Integrated Report 2023
Sumitomo Metal Mining Co., Ltd.

The report is printed using non-VOC ink.

Integrated Report 2023

At a Glance (FY2022)

Three Core Businesses
Net Sales(consolidated)

More than430 years of history

Profit before Tax(consolidated)

1,423 billion¥

229.9 billion¥

The second longest history of Japan’slisted companies

Mineral Resources Business

P.54-59

Leveraging over 300 years of mine development and operational experience and technologies, we operate the Hishikari Mine, Japan’s largest goldmine, with a focus on sustainability. We participate in the operation of overseas mines in which we hold interests to produce copper, gold, and otherresources to provide materials and in order to secure mineral resources. We
are also working to acquire and develop new superior mines.
Main Products

Equity Ratio

60.3%
Due to the nature of our business, we aim
to maintain an equity ratio of 50% ormore as a sound financial position thatcan withstand temporary cash outflows.

Employees(consolidated)

7,330

Dividend PayoutRatio

Total Assets

2,700 billion¥Our businesscountries and regions

35.1%

Manufacturing Bases

Cumulative amount of gold
produced from Hishikari Mine

264 tons,

No. 1 in Japan

Global Class 1 nickel
interest production

NO.

5* Source: Research by SMM

P.60-65

Main Products

 opper, Gold, Silver, Electrolytic Nickel, Electrolytic Cobalt, Ferronickel, Palladium,C
Chemical Products

Materials Business

P.2-3

Japan’s only
operating gold mine

Smelting & Refining BusinessFor over 430 years since the start of our copper smelting and refining business in 1590, we have stably supplied a variety of metal materials to a wide
range of industries. We engage in business on the strength of our advanced
smelting and refining technology, which was the first in the world toachieve the successful recovery of nickel from low-grade nickel oxide ore
using the High Pressure Acid Leach (HPAL) method on a commercial basis.

7 Mines
8 Smelters and Refineries
20 Materials Plants

14Gold and Silver Ore, Copper Concentrates, Copper, Gold, Molybdenum

Nickel-based
cathode materials forsecondary batteries

Top classglobal share* Source: Research by SMM

P.68-73

We develop and produce highly advanced materials used in wide-ranging
fields including automobiles, energy, environment, communications andinformation, and home appliances, along with products that contribute tocarbon neutrality.

Main Products

Battery Materials, Thick Film Paste, Powder Materials, Crystal Materials, Thin FilmMaterials, Magnetic Materials, Package Materials, Oil Refining Catalysts, Automotive
Catalysts, Autoclaved Lightweight Concrete, Lubricants(As of March 31, 2023)

SUMITOMO METAL MINING CO., LTD.

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SMM Group Overview (As of May 1, 2023)

Group Companies
SMM Korea Co., Ltd.

Cote (in development) (36.7225%)52
Equity-method Affiliates 13

Consolidated Subsidiaries

Jinlong Copper Co., Ltd. (27.1%)
Morenci (25.0%)

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

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

 Nickel Asia Corporation (26.5%)
Coral Bay Nickel Corporation (84.375%)

Mineral Resources Segment
Copper  Gold

Taganito HPAL Nickel Corporation (75.0%)

Smelting & Refining Segment
Copper  Nickel  Materials Segment
Major Sites of Materials Business

Cerro Verde (16.8%)
FIGESBAL SA (25.5%)
Northparkes (13.3%)

 Consolidated subsidiaries Sumiko Technical Service Co., Ltd.

Sumitomo Metal Mining Co., Ltd.

 Sumiko Techno-Research Co., Ltd.
 Sumitomo Metal Mining Engineering Co., Ltd.

Asia S umitomo Metal Mining America Inc. (U.S.A.)

Smelting & Refining

Mineral Resources SMM Morenci Inc. (U.S.A.) Acids Co., Ltd.

 Cordillera Exploration Company Inc. (Philippines) SMM Gold Cote Inc. (Canada)

Smelting & Refining S umitomo Metal Mining Canada Ltd. (Canada) SMM Exploration Corporation (U.S.A.) Jinlong Copper Co., Ltd. (China) Hyuga Smelting Co., Ltd.

 Sumitomo Metal Mining Management (Shanghai)Co., Ltd. (China) Mitsui Sumitomo Metal Mining Brass & Copper Co.,Ltd.

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

Materials

 Coral Bay Nickel Corporation (Philippines) SMM Precision Co., Ltd.

