December 19, 2019
News Release
JX Nippon Mining & Metals Corporation
Mitsui Mining and Smelting Co., Ltd.
Pan Pacific Copper Co., Ltd.
Planned Revisions to Joint Structure for Copper Operations
The three companies JX Nippon Mining & Metals (Head Office: Otemachi 1-chome, Chiyoda-ku,Tokyo; President: Seiichi Murayama; “JX Metals”), Mitsui Mining and Smelting Co., Ltd. (HeadOffice: Osaki 1-chome, Shinagawa-ku, Tokyo; President: Keiji Nishida; “Mitsui Kinzoku”), and Pan
Pacific Copper Co., Ltd. (Head Office: Otemachi 1-chome, Chiyoda-ku, Tokyo; President: AkiraMiura; “PPC”) announce that they have reached a basic agreement, pending approvals by the relevant
authorities, to revise their joint structure for copper operations as of April, 2020. Under theagreement, JX Metals and Mitsui Kinzoku are to form their own subsidiaries, the copper smeltingand refining functions of Saganoseki Smelter & Refinery and Hitachi Refinery, operated by PPC, areto be transferred to JX Metals, while Hibi Smelter and Tamano Smelter of Hibi Kyodo Smelting Co.,
Ltd. (in which PPC has an equity share of 63.51%) are to be transferred to Mitsui Kinzoku.
1. Background and purpose of the changes
JX Metals and Mitsui Kinzoku established PPC in October 2000 as a joint sales company for theircopper products. Then on April 1, 2006, the two companies transferred their respective copper
refining and smelting functions to PPC and integrated their productions, with the aim to be morecompetitive through consolidated operation. In doing so, they established in PPC the capability ofproviding a full range of copper-related services, from resources development and raw materials
procurement to smelting and refining and product sales, an arrangement that has continued to thisday.
Since this integration of production operations, JX Metals has been reviewing the role of thesmelting and refining business as it seeks to strengthen downstream business segments, while Mitsui
Kinzoku has been pursuing synergies in its existing lead, zinc, and precious metals smelting andrefining network, as both companies have developed their own separate business strategies in seeking
to expand earnings. The decision to change over to the new operational structure is based on thejudgment that by making independent use of the respective smelting and refining facilities for theirown particular business portfolios, JX Metals and Mitsui Kinzoku, being thoroughly familiar with thedistinctive features and nature of each of the facilities, will be better able to make the existing copper
smelting and refining functions more competitive.
Along with the transfer of copper smelting and refining functions to JX Metals and Mitsui
Kinzoku, respectively, the three companies have also reached basic agreement on the transfer of theresources development business conducted by PPC, including mineral rights held by PPC in theCaserones Copper Mine and mineral exploration projects, to a joint subsidiary formed through direct
investment by JX Metals and Mitsui Kinzoku. PPC will then become dedicated to the copper
smelting and refining business.

2. Functions of PPC following the change in operational structure
JX Metals and Mitsui Kinzoku, as individual consignees, will be supplied with raw material by
PPC, and will return to PPC their respective refined copper, gold, silver, sulfuric acid and otherproducts.
PPC, while benefiting from the merits of scale as copper smelting and refining consignor, willcontinue to procure raw materials and to sell the returned products.
Attachment: Graphic Showing Operational Structure
Inquiries:
JX Nippon Mining & Metals Corporation
Public Relations Office,Planning & Coordination Department
Tel: +81-3-6257-7405
Mitsui Mining & Smelting Co., Ltd.
Investor Relations and Corporate Communications Department,
Corporate Planning & Control Sector
Email: PR@mitsui-kinzoku.com
Pan Pacific Copper Co., Ltd.
Corporate Support Department
Tel: +81-3-6257-6949

Appendix 1【Organization Structure April, 2020 Onward】
Copper Mines etc.

Raw Materials（Conc. & Secondary)

CapitalInvestment

JX Nippon Mining &Metals Corporation

CapitalInvestment

Pan Pacific CopperCo.,Ltd

Smelting & Refining ・Smelting & Refining Toll

New Company(Saganoseki)

Toll Contract

Saganoseki
Smelter & Refinery

Contract
・Raw Materials Procurement
・Products Marketing etc

Hitachi Refinery

CapitalInvestment

Mitsui Mining &Smelting Co.,Ltd

Smelting & Refining
Toll Contract
CapitalInvestment

CapitalInvestment
New Company（Hibi）
Smelting & Refining

Toll Contract

ServiceSupply

Hibi Kyodo Smelting Co.,LtdProductsMarketing

Tamano Smelter

Unchanged
Customers

CapitalInvestment

Smelting & RefiningToll Contract

Nittetsu Mining Co.,Ltd
Furukawa Metels &Resources Co.Ltd
New Company
Resource Development
Business

CapitalInvestment（※）Share Holding Ratio

CapitalInvestment

Pan Pacific Copper Co.,Ltd：JX Nippon Mining & Metals Corporation67.8%・Mitsui Mining & Smelting Co.,Ltd32.2%
Hibi Kyodo Smelting Co.,Ltd：New Company（Hibi）63.51%・Nittetsu Mining Co.,Ltd20.28%・Furukawa Metels & Resources Co.Ltd16.21%
New Company（Saganoseki）：JX Nippon Mining & Metals Corporation100%
New Company(Hibi）：Mitsui Mining & Smelting Co.,Ltd100%
New Company（Resource Development Business）：JX Nippon Mining & Metals Corporation67.8%・Mitsui Mining & Smelting Co.,Ltd32.2%【Present Organization】
Copper Mines etc.

