We welcome your views and questions regarding this Sustainability Report 2022.
Any opinions provided will be used to improve future reports even further.
Please use our e-mail or post address below to contact us.

JX Nippon Mining & Metals Corporation Sustainability Report 2022

JX Nippon Mining & Metals Corporation ESG Promotion Department

SUSTAINABILITYREPORT 2022

10-4, Toranomon 2-chome, Minato-ku, Tokyo 105-8417, JapanThe Okura Prestige Tower
E-mail: esg_promotion@jx-nmm.com
URL: https://www.jx-nmm.com/

JX金属̲2022-E.indd 4,1

2023/03/23 18:28

We contribute to the development of a sustainableeconomy and society through innovation in the areasof resources and materials.

JX Nippon Mining & Metals Group Code of Conduct

1. Our social mission
Based on continuous technological development and full awareness of our responsibilities in designing
products, we will develop and produce a variety of products efficiently while minimizing waste. At the same time,
we will promote recycling and reduce the impact of our operations on the environment. By doing so, we hope toobtain the satisfaction and trust of our customers and of society as a whole.

2. Compliance with laws and regulations and engagement in fair trade
We will comply with domestic and/or overseas laws and regulations, and will engage in fair, transparent and freecompetition and trade based on the fulfillment of our social responsibilities.

3. Disclosure of corporate information and protection of personal information
We will communicate not only with our shareholders, but also with the public at large, and will disclose
corporate information in an active and equitable manner while focusing on the protection of personal
information.

4. Creation of an optimum health, safety and working environment
We will place top priority on health, safety, and disaster prevention and will ensure a comfortable working
environment that respects employees’ personality, human rights, and individuality.

5. Environmental conservation
Based on the awareness that tackling environmental issues is an essential requirement for corporate existence,
we will engage in activities aimed at conserving the global environment, including biodiversity, in a voluntary,active and continuous manner.

6. Enhancement and strengthening of risk management
We will establish a risk management system based on scientific data to enhance and strengthen risk
management.

7. Harmonious relationship with society
We will commit ourselves to social contribution activities and work as a good corporate citizen to achieve a
harmonious relationship with the rest of the society of which we are part.

8. International business operations
In international business operations, we aim to contribute to sustainable development by protecting thefundamental human rights of people in countries and areas where we operate, and by respecting their culturesand customs.

9. Elimination of antisocial activities
We stand firm against all antisocial forces and groups that threaten social order and safety.

10. Management responsibilities
Management executives will take the lead in implementing this code of conduct and ensure it is thoroughly
implemented across the Group. In the event of any non-compliance with the code of conduct, the management
executives will investigate the causes, work to prevent reoccurrence, disclose information to the public promptly
and accurately, and be held accountable for the event.

Our LOUNGE and SQUARE LAB areas within the head office facilities won the iF Design Award 2022, an award
given by iF International Forum Design GmbH.

1

JX Nippon Mining & Metals Corporation

Sustainability Report 2022

2

Contents/Editorial Policy

Section 1 Vision & Values

SocialHistory of Value Creation

5

Special Feature 3

55

Message From the President

7

Materiality 2 Provide Advanced Materials That Support Lives and Lifestyles

61

Medium-Term Management Plan for Fiscal 2020 to 2022

11

Materiality 3 Create Attractive Workplaces

77

Global Network

15

Materiality 4 Respect Human Rights

89

Responding to International Norms and Initiatives

17

Materiality 5 Coexistence and Co-Prosperity With Local Communities

94

Message From Outside Director

20

Further Accelerating our Digital Transformation (DX) Strategy

Governance
Section 2 Value Creation Strategy
21

Value Creation Model

99

Materiality 6 Strengthen Governance

Sustainable Copper Vision23

ESG Data Book

The JX Nippon Mining & Metals Group for the Future Society

27

Environment

109

Strategies By Business29

Social114

Independent Assurance Report118

GRI Standards Content Index (Core Option)

119

Special Feature 1

Section 3 Materiality and ESG Management
Materialities (Priority Issues) and KPIs (Key Performance Indicators)

35

Environment
Special Feature 2

The JX Nippon Mining & Metals Group’s Climate Change Strategy

Materiality 1 Contributing to Environmental Conservation

37
47

Sustainability Report 2022
Editorial Policy

The JX Nippon Mining & Metals Group engages
in ESG management in all its businessendeavors, toward the sustainable developmentof society. We issue one edition of the
Sustainability Report each year to disclose
appropriate corporate information to a broad
range of stakeholders, including customers,
shareholders and investors, employees,
suppliers, and local and international
communities. As an important communication
tool, this report is designed to enhance
stakeholders’ understanding of our ESG
activities.
The Sustainability Report 2022 is structured
around the Message From the President, with anawareness of the need to both enhance
corporate value and create a sustainable society.
This report’s presentation is also designed to beeasier to understand visually by using illustrations
and graphs.

Referenced Guidelines• The Ten Principles and Assurance andValidation Procedure International Council on
Mining and Metals (ICMM)• GRI Sustainability Reporting Standards (GRI
Standards), Global Reporting Initiative (GRI)• Environmental Reporting Guidelines 2018,
Ministry of the Environment• Task Force on Climate-related Financial
Disclosures (TCFD)
The indicators in this report that are assured bya third-party organization are marked with acheck.

3

JX Nippon Mining & Metals Corporation

Definitions of Terminology

JX Nippon Mining & Metals (The Company): The
terms “JX Nippon Mining & Metals” and “theCompany” refer to JX Nippon Mining & Metals
Corporation.
The JX Nippon Mining & Metals Group (theGroup): The terms “the JX Nippon Mining&Metals Group” and “the Group” refer to JX
Nippon Mining & Metals Corporation and all its
subsidiaries. However, the companies subject toreporting vary among different sections of thereport (see “Scope of this Report” for details).
The ENEOS Group: The term “the ENEOS
Group” refers to the corporate group formed by
ENEOS Holdings, Inc., the parent company of JX
Nippon Mining & Metals Corporation. Along with
the Company, the core operating companies of
the ENEOS Group are ENEOS Corporation and
JX Nippon Oil & Gas Exploration Corporation.

Main Companies Covered by This Report
This report covers JX Nippon Mining & Metals
Corporation as well as domestic and overseas Group
companies. However, in certain parts of the report(listed as “Corresponding Sections” in the tablebelow), we report main indicators only for thosecompanies as described under “Scope of thisReport” in the table below. Where the scope ofreporting for each indicator differs from the scope
shown in the table below, this scope shall be noted
separately.
Corresponding
Sections

Business
Overview

Publication Date

March 2023
Publication date of previous report: January 2022
Publication date of next report: January 2024

Reporting Period

April 2021 - March 2022
In principle, this report covers our businessactivities during fiscal 2021. To ensurecomprehensive disclosure, however, it also
includes certain information regarding important
events that occurred prior to or after this period.

Domestic

Scope of this Report

Environment

Employees,
Society,
Corporate
Governance

Scope of this ReportCompanies included in the consolidated
financial statements of JX Nippon Mining &Metals.
* The Company and its consolidated
subsidiaries listed on the right that havethe ◎ symbol after their names.
Energy and GHGs: Business locations ofquantitative importance to the JX Nippon
Mining & Metals Group (including businesslocations with production activities andclosed mines) (Companies listed on theright marked with ●)Other environmental data: Production sitesof corporations with 21 or more employees(Companies listed on the right marked with＊)
The Company and 81 companies in which
the Company has 50% or greater voting
rights directly or indirectly.
* Main companies covered by this report
are those marked with ★ to the right.

Overseas

JX Nippon Mining & Metals Corporation ◎●＊★

JX Nippon Exploration and Development Co., Ltd. ◎★

JX Metals Trading Co., Ltd. ◎●＊★

MFN Investment LLC ◎★

Toho Titanium Co., Ltd. ◎●＊★

Nippon Caserones Resources Co., Ltd. ◎★

JX Nippon Mining Ecomanagement, Inc. ◎●★

Pan Pacific Copper Co., Ltd. ◎●★

Yoshino Mines Co., Ltd. ◎●★

Keihin Kaseihin Center Co., Ltd. ◎●★

Oya Mines Co., Ltd. ◎●★

PPC Logistics Co., Ltd. ◎★

Hokuriku Mines Co., Ltd. ◎●★

JX Metals Smelting Co., Ltd. ◎●＊★

Shin-Takatama Mining Co., Ltd. ◎●★

JX Metals Smelting Logitech Co., Ltd. ◎●★

Kaneuchi Mining Co., Ltd. ◎●★

Japan Copper Casting Co., Ltd. ◎●＊★

Hitachi Mines Co., Ltd. ◎●★

Japan Korea Joint Smelting Co., Ltd. ◎★

Shakanai Mines Co., Ltd. ◎●★

JX Nippon Environmental Services Co., Ltd. ◎●＊★

Hanawa Mines Co., Ltd. ◎●★

JX Nippon Tomakomai Chemical Co., Ltd. ◎●＊★

Hokushin Mining Co., Ltd. ◎●★

JX Nippon Mikkaichi Recycle Co., Ltd. ◎●＊★

Namariyama Mining Co., Ltd. ◎●★

JX Nippon Tsuruga Recycle Co., Ltd. ◎●＊★

Kamikita Mines Co., Ltd. ◎●★

JX Nippon Takasho Co., Ltd. ◎●＊★

Toyoha Mine Co., Ltd. ◎●★

Ichinoseki Foil Manufacturing Co., Ltd. ◎●＊★

Shimoda Hot Springs Co., Ltd. ◎●★

JX Nippon Coil Center Co., Ltd. ◎●＊★

Kamine Clean Service Co., Ltd. ◎★

JX Metals Precision Technology Co., Ltd. ◎●＊★

Furuuchi Chemical Corporation ◎●＊★

Kitaibaraki Precision Co., Ltd. ◎●＊★

Ibaraki Nikko Kensetsu Co., Ltd. ◎★

JX Nippon Foundry Co., Ltd. ◎●★

JX Metals Circular Solutions Co., Ltd. ◎●＊★

TANIOBIS Japan Co., Ltd. ◎●＊★

JX Metals Plant Saganoseki Co., Ltd. ◎★

Toho Material Co., Ltd. ◎●★

Kasuga Mines Co., Ltd. ◎●＊★

Advanced Forging Technology, Inc. ◎●★

* Company names are current as of fiscal 2021.

