2024-05

15 9 0
Brand Tagline

Development of the nanban-buki techniqueand laying the foundation for
Sumitomo’s business operations

Logo

The resources that we unearth are smelted and refined,

Taking the shape “SMM,” our logo encapsulates our

becoming materials that shape the future.

pride in conducting business together with mining, and“MINING THE FUTURE” is a declaration of the value

our willingness to tackle major social issues, to pioneer

we provide, the meaning of our existence, and our will topaths, and to overcome. “SMM” also symbolizes ourcontinue providing materials that will shape the future.

three-business collaboration among Smelting andWe will use this statement alongside our Company logotype

Refining, Mineral Resources, and Materials.

and logo to present a unified expression of our brand.
*These marks are registered in japan.

In 1590, Soga Riemon established a copper smelting andcoppersmithing business in Kyoto under the trade name
Izumiya. Shortly thereafter, he developed nanban-buki, asmelting technique for separating silver from unrefinedcopper. As copper smelting techniques in Japan wererudimentary in those days, copper containing silver impurities
was exported, resulting in a loss of wealth. Establishment of
the nanban-buki technique made it possible to recover thissilver, and Izumiya prospered. The business grew anddeveloped, laying the foundation for Sumitomo’s business
operations. Soga Riemon, who established this revolutionary
technology, chose to widely disclose his discovery to others in
the copper trade rather than monopolize it. This accelerated
development of the copper industry.
A woodblock print depicting the nanban-buki technique from Kodo Zuroku(Illustrated Book on the Smelting of Copper) [Sumitomo Historical Archives]

Kanki-ko (Pit of Exultation), the first pit mouth of the Besshi Copper Mine

16 91
Opening of the Besshi Copper Mine triggers
discovery of new value, mineral resources

INDEX
5 Development of the nanban-buki technique and laying the foundation for Sumitomo’s business operations
Opening of the Besshi Copper Mine triggers discovery of new value, mineral resources
6 Modernization of the mining business through the introduction of Western technologies
Relocation of the smelter to Shisakajima Islands and pioneering of environmental protection
7 A copper smelter and refinery that met domestic demand while achieving global competitivenessHishikari Mine inherits SMM’s traditions and technologies
8 Focus on securing resources through equity investments in overseas copper mines
Use of the MCLE method to realize high production efficiency and cost competitiveness in nickel production
9 Efficient utilization of resources through commercialization of HPAL technology
New plant established in an earthquake-stricken area to support reconstruction and the future of the materials business4- Mined new values -In 1690, 100 years after development of the nanban-buki technique,large outcrops of copper ore were discovered in Iyonokuni (inpresent-day Ehime Prefecture). Seizing the opportunity presented
by this discovery, in 1691 the Sumitomo family opened the Besshi
Copper Mine. This marked a shift in emphasis from copper
smelting, Sumitomo’s principal business up to that time, to a new
business of unlocking the value of copper ore. Along the way,
Sumitomo would face crises including a decrease in output and thethreat of requisition by the Meiji government but managed to avert
these threats through various initiatives. Furthermore, Sumitomo
undertook modernization of mining and transportation. The mine
operated continuously for 283 years until 1973, providing afoundation that underpinned Sumitomo’s development. Mining
technologies cultivated at the Besshi Copper Mine continue to bepassed down through the generations and are used in today’s
global mineral resources business.

- Mined new values -5

18 8 819 7 1Modernization of the mining business throughthe introduction of Western technologies

A copper smelter and refinerythat met domestic demand
while achieving global competitivenessIn 1874, Sumitomo engaged the services of Louis Larroque, aFrench mining engineer, for the purpose of increasing
production capacity at the Besshi Copper Mine. On the basis of
Besshi Mine Prospectus, a report prepared by Larroque,
Sumitomo pursued modernization of mining and transportation
by introducing Western technologies for, for example, extensionof the eastern sloping mine shafts to extract ore deep
underground, excavation using dynamite, introduction of a rock
drill, and the laying of a railroad. These initiatives resulted inincreased ore production at the Besshi Copper Mine. The
smelter was relocated from the Besshi mountains to a coastal sitein Niihama, and a Western-style copper smelter began full-scale
operation in 1888. Subsequently, with the opening of the Besshi
Copper Mine railway linking the mines and Niihama,transportation capacity dramatically increased. The volume ofore processed at the smelter also grew substantially.
The Niihama Smelter circa 1990 [Sumitomo Historical Archives]

