Co., Ltd.*N iihama Electronics Co., Ltd.* Taganito HPAL Nickel Corporation (Philippines)* SMM Vietnam Co., Ltd. (Vietnam)* N.E. Chemcat Corporation

N ippon Ketjen Co., Ltd.* Ohkuchi Electronics Co., Ltd.*Other Ohkuchi Materials Co., Ltd.* MS Zinc Co., Ltd.
 Shisaka Smelting Co., Ltd.* Sumiko Logistics Co., Ltd.* Hyuga Smelting Co., Ltd.* Mitsui Sumitomo Metal Mining Brass & Copper Co.,Ltd.

SUMITOMO METAL MINING CO., LTD.

 Igeta Heim Co., Ltd.* SMM Exploration Corporation (U.S.A.) Jinlong Copper Co., Ltd. (China)

 S umitomo Metal Mining Siporex Co., Ltd.* Acids Co., Ltd.

 SMMA Candelaria Inc. (U.S.A.)

Materials

Materials

Smelting & Refining

Mineral Resources Sumitomo Metal Mining Philippine Holdings

Smelting & Refining Sumitomo Metal Mining (Hong Kong) Co., Ltd.

Sicoxs Corporation

North America

Mineral Resources
Ltd.

8

Asia
 Cordillera Exploration Company Inc. (Philippines)

2. District divisions refer business sites at certain locations which have workers and equipment, and mainly conduct production and research and development activities, provide support andservices for business operations and provide cross-functional management business in a continuous manner (such as Head Office, mines, plants, research centers, branches, business sites
which manage decommissioned and closed mines, sales offices). Consolidated subsidiaries and some equity method affiliates are included.

 Consolidated subsidiaries

N.E. Chemcat Corporation (50%)
Sumitomo Metal Mining Siporex Co., Ltd.

Figures in parentheses indicate percentage interest.
Companies with no percentage written are 100% owned

Consolidated Subsidiaries

Sumico Lubricant Co., Ltd.
Nippon Ketjen Co., Ltd. (50%)

Major Sites of Materials Business Other Major Site / Group Company

Group
CompaniesH ead Office Sumitomo Metal Mining America Inc. (U.S.A.) Sumitomo Metal Mining Arizona Inc. (U.S.A.) SMM Morenci Inc. (U.S.A.) SMM Gold Cote Inc. (Canada) Sumitomo Metal Mining Canada Ltd. (Canada) SMM Resources Inc. (Canada)

Other Regions GRANOPT CO., LTD.* J CO Co., Ltd.* Sicoxs Corporation*

Mineral Resources Quebrada Blanca Holdings SpA (Chile) SMM Cerro Verde Netherlands B.V. (Netherlands) S umiko Technical Service Co., Ltd.* Shinko Co., Ltd.* Compania Contractual Minera Candelaria (Chile) Sumitomo Metal Mining Peru S.A. (Peru) SMMCV Holding B.V. (Netherlands) S umiko Techno-Research Co., Ltd.* Sumiko Energy Materials Co., Ltd.* Compania Contractual Minera Ojos del Salado (Chile) Sociedad Minera Cerro Verde S.A.A. (Peru) S umitomo Metal Mining Engineering Co., Ltd.* Sumitomo Metal Mining do Brasil LTDA. (Brazil)

Smelting & Refining Sumiko Kunitomi Electronics Co., Ltd.* Sumitomo Metal Mining Chile LTDA. (Chile) J apan Irradiation Service Co., Ltd.* SMMQB Holding SpA (Chile) Sumitomo Metal Mining Oceania Pty. Ltd.