Hong Kong Nikko Shoji Co., Ltd.◎★
Shenzhen Nikko Shoji Co., Ltd.◎★
Materials Service Complex (Thailand) Co., Ltd.◎●★
Materials Service Complex Coil Center (Thailand) Co., Ltd.◎＊★
Nikko Metals Taiwan Co., Ltd.◎●＊★
JX Nippon Mining & Metals Shanghai Co., Ltd.◎★
MLCC Finance Netherlands B.V.◎★
Nippon Mining of Netherlands B.V.◎★
Nippon LP Resources B.V.◎★
Nippon LP Resources UK Limited◎★
JX Nippon Mining & Metals Chile SpA◎★
Compania Minera Quechua S.A.◎★
JX Nippon Mining & Metals Exploration Peru S.A.C.◎★
JX Nippon Mining & Metals Exploration Chile Limitada◎★
Nippon Caserones Resources Canada Enterprises Corp.◎★
SCM Minera Lumina Copper Chile◎●＊★
Caserones Finance Netherlands B.V.◎★
JX Nippon Mining & Metals Philippines, Inc.◎●＊★
Nippon Mining & Metals (Suzhou) Co., Ltd.◎●＊★
Nikko Fuji Precision (Wuxi) Co., Ltd.◎●＊★
Materials Service Complex Malaysia Sdn. Bhd.◎●＊★
Nikko Metals Shanghai Co., Ltd.◎★
JX Nippon Mining & Metals Dongguan Co., Ltd.◎●＊★
JX Nippon Mining & Metals USA, Inc.◎●＊★
JX Nippon Mining & Metals Europe GmbH◎★
JX Nippon Mining & Metals Korea Co., Ltd.◎●＊★
JX Nippon Mining & Metals Singapore Pte. Ltd.◎★
TANIOBIS GmbH◎●＊★
TANIOBIS Co., Ltd.◎●＊★
TANIOBIS Smelting GmbH & Co. KG◎●＊★
TANIOBIS USA LLC◎★
JX Metals Circular Solutions Europe GmbH◎★

Sustainability Report 2022

4

Section 1

Vision and Value

2022

June 2020

Relocated Headquarters
to the Toranomon area

*Consolidated

2010

1914 Built the Hitachi Giant Stack

1978 Built new recycling furnace

The rapid growth of the Hitachi Mine’s business led to severe
smoke pollution in its surrounding area. To deal with thepollution, the Company built what was then the world’s tallest
stack, at 155.7 meters. It began operation in March of thefollowing year.

A new recycling furnace making use of smelting
techniques was built at the Hitachi Smelter & Refinery,marking the launch of the Company’s Recycling andEnvironmental Services Business. Using this furnace, we
pursued the business of reclaiming valuable metals fromplating sludge and other industrial waste.

1992

Spinoff of Nippon
Mining’s metals andmetal fabrication
businesses

1929

EstablishedNipponMiningThe JX Group (JX Holdings)
was born as one of the world’s
leading integrated energy,
resources, and materials businessgroups, conducting business ineach of the areas of petroleum
refining and sales, oil fielddevelopment, andmetals

10,113(as of March 31, 2021)*Consolidated

The Okura Prestige Tower

2017

JXTG Holdings (nowENEOS Holdings) Born

Nikko Metals BecomesIndependent Company

2016

2002

JXTG Holdings wasestablished with the merger
of JX Holdings and Tonen
General Sekiyu K.K.

Changed Japanesename of JX Nippon
Mining & Metals

EstablishedNippon Mining
Holdings, Inc.
Merger of Japan
Energy and Nikko
Metals

1905

1916

1964

1985

2014

Company founder Kuhara
Fusanosuke opened the Hitachi
Mine, launching the resources
development and smelting andrefining businesses. From the very
beginning of its operation, Mr.
Kuhara actively promoted
mechanization and modernization to
improve productivity. The Hitachi
Mine pioneered the custom smelter,
using its full-fledged facilities toprocess not only ores from its homemine, but also those purchased fromother firms.

In order to further expand themining, smelting, and refining
segments fundamental to theCompany’s diversified business, theSaganoseki Smelter & Refinery wasbuilt in Oita Prefecture. It was one of
the largest such plants in Japan.
Even to this day, it remains a key
location within the JX Nippon Mining& Metals Group, as a leading-edge
smelter boasting worldclasstechnological capabilities andproduction capacity.

The launch of operations at the
Kanagawa-based Kurami Works
marked the Company’s earnest
entry into the metal fabrication
business. It featured the latest rollingmills, producing phosphor bronze
and other copper alloy products. By
answering the needs of complex
markets for diverse, small-lot, andmade-to order products, as well as
advanced technical demands on
products, the Company carved out
a solid position for itself in the metal
fabrication field.

The Company entered the electronicmaterials business in time for therise of the electronics industry in the
1980s, making sputtering targets forsemiconductors and transparent
conductive films for liquid crystal
displays, as well as materials forcompound semiconductors. By
establishing the Ibaraki-based
Isohara Works as a new main
manufacturing center, the Company
expanded into development andmanufacturing of copper foil andvarious electronics materials.

The Group celebrated the official
opening of the Caserones Copper
Mine, a resource development
project in the Republic of Chile fully
funded by Japanese entities
providing the Group’s first copper
concentrate shipments.

The Saganoseki Smelter & Refinery in 1916

Kurami Works just after completion

The newly-established Isohara Works

Caserones Copper Mine

Opened the Hitachi Mine

Founder Kuhara
Fusanosuke

5

No. Of Employees

Birth of the JX GroupIn recognition of our mission as a stable provider of nonferrous metal resources and materials to society, the Group has, since ourfounding in 1905, strived to generate new value even while answering the various changes in the business environment. We aredetermined to continue forward, taking on the challenge of contributing to the development of sustainable economies and societies
through innovation in resources and materials.

Established1,293.0 bil. yen(fiscal year ended March 2022)

History of Value Creation

1905

Net Sales

JX Nippon Mining & Metals Corporation

Launched operations at
the Saganoseki Smelter& Refinery

Launched operations at
Kurami Works

Launched operations at
Isohara Works

Launched production at
Caserones Copper Mine

February 2021
Acquired all equity in the
Caserones Copper Mine throughthe purchase of equity held by
Mitsui Mining & Smelting Co.,
Ltd. andMitsui & Co., Ltd.

2018

Acquired shares in H.C.
Starck Tantalum andNiobium GmbH (nowTANIOBIS GmbH)The Group acquired shares of H.C.
Starck Tantalum and Niobium GmbH
(now TANIOBIS GmbH), a German
manufacturer of metal powders, withan eye to expanding its businessareas in anticipation of dramatic
demand growth for electronic
components and devices.

TANIOBIS GmbH (Goslar Plant)

Sustainability Report 2022

6

Section 1 Vision and Value[Review of Fiscal 2021]
Significant increase in profit year on year:
Focus Businesses were strong in response tohigher demand in IT; Base Businesses benefited
from high resource prices and weak yen

JX Nippon Mining & Metals Corporation
President and Chief Executive Officer

Murayama Seiichi

Message From the President

We Will Communicate our Vision of
Becoming a Technology-Based Company to
our Stakeholders More Clearly, Creating
Sustainable Societies Together
7

JX Nippon Mining & Metals Corporation

The JX Nippon Mining & Metals Group posted a significant increase in consolidated operating profit, reaching 158.2 billion
yen in fiscal 2021. This figure was almost double the 78.1 billion
yen earned in the previous fiscal year. A more detailed lookshows the significant impact of high prices for non-ferrous metals and the weak yen. Even excluding the tailwinds of the external environment, we see that performance outpaced prior-yearlevels. In particular, the Functional Materials Business, Thin Film
Materials Business, and Tantalum and Niobium Business—three Group Focus Businesses— recorded a sharp increase inprofits. This remains true, even when excluding external environmental factors. One could say this is the result of concertedGroup efforts to increase production and sales of products thatplay to our strengths. This, amid continued market growth inhighly functional IT fields such as smartphones and telecommunications infrastructure.
At the same time, Base Business also posted an increasein profits, as they benefited from rising market prices and aweaker yen. Let’s look at our Mineral Resources Business. The
Caserones Copper Mine, in which we acquired a 100% interest
in February 2021, and the Escondida and Los Pelambres Mines(both in Chile), where we hold equity interests, were forced tooperate under the COVID-19 pandemic. As a result, we wereunable to secure sufficient staffing at these locations and failed
to achieve full production throughout the year. While these wereunavoidable developments, other issues remain unresolved aswell. Our Metals & Recycling Business has been working toincrease processing of recycled materials, optimize the composition of raw materials, and improve the operational efficiencies
at manufacturing sites, operating under an integrated smelting
and recycling system. And though we faced a number of unfavorable conditions, including COVID-19 and intensifying competition for recycled raw materials overseas, we have been
seeing success in a series of initiatives.