The Shisakajima Smelter in 1905 [Sumitomo Historical Archives]

6- Mined new values -19 0 5

When Japan entered the post-war period of high economic growth,
domestic demand for copper rose sharply. To meet this demand while
simultaneously increasing international competitiveness, in 1971
Sumitomo established the world’s most advanced copper smelter (theToyo Smelter & Refinery). The flash furnace at the Toyo Smelter &Refinery was lit in a ceremony using a flame taken from the smelting
furnace at Shisakajima Islands, and before that from a calcination kiln
at the Besshi Copper Mine. Thus, as the inheritor of the Sumitomo
spirit, the Toyo Smelter & Refinery championed further technologicalinnovation by applying SMM’s accumulated experience in smelting
technology. Today, more than 40 years after the start of operation, theToyo Smelter & Refinery has developed into a facility that, as SMM’s
principal smelter, is globally competitive in terms of production
capacity and cost. The plant is also utilized as a site for interaction andinformation sharing among the Group’s engineers and strives tomaintain and improve the Group’s technological capabilities.

The Hishikari Mine, which has been producing gold ore since 1985

The Toyo Smelter & Refinery shortly after it opened

19 8 5

Relocation of the smelter to Shisakajima Islands
and pioneering of environmental protection

Hishikari Mine inherits SMM’s traditions
and technologies

Accompanying technological innovation driven bymodernization, annual copper output from the Besshi Copper
Mine reached a record high of 3,500 tons in 1897, a six-foldincrease from 30 years earlier. However, a critical situation arose
because sulfur dioxide gas produced during smelting had a
harmful effect on crops in the area surrounding the Niihama
Smelter. Accordingly, Iba Teigo, the manager of the Besshi
Copper Mine, decided to once again relocate the smelter, thistime from Niihama to Shisakajima Islands, an uninhabited islandin the Seto Inland Sea, in order to prevent further smoke damage.
The relocated smelter started operation in 1905. Although thisregrettably did not prove to be a definitive solution, Sumitomocontinued to invest heavily, in terms of both financial resources
and time, in research to solve this problem, which plagued copper
smelting facilities worldwide. In 1939, Sumitomo became the firstcompany in the world to achieve recovery of sulfur dioxide gas,
the cause of the smoke damage.

The 1970s were a watershed for SMM. The closure of the
Besshi Copper Mine in 1973 and of the copper mine at
Sazare in 1979 brought about a hiatus in the domestic
mineral resources business, which had operated continuously
for nearly 300 years.
However, a gold deposit was discovered in Hishikari Town
(now Isa City) in the Isa District of Kagoshima Prefecture in
1981, and ore production at the newly developed Hishikari
Mine began in 1985. The Hishikari Mine, which produces
high-grade gold ore, remains in operation and continues tosupport SMM’s growth, carrying on the history of themineral resources business begun at Besshi Copper Mine andplaying an important role in maintaining SMM’s
accumulated mining technologies.

- Mined new values -7

19 8 62005

Focus on securing resources through equity
investments in overseas copper mines

Efficient utilization of resources throughcommercialization of HPAL technology

In the 1980s, copper mining operations worldwide suffered as
demand and prices stagnated. The copper productionindustry in Japan smelted ore imported from overseas,
necessitating procurement of a stable supply of ore underfavorable terms and conditions. SMM devised a policy of
securing resources by taking equity stakes in overseas copper
mines and in 1986 decided to invest in the Morenci Copper
Mine in the United States. SMM subsequently acquired
equity stakes in the Candelaria Copper Mine in Chile in 1992
and in the Northparkes Copper Mine in Australia in 1993.
Going forward, SMM intends to accelerate global businessdevelopment, including the securing of resources fromaround the world.