 Nickel Asia Corporation (Philippines) N.E. Chemcat Corporation Taganito HPAL Nickel Corporation (Philippines) Ohkuchi Electronics Co., Ltd.

 Sumitomo Metal Mining Philippine Holdings
Corporation (Philippines) Ohkuchi Materials Co., Ltd.

Candelaria (16.0%)

 SMMA Candelaria Inc. (U.S.A.) Sumiko Resources Exploration & Development Co.,Ltd.

 Sumiko Logistics Co., Ltd.

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

Mineral Resources Japan Irradiation Service Co., Ltd.

 Shisaka Smelting Co., Ltd.

Quebrada Blanca (in development) (25.0%)

North America

Mineral Resources

 MS Zinc Co., Ltd.

 Other Major Site / Group Company

Ojos del Salado (16.0%)

 Equity-method affiliates

Japan

Other(China) GRANOPT CO., LTD.

Materials

 Sicoxs Corporation

 Dongguan Sumiko Electronic Paste Co., Ltd. (China)

 Shinko Co., Ltd.

 Shanghai Sumiko Electronic Paste Co., Ltd. (China) Sumiko Energy Materials Co., Ltd.

 Sumico Lubricant Trading (Shanghai) Co., Ltd. (China) Sumiko Kunitomi Electronics Co., Ltd.

 Granopt Optics Trading (Shenzhen) Co., Ltd. (China) Sumico Lubricant Co., Ltd.

 Shinko Trading (Zhong Shan) Co.,Ltd. (China) Sumitomo Metal Mining Siporex Co., Ltd.

 Taiwan Sumiko Materials Co., Ltd. (Taiwan)

 Niihama Electronics Co., Ltd.

 SMM Korea Co., Ltd. (South Korea)

 Nippon Ketjen Co., Ltd.

 SMM Vietnam Co., Ltd. (Vietnam)

 S umitomo Metal Mining Arizona Inc. (U.S.A.) SMM Resources Inc. (Canada)

Other Regions Igeta Heim Co., Ltd.

Sumiko Kunitomi
Electronics Co., Ltd.

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

Mineral Resources Compania Contractual Minera Candelaria (Chile) Compania Contractual Minera Ojos del Salado (Chile) S umitomo Metal Mining Chile LTDA. (Chile)

Sumiko Energy Materials Co., Ltd.
Harima Refinery SMMQB Holding SpA (Chile) SMM Quebrada Blanca SpA (Chile) Quebrada Blanca Holdings SpA (Chile) S ociedad Minera Cerro Verde S.A.A. (Peru) S umitomo Metal Mining do Brasil LTDA. (Brazil)
 S umitomo Metal Mining Oceania Pty. Ltd.
(Australia)

 S MM Cerro Verde Netherlands B.V. (Netherlands)

NagoyaBranch Sumitomo Metal Mining Peru S.A. (Peru)Ome District Division Materials Laboratories

Ichikawa Research Center

Osaka Branch
Hyuga Smelting Co., Ltd.
(60%)

H
 ead OfficeSumico Lubricant Co., Ltd.

 SMMCV Holding B.V. (Netherlands)

N.E. Chemcat Corporation (50%)

Smelting & Refining FIGESBAL SA (New Caledonia)

Other 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

 ishikari MineH
Ohkuchi Electronics Co., Ltd.
Ohkuchi Materials Co., Ltd. (95%)

Nippon Ketjen Co., Ltd. (50%)
Sumitomo Metal Mining Siporex Co., Ltd.
Sicoxs Corporation JCO Co., Ltd.
* The location of the head office is shown for each group company in Japan.

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SUMITOMO METAL MINING CO., LTD.

Integrated Report 2023

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Integrated Report 2023

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Introduction

Special Features

Special Feature 1: Digital Transformation (DX) at the SMM Group  

P.78Accelerating DX

SMM takes on

We are accelerating Group-wide DX through means including the establishment of a Digital Transformation Committee
in April 2021 and the launch of a Digital Transformation Department in July 2022 as an organization dedicated to implementing DX-related measures. Through these, we will integrate the separate DX-related initiatives that have been carriedout in different areas of the Group, improving our Group-wide DX infrastructure and strengthening competitiveness.