[Growth Investment Targets]
Rapid facilities expansion in response to thequickly growing advanced materials market andlarge-scale investments for the future
We announced several plans for large-scale capital investments
in fiscal 2021 through early fiscal 2022. The JX Nippon Mining& Metals Group redefined our business based on the ideal of
our Long-Term Vision 2040. And we declared our transformation

into a technology-based company. A technology-based company is a company that maintains a resilient portfolio of BaseBusinesses in society at all times, while contributing to the SDGs
and sustainable societies through high-value-added and differentiated advanced materials. Market growth in these fields had
already become clear in fiscal 2021. Our intention to expand
facilities to seize these opportunities is a major topic in our current medium-term management plan.
In December 2021, we announced plans to increase production capacity for sputtering targets for semiconductors andtreated rolled copper foil. The former and latter are slated for
new plants in the northern part of Hitachi City and Hitachi Works,
respectively. As we expand manufacturing capacity for bothproducts, we also decided to make further investments to respond flexibly to the rapid growth in demand. We view thesecapital investments as a response to market growth during thenext medium-term management plan, which begins in fiscal
2023. Here, we plan to invest approximately 30 billion yen.
Looking ahead to the next medium-term management plan, we
have decided to invest in the TANIOBIS Thailand plant run under
the Tantalum and Niobium Business. We intend to increase
production capacity of functional tantalum powder by about
30%. In addition, we made Tokyo Denkai Co., Ltd. a wholly
owned subsidiary to strengthen the supply chain running fromthe Tantalum and Niobium Business to the Thin Film Materials
Business. Tokyo Denkai is responsible for tantalum ingot
manufacturing.
In March 2022, we announced the acquisition of a large site
for the construction of a new plant in Hitachinaka City, Ibaraki
Prefecture. The new plant will be a new major center for advanced materials with a view beyond the next medium-term
management plan. We expect demand growth in the semiconductor and electronic device fields to continue over the longterm. Therefore, we are looking to build an integrated plant, andrelocate certain of our head office functions to Ibaraki Prefecture.
While we are studying details of the total investment in the newplant, we expect this to be our largest-ever investment in a
production facility.
We also acquired a large site in the U.S. state of Arizona.
Arizona is a hub to the semiconductor industry, and we intend
to expand production capacity for sputtering targets for semiconductors in a flexible manner in response to customer needs.
Not only that, but we also intend to leverage this large, 260,000
square meter site to be our center for advanced materials inNorth America.
We understand the need to strengthen the competitive
stance of the Base Business to fortify our foundation as an
operation that supports Group growth. To evolve our Green
Hybrid Smelting technology, we recently made several investments to strengthen our Metals & Recycling Division. These
investments focused on the Saganoseki Smelter & Refinery
Reference

Building a New Plant in Hitachinaka City

P72

Sustainability Report 2022

8

Section 1 Vision and Value
Message From the President

owned by JX Metals Smelting Co., Ltd. As one example, webuilt a new logistics center in Oita City, upgrading the processing
facilities for recycled materials at the smelter. In August 2022,
we announced the acquisition of eCycle Solutions Inc. to bolster
the collection of recycled materials. eCycle Solutions is ane-waste (discarded household appliances and electronic devices) collection and processing company with a strong collection
network and the largest market share in Ontario, Canada. The
company operates eight locations, including its main site in theprovince of Ontario. At the same time, we pursued selection andconcentration to strengthen our businesses. To this end, we
decided to sell our shares in P.T. Smelting (Indonesia) andLS-Nikko Copper (Korean smelting company). Meanwhile, as ameasure to strengthen our supply chain, we acquired shares in
Hokuho Unyu Corporation to reinforce our sulfuric acid transportation infrastructure.

[Progress in ESG Management]
A Partnership among industry, academia, andgovernment for a Sustainable Copper Vision and
LiB Closed Loop Recycling
The JX Nippon Mining & Metals Group designated ESG as amateriality, and we have pledged to contribute to sustainable
societies. Looking back over the past year, we have seen an
acceleration in global trends toward the SDGs and ESG, including the decarbonization movement. Most of the strategic investments and measures we undertook in fiscal 2021 are also important from an ESG perspective.
Demand for copper and other non-ferrous metals will continue to increase. But we must also contribute to society bytransforming ourselves into an entity offering higher-value-added
advanced materials on proprietary technologies. The movement
toward decarbonization is expanding with the spread of electricvehicles (EVs), as well as electrification and renewable energy
more generally. Our businesses supply the non-ferrous metals
and advanced materials indispensable for the technologicalinnovations that will make these changes possible. And we areconfident that these businesses contribute to the SDGs and
ESG as we continue to grow. We also know we must consider
raw materials procurement and production process related to
nonferrous metals and advanced materials from an SDGs and
ESG perspective.
Our Sustainable Copper Vision, published in August 2022,
expresses the Group’s beliefs in this area. Copper is a nonferrous metal that contributes to sustainable societies. Demand forthis metal will only continue to grow. And we have defined it asa Group mission to ensure the stable supply of copper into the
future, producing copper in a manner that considers ESG issues
such as decarbonization and enabling a circular economy. SpeReference

9

Special Feature 1 Sustainable Copper Vision

JX Nippon Mining & Metals Corporation

P23

cifically, we will evolve sustainable production and supply practices through Green Hybrid Smelting, which uses a greater ratioof recycled raw materials in copper smelting than ever before.
And we will communicate to the world that copper produced inthis way is the optimal solution for resource savings, energy
conservation and carbon savings. We hope to form a Green
Enabling Partnership with companies and organizations that
support our ideas, expanding the circle of support.
In terms of resource recycling and the circular economy, we
are working on the development of closed-loop technology forlithium-ion batteries (LiB). After installing test equipment at the
Hitachi Works Technology Development Center, we establishedJX Metals Circular Solutions in spring 2021 to develop mass
production technology. Overseas, particularly in Europe, thedemand for resource recycling is even stronger than in Japan.
There, battery recycling general, including LiB recycling, became
mandatory at the end of 2020. JX Metals Circular Solutions
Europe GmbH and TANIOBIS GmbH (both Germany), together
with our entire Group, are making concerted efforts in this area
to build a competitive business model that complies with European regulations, which are leading the way in this field. As partof this effort, we decided to join HVBatCycle in June 2022.
HVBatCycle is a new industry, government, and academic consortium formed around the Volkswagen Group. This group is
engaged in joint research and development on the recovery andreuse of automotive-use LiB materials. Given the rapid spreadof EVs worldwide, LiBs are expected to be disposed of in massquantities in the year 2030 or so. Widespread use of EVs will
also lead to a significant increase in demand for nickel, cobalt,
and lithium, which are necessary for automotive batteries. Finding these resources solely from natural resources such as mines
will be impossible. It is becoming a common understanding
among our partners that closed-loop recycling of battery materials from EV to EV is one of the best solutions both socially andeconomically. We believe that our Group technology can play arole as part of a mechanism that contributes to the sustainablesupply of these scarce resources.

[Materiality]
Communicating widely our mission to contributeto society as a technology-based company,
co-creating the future together with our
stakeholders
In fiscal 2020, we have again identified materialities to prioritize as a group in light of the demands of society and changes
in the industry. We have already discussed the materiality ofproviding advanced materials that support lives and lifestyles.
In contributing to global environmental conservation, we declared we will advance our interim CO2 emissions reduction
Reference