Raw Materials（Conc. & Secondary)

JX Nippon Mining &Metals Corporation

CapitalInvestment

Pan Pacific CopperCo.,Ltd

CapitalInvestment

Mitsui Mining &Smelting Co.,Ltd

CapitalInvestment

Smelting &Saganoseki
Smelter & Refinery
Hitachi Refinery・Smelting & Refining Busiiness・Raw Materials Procurement
・Products Marketing・Resource Development
Businessetc

Hibi Smelter

Hibi Kyodo Sm elting Co.,LtdService
SupplyProducts
MarketingCustomers

Refining
Toll Contract

Tamano Smelter
CapitalInvestment

Smelting & Refining
Toll Contract

Nittetsu Mining Co.,Ltd
Furukawa Metels &Resources Co.Ltd（※）Share Holding Ratio
Pan Pacific Copper Co.,Ltd：JX Nippon Mining & Metals Corporation67.8%・Mitsui Mining & Smelting Co.,Ltd32.2%
Hibi Kyodo Smelting Co.,Ltd：Pan Pacific Copper Co.,Ltd63.51%・Nittetsu Mining Co.,Ltd20.28%・Furukawa Metels & Resources Co.Ltd16.21%

Overview of each company (Unless otherwise stated, as of December 1, 2019)

Appendix 2

1. JX Nippon Mining & Metals Corporation1) Head Office :1-2, Otemachi 1-chome, Chiyoda-ku, Tokyo 100-8164, Japan2) Representative : Seiichi Murayama (President and Representative Director)3) Paid-in-Capital : 75,000 millions of yen
4) Business Line :- Developing and mining of non-ferrous metal resources- Smelting & refining, and marketing of non-ferrous metals (ex. copper, gold, silver, and etc.)- Manufacturing and marketing of electro-deposited and treated rolled copper foils- Manufacturing and marketing of thin film materials such as sputtering targets, surface treatment
agents, and compound semiconductor materials- Manufacturing and marketing of precision-rolled copper, copper-alloy, and special steelproducts- Manufacturing and marketing of precision fabricated products such as gold-plated products- Recycling of non-ferrous metal materials and treatment of industrial waste for reuse
5) Revenue : 1,042 billions of yen (FY2019 (consolidated))6) Total Assets : 1,445 billions of yen (As of March 31, 2019 (consolidated))7) Number of Employees : 9,487 (As of September 30, 2019 (consolidated))

2. Mitsui Mining and Smelting Co., Ltd.
1) Head Office : 1-11-1, Osaki, Shinagawa-ku, Tokyo, Japan
2) Representative : Keiji Nishida (President and Representative Director)
3) Paid-in-Capital : 42,129 millions of yen
4) Business Line :- Manufacturing and sale of functional engineered materials and electronic materials- Nonferrous metal smelting, minerals resource development, and precious metal recycling- Raw material related businesses- Manufacturing and sale of automotive parts/components
5) Revenue : 497.7 billions of yen (FY2019 (consolidated))6) Total Assets : 523 billions of yen (As of March 31, 2019 (consolidated))7) Number of Employees : 12,520 (As of September 30, 2019 (consolidated))3. Pan Pacific Copper Co., Ltd.
1) Head Office : 1-2, Otemachi 1-chome, Chiyoda-ku, Tokyo 100-8164, Japan
2) Representative : Akira Miura (President and Representative Director)
3) Paid-in-Capital : 105,683 millions of yen
4) Business Line :- Metal mining- Purchase of copper concentrates- Prduction and sales of refined copper, sulfuric acid, precious metals, and other by-products5) Revenue : 734 billions of yen (FY2019)6) Total Assets : 504 billions of yen (As of March 31, 2019)7) Number of Employees : 833 (As of September 30, 2019)

4. Hibi Kyodo Smelting Co., Ltd.
1) Head Office : 1-2, Otemachi 1-chome, Chiyoda-ku, Tokyo 100-8164, Japan
2) Representative : Akira Miura (President and Representative Director)
3) Paid-in-Capital : 105,683 millions of yen
4) Business Line :- Production of refined copper, sulfuric acid, and other products5) Revenue : 5.3 billions of yen (FY2019)6) Total Assets : 32 billions of yen (As of March 31, 2019)7) Number of Employees : 211 (As of September 30, 2019)

5. New Company (Saganoseki)
1) Head Office : To be determined
2) Representative : To be determined
3) Paid-in-Capital : To be determined4) Business Line :- Production of refined copper, sulfuric acid, and other products5) Revenue : To be determined6) Total Assets : To be determined7) Number of Employees : To be determined6. New Company (Hibi)
1) Head Office : To be determined
2) Representative : To be determined
3) Paid-in-Capital : To be determined4) Business Line :- Production of refined copper, sulfuric acid, and other products5) Revenue : To be determined6) Total Assets : To be determined7) Number of Employees : To be determined7. New Company (Resource Development Business)
1) Head Office : To be determined
2) Representative : To be determined
3) Paid-in-Capital : To be determined4) Business Line :- Developing and mining of non-ferrous metal resources- Production and sales of copper concentrate and refined copper
5) Revenue : To be determined6) Total Assets : To be determined7) Number of Employees : To be determined