change andchallenges
Special Feature 2: Initiatives of the Carbon Neutrality Committee  Our 2021 3-Year Business Plan focuses on measures to be taken
to respond to, and resolve, the three major issues impacting ourbusiness operations in recent years: the accelerating transition tocarbon neutrality, adaptation to digital transformation (DX), andincreasing difficulty of securing human capital. These are allmaterial issues that cannot be resolved merely by continuing earlier means of response. Moreover, if we were to “stumble” in theearly stages, failing to live up to the expectations held of us by
our stakeholders, we could suffer a loss of competitiveness andeventually be shunned by the market. The central theme of our2021 3-Year Business Plan is “Renewed Challenge for Change.”
Here, we view “change” not as modification in the sense of making modest changes to mechanisms long in place but rather assomething altogether new: total reform, under which our challenge begins.
This publication brings together “Special Feature” pages that
address the three issues of carbon neutrality, DX, and human capital strategy.

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SUMITOMO METAL MINING CO., LTD.

Integrated Report 2023

P.99

Addressing carbon neutrality
To strengthen our ability to take action against climate change and to accelerate our initiatives aimed at
reducing greenhouse gas (GHG) emissions, in 2022 we launched the Carbon Neutrality Committee.

Special Feature 3: Human Resources Strategy Transformation and Tradition – Preservation through Transformation –  

P.128

Human capital strategy
Securing, developing and utilizing human capital have become extremely critical issues for ensuringcorporate survival. Today we are undertaking a variety of measures with a focus on intangible
aspects to resolve these issues: for example, we are reviewing our personnel systems, raising
employee awareness, and enhancing our educational programs.

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Introduction

Contents		At a Glance Continuing to Support Value Creation1	Three Core Businesses

100	Corporate Governance2	SMM Group Overview

112	Round-Table Discussion with Outside Directors Introduction

We asked our outside directors what their role is in creating an
open and vibrant organizational climate and securing,fostering, and utilizing powerful human capital.

4	Special Features
6

Integrated Report 2023 Concepts

Contents

114	Tax Governance Vision for the SMM Group8	The Sumitomo Business Spirit and the SMM Group
Corporate Philosophy9	Long-Term Vision

116	Compliance120	Risk Management
123

Quality Assurance

128

Special Feature 3 Human Resources Strategy		Transformation and Tradition–PreservationthroughTransformation–

10	Vision for 2030
12	Vision for 2030 – Formulation Approach13	Message from the President The SMM Group’s System for Value Creation
20	Our History of Value Creation
24	The Global Non-Ferrous Metal Industry and the SMM
Group
28	Value Creation Process
30	Value Creation Process (Business Model) Explanation
32	The SMM Group’s Capital:
Seven Competitive Strengths Cultivated by theSumitomo Business Spirit
34	Risks and Opportunities
36	Financial and Non-Financial Highlights

134	Directors and Audit & Supervisory Board Members Data Section136	FAQ
138	Glossary142	Eleven-Year Financial Summary
144	Consolidated Statements of Financial Position/
Consolidated Statements of Profit or Loss/
Consolidated Statements of Comprehensive Income
148	Consolidated Statements of Changes in Equity
151	Consolidated Statements of Cash Flows153	Corporate Data and Investor Information
154

Emphasizes explanations of the initiatives in the first year of the 2021 3-Year Business Plan which
has the theme of Renewed Challenge for ChangeThe Integrated Report 2023 is composed of five chapters: “Vision for the SMM Group,” “The SMM Group’s System for
Value Creation,” “Medium- to Long-term Strategy for Value Creation,” “Continuing to Support Value Creation,” and “DataSection.” We have strived to make the content more comprehensive yet easy-to-read for our stakeholders, and we haveenhanced the information to take into account the perspectives of investment decisions regarding our stock.
In the special feature, we introduce Renewed Challenge for Change, focusing on the three material issues of the2021 3-Year Business Plan: carbon neutrality, digital transformation (DX), and human capital strategy.
To provide stakeholders with a better understanding of our human capital initiatives, we have included a moredetailed description in the special feature on our human capital strategy, which has been a topic of growing interest
among our stakeholders in recent years, as well as a roundtable discussion with our outside directors.
In addition, up to now copper refining technology has not been covered very much, so we have put together information on this in the column Technological Changes at the Toyo Smelter & Refinery, which focuses on the Toyo
Smelter & Refinery’s efforts to increase production volume through the accumulation of technology.
Moreover, we have clarified the division of roles of reports by disclosing detailed sustainability-related data in a
Sustainability Report to be issued from this year. For this Integrated Report, we included material sustainable information and further improved the report’s readability.
(Sustainability Report 2023 (https://www.smm.co.jp/en/sustainability/library/sustainability_report/))Throughout, the report expresses the Group’s high goals and commitment to value creation and our long-term
vision of becoming the world leader in the non-ferrous metals industry. And along with showing our medium- to longterm strategy to create value, the report also shows SMM’s commitment to sustainability.