In 2005, SMM became the first company in the world tosucceed in commercial production of nickel intermediateusing high-pressure acid leach (HPAL) technology*. This
breakthrough, which occurred at Coral Bay Nickel
Corporation (CBNC), a production site on the island of
Palawan in the Philippines, has resulted in effective utilizationof limited nickel resources and a stable supply of
cost-competitive nickel raw material. In 2013, Taganito HPAL
Nickel Corporation (THPAL) on the island of Mindanao in
the Philippines began production as SMM's second HPAL
plant. SMM is pursuing further business expansion.
*HPAL is a refining technology for recovering nickel from low-grade
oxide ores. The oxide ores are subjected to high temperature andpressure and reacted under stable conditions with sulfuric acid to
produce a nickel-rich refining intermediate.
The Morenci Copper Mine in Arizona, the United States

The nickel plant following conversion to the MCLE method

19 9 3- Mined new values -The Sumiko Energy Materials Co., Ltd. Nahara Plant, which has introduced state-of-the-art facilities

2 014

Use of the MCLE method to realize
high production efficiency andcost competitiveness in nickel production

New plant established in an earthquakestricken area to support reconstruction
and the future of the materials business

While expanding copper production, in 1933 Sumitomo began
development of nickel production technology. SMM pioneered
domestic refining of nickel, a metal for which Japan had
previously depended on imports, succeeding in producing
nickel for the first time at the Shisakajima Islands Smelter in1936 and commercializing nickel refining in 1939. Afterchanges in the production process implemented to increase
production during the period of high economic growth, in
1993 the plant converted to MCLE*, a processing method thatoffers high production efficiency and cost competitiveness.
This production process is highly valued as an excellent
wet-smelting technology and remains in use to this day.

SMM is paying keen attention to the growing demand forelectric vehicles (EVs), which represent a promising new avenue
for expansion of the nickel business. Lithium nickel oxide isused as the raw material for a key component of thelithium-ion batteries used in EVs. Accordingly, in 2014 SMM
established Sumiko Energy Materials Co., Ltd. in order toincrease lithium nickel oxide production. For its new
production site, Sumiko Energy Materials chose Nahara Town
in the Futaba District of Fukushima Prefecture, from which all
residents had been compelled to evacuate because of the
Fukushima Daiichi Nuclear Power Plant accident caused by
the Great East Japan Earthquake in March 2011. Out of adesire to contribute to the reconstruction of Fukushima, SMM
built a plant in Nahara that engages in raw materials
production to support the sustainable society of tomorrow.

*MCLE: Matte chlorine leaching electrowinning. Nickel matte andnickel-cobalt mixed sulfide are dissolved in chlorine to produce
high-grade nickel by electrolysis.

8

The Coral Bay Nickel Corporation plant on the island of Palawan in the Philippines- Mined new values -9

Today and Beyond
Producing state-of-the-art materials
that lead to socially beneficial solutions to pressing issues

From development of the nanban-buki technique by Soga
Riemon and the opening of the Besshi Copper Mine toplacing environmental considerations at the heart ofbusiness, the effective utilization of resources throughtechnological innovation, and the handing down oftechnologies developed and perfected through successive
generations, “new value” mined by Sumitomo Metal Mining
and its forerunners for 430 years has led to socially beneficial
solutions to pressing issues. Today, SMM continues tocontribute to society by creating state-of-the-art materials
that enrich people’s lives. By faithfully adhering to thissocially responsible stance, we aim to pioneer a new era.

By virtue of SMM’s crystal
technology and processing
technology, these crystal materials(lithium tantalite and lithium
niobate) offer competitive advantage.

Lithium nickel oxide (NCA) from SMM isused mainly in EV batteries. Since thismaterial is high in nickel content andmakes it possible to boost battery capacity,
it contributes to extending a vehicle’s
driving range on a single charge.