 Sumico Lubricant Co., Ltd.*

Sustainability Report 2023

 SMM Quebrada Blanca SpA (Chile) FIGESBAL SA (New Caledonia)(Australia)

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Introduction

 Introduction

SMM Group Business Model GRI 2-6

Business Model—Organic 3-Business Collaboration

MineralResources

Our Mineral Resources Business develops and operates mines in a way that is considerate to the environment and society. Our
Smelting & Refining Business then generates high-quality metal materials from the extracted ores. And, our Materials Business adds
value to these materials that meet the needs of the times. In this way, SMM has a globally unique 3-business collaboration businessmodel in which we operate three businesses — Mineral Resources, Smelting & Refining, and Materials — which collaborate in an
organic way. We are building up competitive capabilities by sharing and utilizing human resources, goods, technology, and information between each business.

Materials

Smelting &Refining

Mineral Resources BusinessSuppliers
Business Partners
Technical andhuman support
Investment(Copper and Gold)

MiningInterest Holders

Ore(Copper and Gold) articipation in planning overseas mine develP
opment and operation



Operation of Hishikari MineSales of copper concentrates

Exploration of new minesAcquisition and transfer of mining interests

Training of mining engineers

Mining andTrading Companies

Ore(Copper and Gold),
Copper Scrap

Interaction of human resources
Sharing of information on
demand for metals

Smelters andRefiners andTrading Companies

Smelting & Refining Business

Steel Dust(zinc)
Investment

Mutual use of technology

Ore

Research & Development

Ore(Copper, Nickel,
Cobalt)Ore(Copper andGold)

Sharing of information onore characteristics(grade, properties, impurities) opper, gold (and other precious metals) smeltC
ing and refiningNickel (Cobalt) smelting and refining

Zinc RecyclingBattery RecyclingTraining of smelting and refining engineers

Metallic materials

Metal Fabricators andTrading Companies

Sharing of information on
the properties of metallic materials(grade, properties, impurities)

Pre-processing
Manufacturers ofWaste Batteries

Usedsecondarybatteries

Metallic
materials

Mutual use of technology
Interaction of human resources
Sharing of information on
demand for metals

Materials Business
Material
Manufacturers andTrading Companies

10

SUMITOMO METAL MINING CO., LTD.

Raw materials

Manufacturing and sales of battery cathodematerials

Manufacturing and sales of advanced materials

Training of materials engineers

Sustainability Report 2023

Smelting & Refining BusinessWe procure copper and gold ores from the market and our Mineral Resources Business, and nickel and cobalt ores from our investment mines for smelting and processing. As for products, metallic materials are sold to metal fabricators and trading companies,
and used for battery cathode materials are supplied to our Materials Business.

Mineral Resources Business

Investment(Nickel)Steel ManufacturingandTrading Companies

Customers
Markets

SMM Group

We invest in copper and gold mines, develop mines with our partners, supply ore to our Smelting & Refining Business, and sellsome of the ore to outside parties. We also own and operate the Hishikari Mine, where we mine gold ore and supply it to our
Smelting & Refining Business.

Batterycathode materials

Advancedmaterials

Battery Manufacturers

Electronic Device
Manufacturers

Materials BusinessIn our battery materials business, we procure metallic materials from our Smelting & Refining Business and other raw materials fromoutside sources, process them into battery cathode materials, and sell them to battery manufacturers. In the advanced materials
business, we have various product groups such as crystal materials, powder materials, and package materials, and we procure raw
materials internally and externally for processing and selling to customers such as electronic device manufacturers.
Competitive capabilities generated by our 3-business collaboration model(1) G reat reduction of procurement risk due to the sharing of resource development regulations, supply and demand trends, andother information(2) P romotion of efficient development of new products, etc. through the sharing of technological information concerning non-ferrous metals and collaborating with customers in the Materials Business(3) A stable supply of highly advanced materials including cathode materials for automobile batteries by collaboration between the
Smelting & Refining and Materials businesses(4) Optimization of characteristics in the materials we supply through collaboration between the Smelting & Refining and Materials
businesses(5) Advancement of knowledge and expansion of mining business opportunities through collaboration between the Mineral
Resources and Smelting & Refining businesses(6) Cutting-edge innovation through the collective wisdom possessed by human resources with diverse backgrounds(7) Building of cyclical systems and expansion of opportunities realized through collaboration between the Mineral Resources,
Smelting & Refining, and Materials businesses(8) Assurance of traceability in terms of quality and the like through a integrated internal supply chain
Recycling
The SMM Group is engaged in various recycling efforts. In the Smelting & Refining Business, we collect steel dust from steel manufacturers and trading companies to produce and sell zinc oxide pellets, which is the raw material for metallic zinc. We also purchasecopper scrap from electric wires and other sources, smelt, refine, and recycle it.
In recent years, as the shift to electric vehicles has rapidly progressed, we have been promoting battery recycling by recovering
nickel and cobalt from used secondary batteries for automobiles in our Smelting & Refining Business, processing them into metallic
materials, and supplying them to our Materials Business to be reused as cathode materials for batteries in our Materials Business. In
addition, we have invented a technology to recover lithium from used secondary batteries. We will continue to promote a variety ofrecycling efforts.