Attestation of Validity Medium- to Long-Term Strategy forValue Creation
40	Review of Past 3-Year Business Plans
42	Strategy and Resource Allocation
54	Mineral Resources Business60	Smelting & Refining Business66	Technological Changes at the Toyo Smelter & Refinery

68	Materials Business
74	Research & Development
77	Battery Recycling

78

Special Feature 1	DigitalTransformation (DX)at the SMM Group82	Sustainability Management at the Sumitomo MetalMining Group86	Vision for 2030, Material Issues, KPIs (Indicators andGoals)
1 Effective Use of Non-Ferrous Metal Resources88
2 Climate Change
89
3 Significant Environmental Accidents
92		4 Biodiversity
5 Employees’ Occupational Health and Safety
93
6 Diverse Human Resources
94		7 Development and Participation of Human Resources
8 Engagement with Stakeholders
95
9 Co-Existence and Mutual Prosperity with Local
96
Communities
10 Rights of Indigenous Peoples
97
11 Human Rights in the Supply Chain
98

99

6Special Feature 2 Initiatives of the Carbon Neutrality		Committee

SUMITOMO METAL MINING CO., LTD.

Integrated Report 2023

Editorial Policy

Scope of the Report

While interest in social and environmental issues has been growing in recentyears, with the SDGs garnering attention, companies are expected not only tocreate economic value but also to work to resolve these social and environmental issues.
Since 2016, we have published these integrated reports to serve as a tool for
dialogue with stakeholders inside and outside the Group and to help stakeholders attain a deeper understanding of the SMM Group’s initiatives toward sustainable growth and maximization of corporate value.
In editing this Sumitomo Metal Mining Integrated Report 2023, the eighth edition of our Integrated Report, we have reviewed the articles that have been accumulated so far focusing on priority and, in conjunction with the publication of
the Sustainability Report, we have carefully selected particularly important information on sustainability to be disclosed.
We have also included three special feature articles on the three material issuesof the 2021 3-Year Business Plan that are of great interest to our stakeholders: carbon neutrality, digital transformation (DX), and human capital strategy. We hopethese articles will help you understand our efforts to address each of these issues.
In this report, CBNC and THPAL are acronyms for Coral Bay Nickel Corporationand Taganito HPAL Nickel Corporation, respectively.
Also, unless otherwise stated, the term “ton” refers to a metric ton.

Sumitomo Metal Mining Co., Ltd. (SMM)
The Sumitomo Metal Mining Group SMM and consolidated subsidiaries
Economic and Environmental Topics SMM, consolidated subsidiaries andequity-method affiliates
Social Topics SMM and consolidated subsidiaries
Publication Date
September 2023 Next scheduled publication: November 2024 (Previous publication: November 2022)
Period Covered(Some activities before or after the following periods have also been included)
Japan: April 1, 2022–March 31, 2023
Overseas: January 1, 2022–December 31, 2022

Inquiries
Public Relations & Investor Relations Department, Sumitomo Metal Mining Co., Ltd.
11-3, Shimbashi 5-chome, Minato-ku, Tokyo 105-8716, Japan
Tel: +81-3-3436-7705 Fax: +81-3-3434-2215

Referenced Guidelines

Disclaimer
The forward-looking statements in this integrated report, including
business result forecasts, are based on information available to theCompany and on certain assumptions deemed to be reasonable as ofthe date of release of this report. Actual business results may differ substantially due to a number of factors.
* This document is the English version of the Japanese original.

In compiling this Report, we have referred to the International Integrated
Reporting Framework1 and the Guidance for Collaborative Value Creation2 to provide an easy-to-understand explanation of the capital and business model usedin the value creation process, and the value provided to stakeholders.
1. An international corporate reporting framework from the International Financial
Reporting Standards Foundation (IFRS) that tells a company’s short-, medium-, andlong-term value creation story.
2. Guidance compiled by the Ministry of Economy, Trade and Industry (METI) to help
companies and investors deepen mutual understanding through information disclosure and dialogue, and to encourage action toward value co-creation.

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