SAW filters, devices that eliminate noiseand prevent interference in smartphones
and other mobile telecommunicationequipment, are the main application for
SMM’s crystal materials.

Lithium nickel oxide is the material used forthe positive electrodes of lithium ion batteries.
A fully integrated production capability within
the SMM Group, extending from nickel raw
material through to battery material, is thesource of SMM’s strength in this field.

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Sumitomo Metal Mining materials all around us
Although materials supplied by SMM are used all around us, we rarely see them. Some examples are the lithium
nickel oxide in electric vehicle (EV) lithium ion batteries, the nickel hydroxide in hybrid vehicle nickel-hydrogenbatteries, the crystal materials in components that eliminate noise in smartphones, and the duplex-plated substrates
that make possible thinner LCD televisions. Hard at work but out of sight, our products dependably support andenrich people’s everyday lives.
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Creating the Future
Ensuring we continue mining “new values”

Sumitomo Metal Mining has three core businesses:
mineral resources, smelting and refining, andmaterials. Research and development ensures wecontinue mining new values in these businesses. In
each of our business fields, we pursue technologicalinnovation in two areas: core technologies andfundamental technologies.
SMM is refining unique technologies cultivated during
a history of 430 years and developing new technologies
to realize the next generation of products. Neversatisfied with the status quo, we will tirelessly continue
to explore technologies with a view to the future.

R&D in the Sumitomo Metal Mining Group
Core
Technologies

The SMM Group positions smelting and refining process
technology, powder synthesis and surface treatment technology,
crystal growth and processing technology, and exploration,mining, and mineral processing technology as core technologies.
By continually renewing these pillars of our businesses, we aim tofurther increase product competitiveness.

Development ofmineral resources andmetal processes

Fundamental technology

Analysis technology
Technology to elucidate the mechanisms behind the
manifestation of performance, occurrence of faults, etc.

Fundamental
Technologies

The Group has designated analysis technology, computer aided
engineering and analysis technology, and information andcommunications technology (ICT) as fundamental technologies.
Our ongoing initiatives are focused on developing the processes andtechnologies that will become the foundation for greater precision
throughout our businesses.

Materials
development

Analysis technology
Computer aided engineering and analysis technology
Information and communications technology (ICT)Fundamental technology

Computer aided engineering andanalysis technology
Facility design based on fluid analysis, thermodynamic
analysis, and other simulations, and material design
technology based on first-principles calculations
Fundamental technology

Cathode material for
lithium secondary batteries
Resource &Hydrometallurgy
Process Center

Information and communications technology(ICT)
Technology for analyzing and utilizing big data toraise the efficiency of plant operations and R&D
Core technology

Smelting and refining process technology
Technology to separate and refine copper, precious
metals, nickel and other valuable metals from ore andrecycled raw materials

Exploration technology and mineral processing
technology for separating and concentrating valuable
metals in ores at mine sites

Basic research

Powder material
basic research

Powdermaterial
basic research

Smelting andrefining process
technology
Exploration, mining,and mineral processing
technology

Core technology

Exploration, mining, andmineral processing technology

Core technology

Powder synthesis andsurface treatment technology
Technology to synthesize powder materials yielding
required functions, with control over composition,
particle size, surface condition, internal structure, etc.

Nickel power for MLCCs

Crystal growthand processing
technology

Morenci Copper Mine

Basic research

Powder material
basic research
Basic research into powdermaterials manifesting new
functions and innovative powder
synthesis technology

Core technology

Crystal growth and processing technology
Crystal growth technology that contributes tolarger-diameter, longer, higher-yield lithium tantalate,lithium niobate, and other single-crystals used in thecommunications field, and technology for processing
grown crystals into wafers

Single-crystal lithium
tantalate

R&D with an eye to both current and future needs
SMM’s sustained corporate growth hinges on our ability to continuously seek “new values”. To accomplish this, it isessential to boost our technological development capabilities in order to resolve the issues confronting society, not least in
the materials business where product lifecycles are short. Accordingly, while examining current market and technology
trends, we have formulated an R&D strategy with an eye to innovative technologies likely to emerge in the future. We arealso focusing on basic research into powder materials with new functions superior to our mainstay products.
12

13

Three-businesses collaboration model

A globally unique and original model
based on three-businesses collaboration
Our mineral resource business, where we undertake mine development
and operation in consideration of the environment and society.
Our smelting and refining business, where we create high-quality metal materials from mining resources.
And our materials business, where we add to these metal materials the new value that the times demand.