Materialities (Priority Issues) and KPIs
(Key Performance Indicators) P35

target by 10 years, based on our belief that we should moreproactively reduce our own CO2 emissions as part of our climatechange strategy. This target is in addition to the aforementioned
Sustainable Copper Vision and LiB Closed Loop initiative. Today,
we pursue group-wide activities toward a major goal to reduce
total in-house CO2 emissions by 50% in fiscal 2030 versus fiscal
2018, achieve reach net zero by fiscal 2050. Our current medium-term management plan defines an ESG investment quota
to encourage capital investment and technological development. We are pursuing the transition to CO2-free electricity atdomestic and overseas business sites. In July 2022, we became
the first company in the non-ferrous metals industry to establish
a transition-linked loan framework (TLLF). We structured transition financing based on the use of the TLLF to cover the environmental costs of our sputtering target for semiconductor
production site at the New Hitachi-kita Factory (tentative name).
We are also working to quantify the Scope 3 equivalent of CO2
emissions, and to further enhance information disclosure basedon the TCFD, which synthesizes this information.
To achieve our long-term vision, we must transform ourselves into a corporate entity that generates new business continuously. Recognizing that creative, human resources capableof creating added value are indispensable for this, we strive tocreate attractive workplaces. In June 2020, we relocated ourhead office and adopted activity-based working (ABW), which
has become a new work style for the group. Our main objective
is to create a communication environment conducive to value-added creation, while respecting the diverse work styles andvalues of each individual. Telework has quickly become a favored work style, partly due to the spread of the COVID-19. But
at the same time, I feel that emphasizing face-to-face communication is also essential for revitalizing an organization andcreating innovation.
When I have the opportunity to meet with employees, I always talk about the importance of work-oriented communication, which is part of our groups DNA. I also talk about thesignificance of engaging in discussions with a wide variety ofpeople as we tackle tasks and issues. We believe that technology-based companies must have a keen grasp of social change
and demonstrate creativity. Companies that lack such capabilities will be weeded out eventually. Creativity cannot be bornfrom a mindset that is content with the status quo. I believe wehave a unique approach in that we engage actively in open innovation, seek and absorb diverse knowledge, and carry out inlively discussions to revitalize our internal organization.
We are fortunate to deal in materials for which society’s
needs will continue to grow in the future. But there is no guarantee that we will continue to grow in 10, 20, or 30 years at ourcurrent rate. Markets are changing faster and market requirements are becoming more sophisticated. One moment to thenext may demand different characteristics, more advanced
ReferenceSpecial Feature 2: The JX Nippon Mining & Metals
Group Climate Change Strategy P37

performance, and higher quality. If we cannot respond throughtechnology, our business will be in a serious predicament. We
are accelerating our digital transformation (DX) strategy to establish a business foundation that offers a distinct advantage
over other non-ferrous metals companies in the world, and we
strive to become this type of technology-based company.
Increasing coexistence and coprosperity With Local Communities is a materiality and an important management issue forus. We will succeed by raising awareness of our businesses andinitiatives not only among our employees, but also among society as a whole. We are always ready to work on co-creation with
communities, universities, schools, and organizations that sharethe same destination and concept as our company. We welcome partnerships with companies ranging from start-ups tolarge corporations. Sticking to our own principles may not be
the best course to reaching our long-term vision for the year
2040. We will work together with people in all fields achieve ourideal for society. To this end, we communicate actively to painta clear picture of JX Nippon Mining & Metals Group vision. Ourannouncement of the Sustainable Copper Vision is a symbol ofthis commitment and a statement of our intention to accelerate
our efforts. We will continue to foster circular economies throughcollaboration and cooperation (Green Enabling Partnership) withvarious partners across industries.

ReferenceSpecial Feature 3: Accelerating Our Digital
Transformation (DX) Strategy P55

Sustainability Report 2022 10

Section 1 Vision and Value

Medium-Term Management Plan for
Fiscal 2020 to 2022
Beginning in fiscal 2020, the medium-term management plan is positioned as a three-year period for sowing seeds in anticipationof transforming into a technology-based company as set forth in the JX Nippon Mining & Metals Group Long-Term Vision 2040
formulated in May 2019. We are accelerating our efforts in new growth areas. We are promoting initiatives, human resource
development, and the creation of an organizational culture suited to the characteristics of each business. We are implementing
corporate management that further enhances autonomy, agility, and independence.

The JX Nippon Mining & Metals Group Long-Term Vision 2040
By pivoting from being an equipment industry company to a technology-based
company, we will realize a highly profitable structure even in the face of intensifying
international competition and contribute to the realization of a sustainable society as
targeted by the SDGs

Summary of Business Results for
Fiscal 2021
for precious metals and an improvement in the international
market for sulfuric acid, even as conditions deteriorated withrespect to purchasing raw copper concentrates.
Sales volume for each product in the Functional Materials
and Thin Film Materials Businesses generally exceeded previous
fiscal year due to strong demand in the high-functional IT field.
The JX Nippon Mining & Metals Group operating profit forthe period under review increased 102.6% from the previous
year to 158.2 billion yen, mainly due to higher metal prices andincreased sales of electronic materials.

Copper and other nonferrous metals are indispensable for thewider adoption of renewable energy and electric vehicles (EVs).
Demand is growing as the world works toward achieving decarbonized, circular economies. The JX Nippon Mining & Metals
Group engages in a number of measures in response to thistrend.
Although production volume declined in the Mineral Resources Business due to a strike at the Caserones Copper Mine,profit increased, mainly due to higher copper prices. The Metals& Recycling Business posted higher profit due to rising prices

Role of the Current Medium-Term Plan
Next Medium-Term
Plan(2023 and beyond)Current Medium-Term Plan
(2020 to 2022)

Prev. Medium-Term
Plan (2017 to 2019)

Sowing the seeds for transformation into atechnology-based company towardachievement of the Long-Term Vision

Formulation ofLong-Term Vision

Financial Performance (Consolidated, IFRS)
2040
RevenueAchieve the Long-Term Vision throughsustainable growth and contribution tosociety

Operating Profit(billions of yen)

Profit Before Tax(billions of yen)(billions of yen)
200

200

1,500

1,293.0
1,200

1,004.4

163.9

158.2

1,092.1

150

150

900

Sowing the seeds for transformation into a technology-based company
and achieving our Long-Term Vision
through business operation with a greater autonomy, agility, and independence
Basic Policy

Expand Strategic Investment
Promote Technology
Development

Review Business Portfolios

Develop Human Resources
Capable of Creating New
Value

Contribute to the SDGs

100

50

300

0

2019

2020

2021

(FY)

0

100

78.1

600

72.0

44.6

50

2019

2020

2021

(FY)

0

28.9

2019

2020

2021

(FY)

*Including inventory effects

Base Businesses
Mineral resources business,smelting and recycling business, etc.
Improve the profitability of the Caserones Copper Mine andenhance its ability to respond to changes in the market
environment

Basic
Strategy

Focus Businesses

Core of our growth strategy

Advanced materials, technology-based recycling business,
etc.
Accelerate growth by capitalizing on the rapidly increasing
demand for telecommunications infrastructure and devices

Technology Development
Establish a mechanism for creating new businesses as atechnology-based company

11 JX Nippon Mining & Metals Corporation

Net Income Attributable to Owners of
ParentOrganization and
Human Resources(Corporate Culture)
Creating a corporate
climate and workplace of
free and open
communication,
developing humanresources able to adapt
to a new age and newvalues(billions of yen)(billions of yen)

100

1,800

93.1

SDGs
Through technologicalinnovation and humanresources development
contribute to society
with advanced materials
and reducing CO2
emissions

Total Assets and Total Liabilities

1,500

80

64.5

166

Total Assets

Total Liabilities

1,657.1
1,380.1

1,452.2

1,200

1,058.8

60
900

837.3

915.6

40
600
20

0

16.6

2019

300

2020

2021

(FY)

0

2019

2020

2021

(FY)

Sustainability Report 2022 12

Section 1 Vision and Value
Medium-Term Management Plan for Fiscal 2020 to 2022

Changes in Social Trends

Strategic Investment

Environmental Awareness
Creating the Long-Term Vision

At Present

Expanding Needs for
Advanced Materials

In addition to IT and mobility, digital data is
being used in a variety of industries,
including healthcare, energy, andconstruction. The need for advanced
materials used in these fields will further
expandShrinking Domestic Market/
Focus on Emerging
Economies for Sustainable
Growth are Issues

The domestic market is shrinking due tothe declining birthrate, aging population,and the industry hollowing out. The focusof economic growth is shifting to emerging
economies in Asia and other regions, but
the challenge is to deal with theenvironmental problems that are beginningto emerge even in emerging economies

Increasing Scarcity and
Depletion of Resources dueto the Expansion of the
Middle ClassAs the middle class increases, the amountof resources consumed also increases.
Acquiring good quality and inexpensive
resources will be subject to competition.
Resource shortages and depletion, as wellas uneven regional distribution, will
become more serious

Expanding Demand for
Advanced Materials• The spread of COVID-19 has accelerated
the development of a data-driven society,and demand for smart devices andtelecommunications infrastructure has
increased• To solve the shortage of semiconductors,
demand for materials is rapidly increasing

Global Acceleration in
Addressing Climate
Change• As environmental problems become more
apparent around the world, global
companies are accelerating their response
to climate change, especially concrete
actions for decarbonization

Deepening Mineral
Resource Shortages/
Depletion• With the increase in mineral resources
consumed, competition for high-quality,
inexpensive mineral resources is intensifying• Focus on nonferrous metals to support
future infrastructure and growing concerns
about depletion• Competition to collect recycled raw
materials and scrap will intensify, as prices
of nonferrous metals remain high and theworld transitions to circular societies

In the medium-term plan for fiscal 2020 - 2022, we will invest
300 billion yen over the three years in the development of advanced materials. Of this amount, 160 billion yen will be allocated to strategic investments for future growth, including capacity
expansion, development of new materials, and exploration ofminor metal mining interests. In addition, we will redefine our160

Business Maintenance

80

Upstream Business

60

20

50
Focus Businesses

55

Base Businesses

35

Our Group Initiatives
Base
Businesses• Improve operations at the Caserones Copper Mine, continue to reduce costs at allstages of the process, and strengthen maintenance systems• Implementing plans for increased collection and processing of recycled raw
materials; acquired a major recycler in Canada. Accelerate technologicaldevelopment to increase the percentage of recycled raw materials (input ratio of
raw materials or content ratio in products) to 50% or more by 2040 to achieve ourGreen Hybrid Smelting plan by 2050

Focus
Businesses• Increase production capacity and construct a new plant to meet growing demand.
In anticipation of the next medium-term business plan and beyond, we havedecided to construct a new plant in Hitachinaka City, Ibaraki Prefecture; we will alsoacquire a large site in the United States• Create a more resilient supply chain by increasing production capacity flexibly
in parallel with business continuity measures such as strengthening overseas
locations in preparation for disasters and geopolitical risks, securing raw materials
in cooperation with other companies, including making a tantalum and niobium
smelting and processing manufacturer a wholly owned subsidiary, etc.