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

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Introduction

 Introduction

Our History

Through a history of over 430 years, we have provided society with the non-ferrous metals that are indispensable
to people’s lives.
Our path toward long-term value creation

The beginning of Sumitomo’s original
business: copper smelting and refining
business

Opening of the Besshi Copper Mine triggers discovery of new value, mineral resources
The Besshi Copper Mine operated continuously for 283 years
from its opening in 1691 and made a huge contribution to
Sumitomo’s development. The opening of the mine presented an opportunity to expand the company’s business toinclude mineral resources business in addition to copper
smelting and refining. The mining technology cultivated at
the Besshi Copper Mine continues to be inherited by SMM’s
Mineral Resources Business as it expands across the globe.

In 1590, the Sumitomo copper business began in
Kyoto as a copper smelting and decorative copperwork operation. By being the first in Japan to perfect a smelting technique known as Nanban-buki
for the separation of copper from silver, Sumitomo
solidified its business foundation.

1500

1600

1700

1800

Adding new metals to the Smelting &Refining and Mineral Resources businesses portfolio
At a time when the importance of gold as aresource was growing, we acquired the management rights for the Kounomai Mine in Hokkaido in
1917. Beginning in 1939, SMM also pioneered andcommercialized the smelting and refining of nickel
in Japan, which had hitherto relied on imports as
nickel could not be smelted domestically.

Entered into the Materials BusinessParticipated in overseas copper mines andacquired interests

In 1960, the electronic materials business was
being watched as a new market, and SMM
began production of germanium dioxide foruse in transistors. Since then, we have continued to provide the market with various electronic materials.

The downsizing of mines in Japan meant that smelting
and refining businesses had to switch to resources procured from overseas. In 1961, SMM signed an investment
and financing contract with Bethlehem Copper Mine,
beginning the company’s involvement with overseas
mines and creating a foothold for the acquisition of mining interests that continues to this day.

Started operation of the Hishikari Mine
With the closure of the Sazare Mine in 1979, the curtain
closed for a time on SMM’s long heritage of mining technology. However, in 1985, operations began at theHishikari Mine and SMM Group’s technology began tochart a new history in a new area. The mine boasted a richgold content ratio, even to date and has become a primary source of profit for the Group, and it also played arole in passing down our mining technology.

1900

Smelting & Refining
Business
Copper smelting
and refining

1590
Started the copper smelting and refining business
Innovation Topic

1 Nanban-buki

In Japan at this time, there was no technology for removing the silver
from copper ore, so copper was sold and exported at copper prices
while it still included silver. Soga Riemon, developed a smelting andrefining technology for separating copper and silver, known as
Nanban-buki. He shared this widely with others in the same business
Nanban-Buki from Kodo Zuroku, Courtesy of the Sumitomo Historical Archives
in Osaka, preventing the loss of wealth.