Mineral“Resources”

The foundation that supports the sustainable growth of the Sumitomo Metal Mining Group and produces a competitive edge that cannot easily be
imitated is our globally unique comprehensive business model that features collaboration among our three businesses and covers everything fromresource development to smelting and refining and the production of advanced materials.

&“SmeltingRefining”“Materials”

Global development and operationof top-class mines

Providing a stable supply of themetals that support society withadvanced technological capabilities

Adding new value to materials to
rapidly adapt to the needs of the times

Using the experience we have built up overmore than 300 years of mine development
and operation, Sumitomo Metal Mining
runs the Hishikari Mine (the only gold
mine in Japan to continue operating on acommercial scale) while also participatingin the development and operation of mines
in various locations around the world andundertaking projects in a range of different
countries in pursuit of top-class mines forsecuring resources.

With the smelting and refining technologythat we have estabilished over more than
430 years since our founding, we
contribute to society through the stablesupply of high-quality metal materials
from low-grade ore that it was once
impossible to recover metal from. We also
support to build a sustainable circular
economy by providing batteries recycling
process.

Develops and produces battery materials,
such as cathode material for rechargeable
batteries that is anticipated to see
increasing demand going forward due tothe electrification of automobiles, andadvanced materials that are mainly used in
the fields of energy and the environment
and information communication.

The competitive advantage produced by this unique three-businesses collaboration model is a core strength of the Sumitomo Metal Mining Group.
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15

Long-Term Vision and Vision for 2030

Aiming for sustainable growth andmaximization of corporate value

Long-Term Vision

Throughout its long history, SMM has always sought to address through its core businesses the issues confronting society that are within the purview
of the company. The results of these efforts have defined and shaped the company. To maintain this socially responsible stance going forward,
we have clearly established the Long-Term Vision, and the Vision for 2030 which is a milestone for the Long-Term Vision.

Become a World Leader
in the Non-Ferrous Metals Industry

The 11 material issues and our Vision for 2030
Effective Use of Non-Ferrous
Metal ResourcesLong-Term Vision Targets
Rights of Indigenous Peoples

A company that generates resources through high technologicalcapabilities

Climate Change

A company that actively undertakes climate change countermeasures, by reducing emissions and stably supplying products
contributing to a low-carbon society, to achieve zero emissionsof greenhouse gases GHGs

Biodiversity /Significant Environmental Accidents

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

Employees’ Occupational Health and Safety

A company that understands and respects the traditions andculture of indigenous peoples

Human Rights in the Supply Chain

A company that undertakes sustainable procurement acrossthe supply chain

Engagement with Stakeholders
A company that is appreciated and understood to be theworld leader in non-ferrous metals

Co-Existence and Mutual Prosperity
with Local Communities

Long-Term Vision

Become a World Leader
in the Non-Ferrous
Metals Industry

A company that contributes to regional development andearns trust as a member of the local community

A company where all employees put safety first in work, with
comfortable workplace environments, safe equipment, andoperations

Corporate value

Diverse Human Resources / Development
and Participation of Human Resources

Vision for

A company where all employees can take a vibrant and active part2030

NickelCopperAnnual production capacity

Annual production interest

150

300

kt
per yearkt
per yearGold

Materials

Participation in newmine operations throughthe acquisition ofsuperior interests

Annual profit before tax throughportfolio management¥25

billion yen
per year

Profit *150¥

billion yen
per year*Profit = Annual profit attributable to owners of parent

Growth potential

Vision for2020

Sustainability

As a World Leader in the Non-Ferrous Metals Industry We Are Aiming to• Have a global presence in terms of mineral resource interests and metal production volumes• Have leading technology and a unique business model that cannot be easily emulated byother 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