Technology
Development• Nurture and quickly commercialize businesses that will become pillars of the next
generation (next-generation semiconductor materials, metal powder for 3D printers,
crystalline materials, battery materials, LiB recycling (closed loop))• Promote industry-academia collaboration (FY2021 onward; new Materials andTechnology Collaborative Research Laboratory in cooperation with The National
Institute of Advanced Industrial Science and Technology, Endowed Research Unit
for Nonferrous Metal Resource Recovery Engineering (JX Metals Endowed Unit, theUniversity of Tokyo) [Phase 3], etc.)

precious metals, and sulfuric acid. In the Focus Business, wehave raised our target 43.0 billion yen over the original 100.0
billion yen target in our plan. This revision reflects increasing
sales stemming from strong demand growth. Based on thisoutlook, we will continue to make company-wide efforts to establish earnings and a financial base. In addition, we will promote
the use of ESG-related indicators as important management
indicators.

• JX Nippon Research Institute for Technology & Strategy Co., Ltd. aims to becomea think tank in the field of nonferrous metals with a diverse pool of high-level humanresources

ESG
Management• Promote initiatives to achieve long-term environmental targets (50% reduction ofGroup CO2 emissions by fiscal 2030 compared to fiscal 2018, and net zero CO2emissions by fiscal 2050) as a response to climate change•D evelop the Sustainable Copper Vision and fulfill the dual missions of establishingstable supply systems and conducting ESG-oriented production/supply of copper,
indispensable for achieving carbon neutrality, through Green Hybrid Smelting•E stablish technologies and business models for closed-loop recycling of automotive
LiBs with partners in Japan and overseas

Operating Profit(Unit: billions of yen)

Results for Fiscal 2020
Mineral Resources BusinessResults for Fiscal 2021

34.9

72.1

Outlook for Fiscal 2022

2020-2022 Three-Year
Cumulative Total

80.0

Base Businesses

287.3
Metals & Recycling Business

27.3

41.0

32.0

Functional Materials Business, Thin
Film Materials Business, Other

31.1

54.5

57.0

142.6

Common Business Expenses(15.2)(9.4)(39.0)(63.6)

Total

78.1

158.2

130.0

366.3

Focus
Businesses

Strategic Investments

ESG

Technology
Development(Unit: billions of yen)

Targets and Progress of the Medium-Term Management Plan for
Fiscal 2020 - 2022
When we formulated the current medium-term management
plan, we set the operating income target at 170 billion yen for
the three-year cumulative period. However, against the backdrop of the aforementioned business environment, we expect
to increase profits in both Base and Focus Businesses. We increased our Base Business target by 192.0 billion yen over our
original medium-term management plan, despite the impact of
COVID-19. This revision mainly reflects higher prices for copper,

ESG investment quota of
20 billion yen to stimulate ESG activities, suchas decarbonization andresource recycling.

(Breakdown of Strategic
Investments)

Nippon Mining & Metals Group reaffirmed our recognition in
August 2022 that Copper is an essential material for achievingcarbon neutrality. We developed the Sustainable Copper Vision
as a policy for the supply and ongoing evolution of sustainablecopper. Given that the environment surrounding the Group willcontinue to change throughout fiscal 2022 and beyond, byclearly understanding these social changes, we aim to fundamentally change our organizational culture.

With significant changes in social trends, the Group formulated
a Long-Term Vision out of a sense of crisis about continuing withour conventional business model. We are now aiming at transforming ourselves into a technology-based company. Fiscal
2021 saw changes in the industry structure due to the impactof the spread of COVID-19, growing momentum toward theSDGs and ESG management, and accelerated movement toward social demands for carbon neutrality. In response, the JX

Cumulative Total of Investment Plan
for Three years: 300 billion yen

Organizationand Human
Resources• Develop human resources across four perspectives: (1) digital and DX humanresources; (2) value-added human resources; (3) ESG human resources; and (4)global human resources*The outlook for Fiscal 2022 and the three-year cumulative outlook are current as of May 2022.

13 JX Nippon Mining & Metals Corporation

Sustainability Report 2022 14

Section 1 Vision and Value

Global Network (as of September 30, 2022)
JX Nippon Mining & Metals has many production sites and Group companies in Japan and overseas. By utilizing this Group network,
we are able to meet the increasingly sophisticated and diverse needs of our customers and society, and provide them with newvalue.

EuropeNorth America

Japan

Frankfurt Office

eCycle Solutions Inc.

JX Nippon Tomakomai Chemical Co., Ltd.

JX Nippon Mining & Metals Europe GmbHJX Nippon Mining & Metals USA, Inc.

Esashi Works, JX Metals Precision Technology Co., Ltd.

TANIOBIS USA LLC

Ichinoseki Foil Manufacturing Co., Ltd.

Asia

JX Metals Circular Solutions Europe GmbHTANIOBIS GmbHJX Nippon Mining & Metals Korea Co., Ltd.

Shirakawa Plant, JX Nippon Takasho Co., Ltd.

TANIOBIS Smelting GmbH & Co. KG

Poongsan-Nikko Tin Plating Corporation

Isohara Works

Nippon LP Resources UK Ltd.

JX Nippon Mining & Metals Shanghai Co., Ltd.

JX Nippon Foundry Co., Ltd.

Nikko Metals Shanghai Co., Ltd.

Hitachi Works

Nippon Mining & Metals (Suzhou) Co., Ltd.

Hitachi Works, JX Metals Smelting Co., Ltd.

Nikko Fuji Precision (Wuxi) Co., Ltd.

JX Nippon Environmental Services Co., Ltd.

JX Nippon Mining & Metals Dongguan Co., Ltd.

Kamine Clean Service Co., Ltd.

Hong Kong Nikko Shoji Co., Ltd.

Hitachi Plant, Toho Titanium Co., Ltd.

Shenzhen Nikko Shoji Co., Ltd.

Mito Plant, TANIOBIS Japan Co., Ltd.

Nikko Metals Taiwan Co., Ltd.

Tsukuba Factory, Furuuchi Chemical Corporatio

JX Nippon Mining & Metals Philippines, Inc.

Tatebayashi Works, JX Metals Precision Technology Co., Ltd.

TANIOBIS Co., Ltd.

Nasu Works, JX Metals Precision Technology Co., Ltd.

Middle East	Advanced Metal Industries Cluster and Toho Titanium Metal
Company Limited

Materials Service Complex Malaysia Sdn. Bhd.

Central and South America

JX Nippon Mining & Metals Singapore Pte. Ltd.

JX Nippon Exploration and Development Co., Ltd.
Tokyo Denkai Co., Ltd.
Kurami Works
Kurami Office, JX Nippon Coil Center Co., Ltd.

Compania Minera Quechua S.A.

Kawasaki Office, JX Nippon Coil Center Co., Ltd.

Escondida Copper Mine

Chigasaki Plant, Toho Titanium Co., Ltd.

Caserones Copper MineJX Nippon Mikkaichi Recycle Co., Ltd.

Los Pelambres Copper Mine

Kurobe Plant, Toho Titanium Co., Ltd.

Chile Office

Kakegawa Works, JX Metals Precision Technology Co., Ltd.

JX Nippon Mining & Metals Chile SpAJX Metals Circular Solutions Co., Ltd.

JX Nippon Mining & Metals Exploration Chile Limitada

Takatsuki Plant, JX Metals Trading Co., Ltd.

SCM Minera Lumina Copper Chile

Yahata Plant, Toho Titanium Co., Ltd.
Wakamatsu Plant, Toho Titanium Co., Ltd.

Corporate Profile

Saganoseki Smelter & Refinery, JX Metals Smelting Co., Ltd.

Company NameJX Nippon Mining & Metals Corporation

Employees

3,275 (as of March 31, 2022)

Paid-in Capital

75.0 billion yen (wholly owned by ENEOS Holdings,
Inc.)

Employees

10,113 (as of March 31, 2022)

Representative

Murayama Seiichi, President and Representative
Director

Domestic
Operating Sites

Revenue

1,293.0 billion yen (fiscal 2021, consolidated)•Hitachi Works (Ibaraki Prefecture)•Isohara Works (Ibaraki Prefecture)•Kurami Works (Kanagawa Prefecture)•Technology Development Center (Ibaraki
Prefecture)

Head Office10-4, Toranomon 2-chome, Minato-ku, Tokyo
105-8417, JapanThe Okura Prestige Tower

Overseas
Operating Sites*•Chile Office•Frankfurt OfficeBusiness Lines•Mineral Resources Business•Metals & Recycling Business•Functional Materials Business•Thin Film Materials Business•Tantalum and Niobium Business•Titanium Business

15 JX Nippon Mining & Metals Corporation

JX Nippon Mining & Metals Exploration Peru S.A.C.