Mineral Resources
Business

Copper mines

1905
Relocated copper
smelting and refining
from the Niihama coastto the Shisaka Island

1971
Started production at the Toyo Smelter & Refinery
Nickel smelting
and refining

1939
Started the nickel
smelting and refining
business

1691
Opened the Besshi Copper Mine1973
Closed the Besshi Copper Mine
Gold mines

1917
Started the gold minebusiness

1973
Closed the Kounomai Mine
Overseas copper
mines
Kounomai Mine

1961
Investment and financing contract signed for the Bethlehem Copper Mine

Besshi Copper Mine in the
Meiji Period

1979
Closed the Sazare Mine
1985
Started operations at the Hishikari Mine1986
Acquired interest in the Morenci Copper Mine.
Full-scale investment in overseas mines

Materials Business
Materials

Sustainability
TopicsSocialSetting

12

1966
Started lead frame businessAround 1650
Monjuin Shiigaki

1894
Large-scale reforestation operations

1939
Overcoming smoke pollution at Shisaka Island

The Sumitomo Business Spirit, which continues to thisday, has its origins in the Monjuin Shiigaki, written by
the founder of the Sumitomo family, Sumitomo
Masatomo (1585–1652), in his later years to explain Courtesy of the Sumitomo
the merchant’s frame of mind.
Historical Archives

Large-scale reforestation operations started after Iba Teigo, the second
Director-General, became manager of the Besshi Copper Mine. At
peak, more than two million trees were being planted annually and
Courtesy of the Sumitomo Image courtesy of
Mt. Besshi once again overflowed with greenery.
Historical Archives
Sumitomo Forestry Co., Ltd.
The Besshi Copper Mine in the past (left) and today (right)

We realized zero emissions of sulfur dioxide gas, which was a root cause of thesmoke damage, becoming the first in the world to solve the problem of smoke
damage that was afflicting copper smelters all over the globe.

Around 1700

The majority ofNagasaki trade

SUMITOMO METAL MINING CO., LTD.

1960
Entered into the materials
business

Sustainability Report 2023

In the Edo period, about half of all copper produced in Japan for international
trade was exported through Nagasaki. In the year 1698, Sumitomo’s annual production reached about 1,500 tons, a quantity that accounted for one quarter ofJapan’s copper production.
Export box containing copper bars from Nagasaki (model),courtesy of the Sumitomo Historical Archives

Around 1900

The modernization ofindustry

Starting in the Meiji Period, with the growth in demand for communicationslines, wires for electric lighting, and copper alloy fabricated products, domestic
demand for copper increased significantly. The Besshi Copper Mine, which introduced Western-style smelting and refining, supported the industry in Japan.
Besshi Mine Upper Railway, Courtesy of the Sumitomo Historical Archives

SUMITOMO METAL MINING CO., LTD.

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Introduction

 Introduction

Our History

Our path toward long-term value creation

Corporate reform since the JCO criticality accident

Return to core business

Promoting the growth strategy

Began to increase the production of battery materials

Long-term vision to become a world leader in the non-ferrous metals industry

In September 1999, a criticality accident occurred at SMM subsidiary, JCO Co., Ltd., which manufactured fuel for nuclear
power generation. This was a turning point in the management of the SMM Group, whereupon it reflected and in 2000
formulated the Corporate Reform Plan. We have thoroughly
fostered and instilled compliance and a culture of safety, andeven though more than 20 years have passed since the accident, we will not forget and will pass the lessons learnt on toyounger generations.

Since FY2002, following the Corporate
Reform Plan, in order to improve our profitability, we have been further promoting
business selection and concentration toreform the business and cost structure of
the SMM Group to build a corporate structure strong enough to withstand international competition even in a severebusiness environment.

From FY2004 onward, we have steered our course toward
the growth strategy by promoting large-scale projects
and concentrating management resources in growthareas to expand and strengthen our core businesses. In
FY2010, we shifted our business model to three core businesses: Mineral Resources, Smelting & Refining, andMaterials. We have continued to implement our growthstrategy to enhance our corporate value andcompetitiveness.

We have been promoting high-performance materials for automobile batteries (cathode materials), which are expected to grow significantly in the future, and gradually increasing production capacity byleveraging our strength of an integrated process from the procurement of nickel raw material through to processing (3-business collaboration synergy).