SMM Group Corporate Philosophy SMM Group Management Vision
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17

Long-Term Vision and Vision for 2030

Harmonious co-existence withthe global environment and society is the key
to realizing a sustainable society.
In 1894, Sumitomo began large-scale reforestation based on a reforestation plan instituted to restore the devastated surroundings of the Besshi Copper Mine.
Sumitomo was among the first companies to recognize its corporate responsibility for developing resources extracted from the Earth,and to this day SMM engages in environmental preservation and various other initiatives aimed at realizing a sustainable society.

Today, the natural surroundingsof the former Besshi Copper
Mine are flourishing thanks to
the reforestation.

(Photo courtesy of Sumitomo Forestry)Concrete activities to address the material issues
Effective Use of Non-Ferrous Metal Resources
SMM always endeavors to use the Earth’s limited resources effectively and pursues sustainable businessdevelopment in numerous ways. A notable example of SMM’s commitment in action is our HPAL technology
to recover nickel from low-grade oxide ores that could not previously be utilized (ore with low nickel content
located near the surface).
Low-grade ore for THPAL ▶

Climate Change / Biodiversity / Significant Environmental Accidents
With the aim of promoting biodiversity preservation initiatives and maintaining our record of zero significant
environmental accidents, SMM engages in environmental preservation through initiatives such as global
warming countermeasures (expansion of the low-carbon products business, CO2 emissions reduction, andrenewable energy use), minimizing the emission of chemical substances, and forestation.
Coral planting by CBNC ▶

Employees’ Occupational Health and Safety
Vision for 2030 concerning to Employees’ Occupational Health and Safety is “A company where all employees
put safety first in work, with comfortable workplace environments, safe equipment, and operations” Based on thisvision, we strive to foster a culture of safety by ensuring all employees cultivate a safety-conscious mindset andnecessary safety skills, so that they themselves strive to ensure safety and improve the working environment intheir respective roles.
Simulation of getting caught in a chain as part of an on-site hazard simulation course ▶

Diverse Human Resources /Development and Participation of Human Resources /Rights of Indigenous Peoples / Human Rights in the Supply Chain

Besshi Copper Mine
reforestation
The sourcing of lumber from the adjacenttree-clad mountains over many years
following the opening of the Besshi Copper
Mine ravaged the forest, transforming theBesshi mountains into a wasteland.
Accordingly, Iba Teigo, the second
Director-General of Sumitomo, engaged the[Sumitomo Historical Archives]
services of a forestry expert, prepared areforestation plan, and began reforestation in1894. Large-scale planting of as many as two million trees in a single year at the project’s peakhas restored the environs of the Besshi Copper Mine to their original state as verdant uplandforest with a diverse ecosystem. The spirit that inspired this environmental initiative flourishes
today at SMM’s overseas business sites in each business field as we strive for harmonious
co-existence and co-prosperity with local communities.

18

SMM’s commitment to human rights includes education and training to ensure consistent protection of thehuman rights of our employees and other stakeholders. We also monitor the situations of human rights on the
ground and responds promptly and appropriately to any issues. Aspiring to be an enterprise where diverse humanresources flourish, we have prepared various training courses, centering on OJT as well as e-learning,correspondence education, and other programs, as part of our ongoing efforts to offer all employees opportunities
to enhance their skills and motivation.
Introduction to sign language at Diversity Workshop ▶

Engagement with Stakeholders
SMM promotes mutual understanding with all stakeholders, including employees, local communities, andshareholders and investors, through stakeholder communication. We aim to develop fruitful, enduring
engagement with our stakeholders.