Saganoseki Works, Japan Copper Casting Co., Ltd.
JX Metals Smelting Logitech Co., Ltd.
Kasuga Mines Co., Ltd.

* The JX Nippon Mining & Metals Group conducts business in 13 countries andregions outside Japan.

Sustainability Report 2022 16

Section 1 Vision and Value

Responding to International Norms andInitiatives
The Group recognizes compliance with international norms and initiatives as one of the most important issues across the entire
company. We will contribute to achieving a sustainable society by complying with social demands such as recent international
norms and initiatives. To this end, we are actively participating in initiatives. We also participate actively in nonferrous metals andother various industry associations, incorporating the knowledge gained through opinion exchanges and information sharing in ourbusiness activities.

Related Initiatives
United Nations Global Compact

International Council on Mining and Metals (ICMM)

The United Nations Global Compact is a global framework for companies
and organizations to act as good members of society and achievesustainable growth. We have been participating in the program sinceAugust 2008, supporting the 10 principles in four areas and are striving toachieve them.

The ICMM is an international organization established to promote thesustainable growth of society through the nonferrous metal industry
business. As a member of the ICMM, JX Nippon Mining & Metals
established the Code of Conduct in accordance with the ICMM Mining
Principles and are working to resolve various issues raised in the Position
Statements.

Communication with Industrial Associations

Name of Association

Japan Mining Industry
Association (JMIA)The Sulphuric Acid
Association of Japan

Japan Copper and Brass
Association (JCBA)

The Role of JX
Nippon Mining &Metals in
FY2021Chairman

Activity Content

The JMIA is an association of companies engaged in the smelting business and nonferrous
metal resource development. JMIA promotes the sound growth of the industry byconducting research and publicizing knowledge for technical improvement and making
policy proposals to concerned government ministries and agencies. The JX Nippon Mining &Metals Group served as chair of the association in FY2021.

Managing
Director

This association aims for the sound development of the sulfuric acid industry in Japan. JX
Nippon Mining & Metals is involved in the administration of the association as well as in thesurvey and reporting of supply and demand as a member of the Operations Committee andGeneral Affairs Committee.

Vice-Chairman

The JCBA works with member companies to promote progress and growth throughout theentire copper production industry. The Group sits on the Roadmap Committee to take partin the improvement of quality and the discovery of new demand. The Group is also involvedin the survey and reporting of market size as a member of the Statistics Committee.

WEB

Japan Society of Newer
Metals (JSNM)

Japan Catalyst Recovering
Association (JCRA)

Vice Chairman

ChairmanComprising companies engaged in the reuse of catalysts, JCRA was established to promote
the recycling of precious and minor metals through appropriate processing of used catalysts.
It holds periodical training for technical improvement and mutual communication among
members while engaging in the investigation and collection of statistics relating to recycling.
We provide the chairman of the association and is also involved in the publication of survey
reports as well as management of general meetings as a member of the PR Committee.

ICMM Website

Extractive Industries Transparency Initiative (EITI)Task Force on Climate-related Financial Disclosures (TCFD)

The EITI is the multilateral cooperation standard for the promotion of open
and accountable management of extractive resources with the goal of
reducing poverty and achieving sustainable development in resourceproducing countries. Being engaged in resource development at the
global level, JX Nippon Mining & Metals agrees to the goals of the EITI
and supports its activities.

The TCFD is an organization established by the Financial Stability Board(FSB) that recommends companies disclose climate change-related risks
and opportunities. In May 2019, ENEOS Holdings endorsed and signed
the recommendations set out by the TCFD. In response, the Group ismoving to disclose information in line with the aims of theserecommendations.

EITI Website

WEB

TCFD Website

https://eiti.org/

https://www.fsb-tcfd.org/

Carbon Disclosure Project (CDP)

Challenge Zero

The CDP is an international NGO based in London. It is an organizationthat collects, analyzes, and evaluates information on the environmental
activities of the world’s major corporations and discloses these results toinstitutional investors. Our company engages in the disclosure of
information on climate change and water safety, which the CDP has
identified as priority issues. We also disclose information throughquestionnaires to our business partners.

Challenge Zero is an initiative established by Keidanren, in partnershipwith the Japanese government, to encourage companies andorganizations to innovate toward creating decarbonized societies. The JX
Nippon Mining & Metals Group announced our participation in June 2020.

WEB

CDP Japan Website

https://www.cdp.net/en

17 JX Nippon Mining & Metals Corporation

WEB

https://www.icmm.com/

WEB
The JSNM was established to promote the sound growth of new metals that support
high-tech and related industries through research and the collection and provision of
information. JX Nippon Mining & Metals sits on the Compound Semiconductors
Subcommittee and the Target Subcommittee in order to be involved in the survey andreporting of market size as well as to take part in providing opinions and advice toconcerned government ministries and agencies. JX Nippon Mining & Metals also sits on the
Safety Committee to contribute to the improvement of health and safety throughout theindustry.

UN Website

https://www.unglobalcompact.org/

WEB

Challenge Zero Website

https://www.challenge-zero.jp/en/

Sustainability Report 2022 18

Section 1 Vision and Value
Responding to International Norms and Initiatives

GX LeaguePartnership Development Declaration
Outside Director Message

We have high expectations for global growth as
JX Nippon Mining & Metals adopts dynamicchanges to keep pace with the times.
The GX League, led by the Ministry of Economy, Trade and Industry(METI), is a framework for industry, government, and academia tocollaborate in the challenge of Green Transformation (GX) with a view toachieving carbon neutrality by 2050 and reforming Japan’s entire
economic and social system. We participate in GX activities, and we
expressed our support for the GX League Basic Concept.

WEB

GX League Website

The Partnership Development Declaration is an initiative that aims toincrease added value throughout the supply chain by having corporate
leaders declare supply chain-wide coexistence and coprosperity, that new
partnerships will transcend size, affiliation, etc., and that participants will
engage in desirable business practices with subcontractors. We
announced our participation and declaration in April 2022.

WEB

https://www.biz-partnership.jp/

WIPO GreenWhite Logistics Movement

WIPO GREEN is a framework for technology exchange launched by theWorld Intellectual Property Organization, a specialized agency of theUnited Nations. The aim of this organization is to spread the adoption ofenvironmental technologies and promote innovation. Entities participate
by registering environmental technology in the organization’s database.
WIPO then matches technology with individuals and organizations. We
have registered intellectual property related to our proprietary copperrecovery technology, the JX-Iodine Process, in the database.

The White Logistics Movement is a movement promoted by the Ministryof Land, Infrastructure, Transport and Tourism (MLIT) drives a movement
to encourage an understanding among companies and the publicregarding sustainable logistics. We announced our participation in April
2020, and our Logistics Department leads company-wide efforts in thisarea.

WIPO GREEN Website

WEB

https://white-logistics-movement.jp/

Copper MarkResponsible Business Alliance (RBA)

Established in 2019 by the International Copper Association (ICA), theCopper Mark is a framework to demonstrate the copper industry’s
responsible production and contributions to the SDGs of the United
Nations. In March 2022, we began the process of acquiring Copper Markcertification for the Saganoseki Smelter & Refinery and the Hitachi Works
operated by JX Metals Smelting Co., Ltd.

The RBA is an industry association consisting mainly of electronics
manufacturers and suppliers of electronic components. Many of ourcustomers are members of the RBA. The JX Nippon Mining & Metals
Group pursues stronger ESG initiatives by conducting activities inaccordance with the code of conduct established by the RBA.

WEB

Copper Mark Website

19 JX Nippon Mining & Metals CorporationWEB

My Role as an Outside Director
The JX Nippon Mining & Metals board of directors ensures thecompany meets the principles of the Corporate Governance
Code, establishing governance functions comparable to thoseof listed companies, even though the company is not publicly
traded itself. And since JX Nippon Mining & Metals is a manufacturing company in possession of superior proprietary technologies, the company’s management team is a group of highly
specialized professionals who naturally favor a focus on technology. As an economist, I recognize that one of the importantroles I fulfill as an outside director is to provide an economic
perspective to board deliberations. Over the next 10 to 20 years,
we will see entire business model transformations in the manufacturing industry. I strive to express my own views on the intersection between the company’s business and the economy inboard meetings.

White Logistics Campaign Portal Site

https://www3.wipo.int/wipogreen/en/

https://coppermark.org/

Itoh Motoshige

Partnership Development Declaration Portal Site

https://gx-league.go.jp/

WEB

JX Nippon Mining & Metals
Corporation
Outside Director

RBA Website

https://www.responsiblebusiness.org/

ESG Management and the Importance of Information
Disclosure
Climate change, circular economy, and respect for human rights
are the most important topics to address under the SDGs. Companies exist by making profits, but at the same time, it is important to provide sustainable value to all stakeholders. These stakeholders include the global environment, local communities, andemployees. Further, I think we can say that society expects us
to set more concrete targets and achieve specific results, notjust abstract theories.
To address climate change, for example, JX Nippon Mining& Metals set an interim goal to reduce total in-house CO2 emissions by 50% in fiscal 2030 versus fiscal 2018, achieve net zeroby fiscal 2050. The group is taking a positive stance towardachieving the goal of net-zero CO2 emissions by the year 2050.
It won’t be easy for the group to achieve this target. But I believe
it is very meaningful to demonstrate a stance to society using[Profile]
Born in 1951 in Shizuoka Prefecture. Professor Itoh graduated from the
University of Tokyo, Faculty of Economics in 1974. He obtained a Ph.D. ineconomics from the University of Rochester in 1979. His specialization is ininternational economics. After serving as a professor at the University of Tokyo,
he assumed his current post as professor in the Faculty of International Social
Sciences at Gakushuin University in April 2016. He has also been professor
emeritus at the University of Tokyo since June 2016. Mr. Itoh served as amember of the Council on Economic and Fiscal Policy for six years beginning in2013. He has been an outside director of the Company since April 2022.

concrete data and examples.
In recent years, many so-called watchdog shareholders
have nominated directors committed to decarbonization. In
some cases, institutional investors have joined corporate boards
in support of these nominations. This is a sign that investors
around the world look beyond short-term profits, recognizingthat climate change is a medium- to long-term business risk. In
light of this trend, it will be increasingly important to engage in
ESG finance, including transition finance. Expanding internationally required information disclosures, such as TCFD, will also be
increasingly emphasized.