In the 2018 3-Year Business Plan, we set the long-term vision of becoming the world leader in the
non-ferrous metals industry and worked to strengthen our growth foundation through the promotion of large-scale projects, reinforced collaboration among our three businesses, andstrengthened our corporate functions. In the subsequent 2021 3-Year Business Plan, under thetheme of “renewed challenge for change,” we will tackle 4 Challenges to realize our long-term
vision.

2000
Smelting & Refining
Business
Copper smelting
and refining
Nickel smelting
and refining

1993
Conversion of nickel refining process to MCLE technology
Innovation Topic

2 MCLE2005
Started production at Coral Bay Nickel
Corporation

2013
Started production at Taganito HPAL Nickel
Corporation

Matte and mixed nickel-cobalt sulfides (MS) were dissolved in chlorine at high temperature, then electrolysis was used to produce high-purity nickel.
MCLE was more competitive than other methods in terms of cost, but it posed significant operational challenges, and only a few other producers outsideof SMM had commercialized similar technology.

Innovation Topic

3 The HPAL method

This technology enabled the recovery of nickel from nickel oxide ores that had been conventionally difficult to process. The SMM Group was the first company in the world to apply it
successfully on a commercial scale. In addition to contributing to the realization of in-house procurement and the effective use of nickel resources, we also carried out activities that
contribute to society in the Philippines, where the operations are based.

Mineral Resources
Business
Gold mines

Overseas copper
mines

2006
Started production at the Pogo Gold Mine
1992
Capital participation in the Candelaria Copper Mine

2006
Started production at the Cerro Verde Copper Mine2017
Acquired interest in the Cote Gold Mine
2015
Started production at the
Sierra Gorda Copper Mine2016
Acquired additional interest in
the Morenci Copper Mine

2018
Transfered Interests in the PogoGold Mine2019
Acquired interest in the Quebrada Blanca
Copper Mine

2022
Began lower orebody mining
at Hishikari Mine

2024
Scheduled to begin production at Cote Gold
Mine

2022
Transfer of Interests in Sierra Gorda
Copper Mine
As a result of a Group-wide review of its asset portfolio, after considering various strategic options,
including the sale of its interests, SMM transferred
all of its interests in the Sierra Gorda Copper Mine.

2023
Began producing bulk copper
concentrates at the Quebrada
Blanca 2 Project

Materials Business
Materials

2001
Started production of cathode materials for automobile batteries

2014
Established Sumiko Energy Materials Co.,
Ltd., increased production of battery
materials and SAW filter LT/LN

2016
Decided to withdraw from the lead frame business
Management resources were reallocated to expand and strengthen battery materials and other productsthat are expected to grow in the future.

2022
Took over lithium iron phosphate (LFP)
battery materials business

2025
Scheduled to complete construction of a new plant toincrease production of battery materials (cathode materials) by 2,000 tons/month

Sustainability Topics
1999
The JCO criticality accident

SocialSetting

14

Around 1980

The spread of stainless steel

SUMITOMO METAL MINING CO., LTD.

Sustainability Report 2023

2008
Formulated “Vision
for 2020”

2012
Reviewed “Vision for 2020”

Nickel, a product of the SMM Group, was used as a raw material in stainless steel
and special steels. These materials were used in various areas such as communications, medical, construction materials, and the generation of electricity.
Demand for stainless steel picked up after 1987, and Hyuga Smelting Co., Ltd.
expanded ferronickel production.

2015
Reviewed “Vision for 2020”

Around 2000

Rapidly rising demand for cathodematerials for automobile batteries

2019
Reconsidered theLong-Term Vision

2020
Formulated “Vision for
2030”

2022
Reorganized the sustainability
promotion framework

Against the background of rising environmental awareness, demand rose rapidly for cathodematerials for hybrid and electric vehicle secondary batteries. Through close collaboration withcustomers, the SMM Group worked to supply high performance, safe battery cathode materials in addition to fulfilling its obligation as a producer of nickel and cobalt, the raw materialsof battery cathode materials.

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