Management strategy progress briefing session ▶

Co-Existence and Mutual Prosperity with Local Communities
Harmonious co-existence and the pursuit of co-prosperity with local communities are at the heart of sustainablebusiness activities. Throughout our long history, SMM has engaged in wide-ranging social contribution activities,
such as development of infrastructure, including for healthcare and education, primarily in the communities
where we operate. We will continue to aspire to be an enterprise that seeks to maximize its contribution to thedevelopment of local communities and earns their trust through businesses and other activities rooted in thosecommunities.
A free annual medical examination for people residing near CBNC in the Philippines ▶

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Business Sites

The Sumitomo Metal Mining Group’s Business Sites
Mining Values around the World(As of April 1, 2024)

SMM and its Group companies engage in the mineral resources, smelting andrefining, and materials businesses in 14 countries and regions around the world.

Côté (39.7%)

SMM KOREA Co., Ltd.
Jinglong Copper Co., Ltd. (27.1%)
Dongguan Sumiko Electronic Paste Co., Ltd. (85.0%)
SMM Vietnam Co.,Ltd.

Taiwan Sumiko Materials Co., Ltd.
Nickel Asia Corporation (25.9%)

Coral Bay Nickel Corporation (84.4%)

MineralResources
Segment

Smelting &Refining
Segment

CopperCopperGold

NickelTaganito HPAL Nickel Corporation (75.0%)

Besshi-Niihama District Division
Toyo Smelter & Refinery
Niihama Nickel Refinery
Shisaka Smelting Co., Ltd.
Isoura Plant
Niihama Electronics Co., Ltd.

Sumiko Kunitomi Denshi Co., Ltd.
SMM Precision Co., Ltd.
GRANOPT Co., Ltd. (51.0%)
Sumiko Energy Materials Co., Ltd.

Materials
Segment

Major Sites ofMaterials
Business

Other
Other Major Site / Group Company
Figures in parentheses indicate percentage interest.
Companies with no percentage written are 100% owned.

20

Morenci (25.0%)

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

Ome District Division
Shinko Co., Ltd.
Figesbal (25.5%)

Harima Refinery
Hyuga Smelting Co., Ltd. (60.0%)

Northparkes (13.3%)

Hishikari Mine
Ohkuchi Electronics Co., Ltd.
Ohkuchi Materials Co., Ltd. (95.0%)

Head Office
Sumico Lubricant Co., Ltd.
N.E. Chemcat Corporation (50.0%)
Nippon Ketjen Co., Ltd. (50.0%)
Sumitomo Metal Mining Siporex Co., Ltd.
SICOXS CORPORATION

Cerro Verde (16.8%)
Quebrada Blanca (25.0%)

Ojos del Salado (16.0%)
The location of the head office is shown foreach group company in Japan.

Candelaria (16.0%)

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Company History and Historical Context

Corporate Philosophy

A Company History Shaped by the Era

SMM Group Corporate Philosophy

The history of SMM has unfolded in a context created by broader historical currents.
While drawing inspiration from our history spanning 430 years, we continue to evolve in response to the changing needs of the era.
Key Events around the WorldFounding of the Tokugawa shogunate 1603

Outbreak of the First World War 1914
Great Kanto Earthquake 1923
Great Depression 1929
Outbreak of the Second World War 1939

Electrolytic nickel trade liberalization 1961
Electrolytic copper trade liberalization 1963
Nixon shock 1971
Adoption of a managed floating exchange rate system for the yen
First oil shock 1973
Plaza Accord 1985
Start of the Japanese economic bubble 1986
Bursting of the Japanese economic bubble 1991
Outbreak of the Gulf War

1590 Soga Riemon starts a copper smelting and coppersmithing business in Kyoto, the forerunner of SMM
1691 Opening of the Besshi Copper Mine
1905 Construction of a copper smelter on Shisakajima Islands
1918 Start of operation of the Kounomai Mine

Establishment of Tokyo Electronic Metal Co., Ltd.
1960 (absorbed by SMM and made the Electronic Metal Division in 1966)

1971 Completion of the Toyo Smelter & Refinery
1973 Closure of the Besshi Copper Mine and Kounomai Mine1983 Opening of the Hishikari Mine (start of ore production in 1985)
Equity investment in the Morenci Copper Mine (Arizona),
1986 owned by Phelps Dodge Corporation (currently Freeport McMoRan Inc.)