The Importance and Role of the Nonferrous Metals
Industry
In economics, returns do not exist where there is no risk. JX
Nippon Mining & Metals is investing aggressively in its Focus
Businesses. In areas where demand is growing, such as semiconductors, battery recycling, and renewable energy, investments must be made to capture demand. In this context, theboard must recognize the potential risks, and then strive to diversify and minimize those risks. In addition to climate change,
which I mentioned above, geopolitical risks such as the friction
between the U.S. and China are on the rise. I believe the company should take advantage of its broad product lineup to diversify risks, keeping a flexible mindset.
From my perspective as an economist, I believe the sourceof the strength of the Japanese economy lies in raw materials,
and that the raw materials industry is indispensable to Japan.
Every field related to materials requires a high level of expertise,and nonferrous metals are one of the fields in which the company plays its most important role. I look forward to JX Nippon
Mining & Metals further refining the strengths it already possesses, growing globally as it undergoes dynamic transformations
to meet the needs of the times.

Sustainability Report 2022 20

Section 2

Value Creation Strategy

Value Creation Model
Key Social
TrendsExpanding demand for advanced materials

Global acceleration in addressing
climate change

The spread of COVID-19 has accelerated the advance of the datasociety, and demand is increasing for smart devices andcommunication infrastructure.

As environmental issues become more
apparent around the world, global
companies are accelerating concrete actions
to address climate change, particularly
toward decarbonization.

 s supply shortages of semiconductors and other materials
A
become apparent, demand is increasing rapidly for materials toresolve these shortages.

Deepening mineral resource shortages/
depletion
With greater resource consumption, competition
is intensifying in acquiring high quality, low cost
resources.

The JX Nippon Mining & Metals Group works to identify and recognize thesocial issues calling for resolution by JX, and seeks to promote a value
creation model in growing sustainably and resolving social issues.

There is focus on nonferrous metals to support
future infrastructure and growing concerns about
depletion

Business Activities (Business Model)

Long-term Vision

Inputs (Capital)
Financial capital$Intellectual capital

By pivoting from being an equipment industry company to atechnology-based company, we will realize a highly profitable structureeven in the face of intensifying international competition and contributeto the realization of a sustainable society as targeted by the SDGs

Businesses such as the mineral resources business and the smelting
and refining business where we will enhance competitiveness andbolster the organizational foundation by further improving production
efficiency, etc.
Implementing structural reforms (e.g. thorough optimizations andreviewing resource portfolios) to maintain a certain level of profits

Human capitalCore of our growth strategy

These businesses, like advanced materials and technology-based
recycling, establish competitive advantage by using technology todifferentiate

Manufacturing capital

Expanding the scope of revenue by building a system that constantly
maintains a product/technology lineup with small-lot, diverse
production and high profitability

Materiality
Social/Relationship capital

P35

Given the business environment where the Group operates and society’schanging demands, we have established six materialities (priority issues)that we will prioritize, incorporating them into specific activity plans.
Contributing to Environmental Conservation

Natural capital

Respect Human Rights

Refined copper

Advanced materials-derived products
support a data-driven society,contributing to rich, convenient lifestyles

Metals & Recycling
Business

Treated rolled copper
foil

P30

Functional Materials
Business
P31

Sputtering targets

P32

High-purity tantalum
powderTantalum andNiobium Business

P77

Titanium Business
P94

Titanium sponge

Conducting community-based social
contribution activities at domestic &overseas locations, as we haveconsistently valued harmony with local
communities since our founding(Toho Titanium Co., Ltd.)

P34

P99

Sustainable Copper Vision

Limited resources are effectively utilized
through recycling technologies, realizing
a rich and sustainable worldThin Film Materials
Business

P61

P89

Coexistence and Co-Prosperity With Local Communities
Strengthen GovernanceOutcomes (Created Value)

P33

P47

Provide Advanced Materials That Support Lives and Lifestyles
Create Attractive Workplaces

Mineral Resources
Business

Outputs (Products/Services)
P11

P29

Base Businesses

Focus Businesses

Medium-Term
Management Plan

P23

Offer a stable supply system to support growing demand and conduct
ESG-oriented production and supply (decarbonized, circular economy, etc.)

21 JX Nippon Mining & Metals Corporation

Sustainability Report 2022 22

Section 2 Value Creation Strategy

Special Feature 1

Sustainable Copper Vision

The JX Nippon Mining & Metals Vision for
Sustainable Copper

Why is Copper Required?

Green Hybrid Smelting for Sustainable Copper that fulfills two missions

Copper is an essential material for achieving carbon neutrality, thereby copper suppliers and users
are regarded as Green Enablers.
Upstream

Change in Power generation mix

Power generation mix
reliant mainly on
fossil fuels such ascoal and gas

Emergence andexpansion toward
renewable energy
sources such as windand solar power

4x

Achieving Two Missions in Parallel
Offer a Stable Supply System toSupport Growing Demand

Renewable energy requires aboutfour times more copper per MW ofgenerating capacity than fossil fuels

Green Hybrid Smelting
Green Hybrid Smelting
Combines the Use of Copper Concentrates and Scrap

Conduct ESG-Oriented Productionand Supply (Decarbonized, Circular
Economy, Etc.)

Low CO2 melting and separation using heat fromthe combustion of sulfur content, etc.

•Stable Supply Capacity

Fossil fuels: Up to 1 ton/MW
Renewable energy: Up to 4 tons/MW

Copper Concentrates

Ensure stable supply capacity to meet growing copper demand by a hybrid
combination of copper concentrates and scrap raw materials

2022•Reduce Carbon Footprint (CFP)

Mid-Stream Expanded transmission and distribution
Power supply
through centralized
transmission anddistribution systemsof electricity

Transmission to
decentralized
transmission anddistribution systems

2x

Maximize the utilization of heat from the combustion of sulfur content, etc.,
contained in copper concentrates and use renewable energy in mines andsmelters, etc.

Decentralized network requires about
twice as much copper as comparedto the conventional supply grid

Vehicle design andsupply chain creation
using internal
combustion engines
as the energy source

Conversion of energy
sources in connection
with the spread ofenvironmental friendly
vehicles (EVs, FCVs*,
etc.)

Increase the percentage of recycled raw materials (input ratio of raw
materials or content ratio in products) to 50% or more through technologicaldevelopment, the establishment of a raw materials collection system, etc.

Centralized: Up to 10 tons/km
Decentralized: Up to 20 tons/km*Fuel cell vehicles

4x•Promote Responsible Procurement

Acquire the Copper Mark* (industry ESG standard), etc.
Continue to invest in facilities to increase production of high-performancecopper products that support higher percentages of recycled raw materials,
greater energy efficiencies, etc.

Electric Vehicles incorporate and use
about four times more copper thaninternal combustion engine vehicles

While demand for copper will continue to grow over the longterm, the supply of copper ore and recycled raw materials fromexisting mines is limited, and the supply-demand balance forcopper is likely to be very unstable. This delicate balance is why
copper ore and recycled raw materials will be essential in meeting the demand for copper, without which the world cannot
achieve decarbonization.

Recycled Raw
Materials: 50%

JX Nippon Mining & Metals Copper Products
We supply copper products through Green Hybrid Smelting. Both copper
concentrates and scrap can be used as raw materials. The heat generated by
the copper concentrates itself can be used to melt recycled materials, making
fossil fuels virtually unnecessary.

Green Hybrid Smelting has been selected as one of the 26 mostnoteworthy examples of Japan’s circular economy initiatives in Case
Studies (2022) published by the Japan Partnership for Circular
Economy, which was established by the Ministry of the Environment,
the Ministry of Economy, Trade and Industry, and Keidanren.

* In March 2022, the Saganoseki Smelter & Refinery and Hitachi Works of JX Metals
Smelting Co., Ltd. began procedures to obtain Copper Mark certification. CopperMark is an international accreditation for responsible copper production. This is thefirst attempt by a company in the Japanese nonferrous metal industry to earn thisaccreditation.

Internal combustion engine vehicles: 24 kg/vehicle
Electric Vehicles: 94 kg/vehicle

What Measures Will We Take?
We will pursue four measures to evolve and gain wider use of Sustainable Coppers.