Kyoto Protocol comes into force 2005
Rapid development of the Chinese economy 2004-2007

2005 Equity investment in the Cerro Verde Copper Mine development project (start of production in 2006)
Start of commercial production at Coral Bay Nickel Corporation (Philippines)

COVID-19 outbreak 2020

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

The Sumitomo Business Spirit
As previously described, the SMM Group traces its roots back to Soga Riemon, who developed a copper smelting techniquecalled nanban-buki 430 years ago. The Sumitomo family subsequently achieved business development through copper
smelting, mining, and other businesses. Masatomo Sumitomo, the founder of the Sumitomo family business, wrote and left
as his legacy Monjuin Shiigaki (The Aphorisms of Monjuin), which provided instruction in how a merchant should conductbusiness. These teachings evolved into the Sumitomo Business Spirit, the spiritual backbone of the SMM Group, whichtoday carries on Sumitomo’s original business.
The Sumitomo Business Spirit is expressed in the following words.

9/11 terror attacks in the U.S. 2001

Paris Agreement 2015
SDGs adopted

Sumitomo Metal Mining Co., Ltd. (SMM), in accordance with the Sumitomo BusinessSpirit, shall, through the performance of sound corporate activities and the promotion ofsustainable co-existence with the global environment, seek to make positive contributions tosociety and to fulfill its responsibilities to its stakeholders, in order to win ever greater trust.

Completion of a neutralization plant at the Shisakajima Smelter and1939 definitive solution to the 50-year-long smoke damage problem
1950 Establishment of Besshi Mining Co., Ltd. (company name changed to the current Sumitomo Metal Mining in 1952)

1993 Conversion to the MCLE method at the Niihama Nickel Refinery1999 Criticality accident at the Tokai Division of JCO Co., Ltd.
2001 Start of full-scale production of automotive battery materials at the Isoura Plant (Ehime Prefecture)

Global financial crisis 2008
Great East Japan Earthquake 201122

Events at SMM

Article 1
Sumitomo shall achieve strength and prosperity by placing prime importance on integrity and soundmanagement in the conduct of its business.
This means that Sumitomo should pursue sound business development by placing importance on the trust of society and relationships
of mutual trust and acting with integrity and trustworthiness in all things.

Article 2
Sumitomo shall manage its activities with foresight and flexibility in order to cope effectively with thechanging times. Under no circumstances, however, shall it pursue easy gains or act imprudently.
2012 Expansion of hybrid vehicle rechargeable battery material (nickel hydroxide) production facilities
2013 Start of production at Taganito HPAL Nickel Corporation (Philippines)
2014 Start of increased production of EV rechargeable battery material (NCA)2016 Acquisition of an additional interest in the Morenci Copper Mine (Arizona, USA)
Acquisition of an interest in the Côté Gold Mine (Canada) development project2017 (start of production in 2024)2019 Acquisition of an interest in the Quebrada Blanca Copper Mine (Chile) (start of production in 2023)
2020 Announces Support for TCFD

This means that Sumitomo should incisively identify the latest trends in the needs of society resulting from changes in the era andlaunch new businesses or terminate existing businesses, without being content with traditional businesses and becoming complacent,and indicates that an enterprising posture is important. At the same time, it means that Sumitomo should under no circumstances
pursue profits by unethical means or be tempted by short-term profits and must not act without sufficient study and consideration.
(Quoted from“Business Principles” forming the “Rules Governing the House of Sumitomo,” formulated in 1928)

Over the years, the SMM Group has developed its businesses by diligently putting this philosophy into practice. We will once
again fully recognize the importance of the values and ethics inherent in the “Sumitomo’s Business Spirit” cultivated by ourpredecessors and carry on with efforts to firmly establish the Group’s businesses and public trust in those businesses.
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