What is Sustainable Copper?
Meeting increasing demand for copper requires
an increased supply ofcopper ore and recycled raw materials

2040 (Target)•Increase Percentage of Recycled Raw Materials•Make Capital Investments

Downstream Shift in electricity usage

Recycled Raw
Materials

1

Projected Future Demand by Source(Refined Copper, Units: Millions of tons)
Demand History
Demand Forecast

Reduce CFP

2

Increase recycling ratios

3

Promote responsible
procurement and othermeasures

4

Form Green Enabling
Partnerships

Recycled Raw Materials
Copper Concentrates From Existing Mines

60
51
37

40

31
23

20

38

41

46
Shortfall

25
This shortfall in supply must becovered by securing copper ore
through wider use of recycled raw
materials, improved utilization
rates of existing mines, and thedevelopment of new mines.

0
2010
15
20
25
30
35
40
45
2050
*Compiled by JX Nippon Mining & Metals based on IHS Global Insights, MineSpansKEYWORDS

Reduce CFP in Copper
concentrates mining and thetransportation value chain• Convert construction equipmentused in mines to electric power• Use electricity derived fromrenewable sources• Improve efficiencies and optimize
transportation, etc.

Develop technologies to increase
the ratio of recycled raw materials
for copper products and bolster
raw materials collection systems• Develop technologies to increase theratio of recycled raw materials• Expand facility capacity to increase
recycled raw materials collection,etc.

Engage in a wide range of ESG
measures, including sustainablesourcing, and certificationacquisition• Pursue measures that consider andencourage global environmental
conservation, human rights, andcontributions to local communities• Acquire Copper Mark and othercertifications that meet ESG
standards set by the International
Copper Association (ICA)

Evolve and gain wider use ofsustainable copper• Form partnerships with companies
that work together to promotesustainable copper, and accelerate
the transition to decarbonized andcircular economies• Engage in product and scrap
collection, raw materials reuse, andjoint technology development withpartners, etc.

Carbon Footprint (CFP): The amount of greenhouse gas emissions throughout the entire life cycle of a product or service, from procurement of raw materials to disposal and recycling, converted
to CO223 JX Nippon Mining & Metals Corporation

Sustainability Report 2022 24

Section 2 Value Creation Strategy
Special Feature 1 Sustainable Copper Vision

Four Measures to Evolve Sustainable Copper
1

3

Reduce CFP

Reduce Scope 1 and 2 CO2 emissions
We are striving to reduce Scope 1 CO2 emissions (fuels andindustrial processes) through energy conservation, fuel conversion, and carbon capture and recycling. In connection with
Scope 2 emissions (electricity), we completed the switch toCO2-free electricity or renewable electricity sources at the Caserones Copper Mine, the Saganoseki Smelter & Refinery and
Hitachi Works operated by JX Metals Smelting Co., Ltd., andother major sites in Japan and overseas. We reduced CO2 emissions significantly as a result of these efforts. We are also considering the generation of our own renewable energy sources.
ReferenceSpecial Feature 2: The JX Nippon Mining & Metals Group
Climate Change Strategy P37

The Caserones Copper Mine has reduced CO2
emissions significantly by switching to electricity
derived from renewable sources

2

The JX Nippon Mining & Metals Group strives actively to reduce
Scope 3 CO2 emitted from other companies within our supply
chain. For example, the Group is considering a conversion to
EVs and FCVs, latest technologies for transportation (see below), and the introduction of alternative fuels in connection with
our logistics activities. Mines other than the Caserones Copper
Mine in which we have an equity stake are pursuing CO2-freeelectricity and the electrification of heavy machinery.
Direction of Travel

Ocean Wind

Dynamic
Faster Current
Lift= Lower Pressure

Hull

KORYU After the Installation of Rotor Sails
Image of Magnus Effect

Slow Current= Higher Pressure

Green Hybrid Smelting Roadmap

Recycled Raw
Materials:

50%
Recycled Raw
Materials:

25%

Hitachi Works, JX Metals Smelting Co.,Ltd.

The Group is also bolstering ESG initiatives by conducting
activities in accordance with the RBA Code of Conduct. Of thesites that underwent VAP audits to assess compliance with the
RBA Code of Conduct, the Isohara Works and the Chigasaki
Plant of Toho Titanium Co., Ltd. received a perfect score of 200
points, being awarded Platinum status, the highest status under
the RBA certification program.

18. Waste management
19.	Deposition sitemanagement
20.	Contamination,
pollution
21.	Biodiversity, protectedareas
22. Mine closure planning23.	Community health andsafety24.	Community
development
25. Small-scale mining
26. Human rights
27.	Security and humanrights
28. Indigenous rights
29.	Land acquisition andresettlement
30. Cultural heritage31.	Mineral resources
supply chain due
diligence
32.	Transparency anddisclosure

Form Green Enabling Partnerships

We form Green Enabling Partnerships with companies who work together to promote sustainable copper. Through these partnerships, we
accelerate the transition to decarbonized, circular economies as well as engage in product andscrap collection, the raw materials reuse, andjoint technology development.

Green Enabling Partnership Concept

Achieving Carbon Neutrality
Base Businesses

Gain Wider Adoption of and Expand Green Enabling Partnership
JX Nippon Mining &Metals Group’ s Scope of Action
・Strengthen sustainability of nonferrous metals
・Develop products for technological advancements
・Make capital investments for stable supply
・Engage in energy conservation,
renewable energy, and energy conversion
・Comply with ESG Code of Conduct/Initiatives•Expand pre-processing technology for recycled raw materials(AI sorting, crushing, drying)•Treat recycled raw materials via roasting[Technology
Development]•Smelting process optimization(impurity control, heat recovery technology)[Raw Materials
Collection][Other]•Develop and use new pretreatment
technologies for recycled raw materials•Introduce carbon-free heat sources(hydrogen, etc.) into the smelting process•Establish a cooperative system with recyclers•Expand capacity for receiving, sampling, analysis, and evaluation•Conduct closed-loop recycling with partner companies

2030(3) Increasing the collection of raw materials by
expanding our recycling center in Taiwan (Changpin
Recycle Center)(4) Acquired all shares of eCycle Solutions Inc.,
Canada’s largest e-waste collection and processing
company

Nonferrous Metal
Consumers
Recyclers

Supply Chain Operators
Universities and Local Governments
Organizations Supporting
Circular Societies

Lateral Cooperation
Among Related Industries
Government and Legislation
Consumers/Individuals

Green Enabling Partnership Logo

•Visualize CFP and cooperate with logistics partners

Case Study: Expanding Raw Materials Collection Systems

25 JX Nippon Mining & Metals Corporation

Saganoseki Smelter & Refinery, JX
Metals Smelting Co., Ltd.

4

2022

(1) Using AI to physically sort e-waste (waste home
appliances and electronic devices) at the Hitachi
Works
(2) E
 xpanding raw materials collected at the JX Metal
Smelting Co., Ltd. Oita Recycling Logistics Center

1.	Compliance with laws
and regulations
2. Ethics
3.	Stakeholder
engagement
4. Supplier relations
5. Child labor
6. Forced labor
7. 	Freedom of
association andcollective bargaining
8. Discrimination
9. Gender equality
10. Work hours
11. Remuneration
12.	Occupational healthand safety
13. Grievance system
14.	Environmental risk
management
15.	Greenhouse gas
emissions
16. Energy consumption
17.	Water management
and conservation

Dynamic lift is generated when thewind strikes a rotating object

Increase recycling ratios

Our flash smelting furnace process not onlyuses the reaction heat of the raw copper concentrates efficiently to dissolve raw materials,
but also uses the excess reaction heat to melt
the recycled raw material, eliminating the needfor fossil fuels or other resources. We pursue
the optimal combination of copper ore andrecycled materials through our Green Hybrid
Smelting to achieve sustainable production ofcopper. Here, we aim to evolve Green Hybrid
Smelting that uses 50% or more recycled raw
materials (input ratio of raw materials or content ratio in products) by 2040. The table on
the right shows specific issues andmeasures.

The Saganoseki Smelter & Refinery and Hitachi Works operated
by JX Metals Smelting Co., Ltd. are working toward CopperMark certification under an audit of 32 ESG criteria (see list atright) as defined by the International Copper Association (ICA).

Scope 3 CO2 Emissions Reduction

Case Study: New Technologies in Ocean Transportation
In collaboration with BHP, a major mineral resources company, we
are looking into installing rotor sails on the KORYU, the JX Nippon
Mining & Metals Group copper concentrates and sulfuric acid cargo
ship. Rotor sails are a type of ship propulsion mechanism that uses
the Magnus effect to convert pressure differences generated by therotating cylinders on the hull into dynamic lift. We expect thismechanism to reduce CO2 emissions by 5% as a result of fuelsavings. Final safety verifications are underway, and we expect toinstall and begin operations in summer 2023 at the earliest.

Promote responsible procurement and other measures

Focus Businesses

2040

KEYWORDS
Scope 1: Direct greenhouse gas emissions from in-house fuel use and industrial processes
Scope 2: Indirect greenhouse gas emissions from the use of electricity, heat, and steam supplied by other companies
Scope 3: Greenhouse gas emissions of other companies related to business activities (e.g., use and disposal of products) other than Scope 1 and Scope 2
Responsible Business Alliance (RBA): An industry association consisting mainly of electronics manufacturers and their suppliers, including many of our customers in the advanced
materials field. The RBA works to improve social, environmental, and ethical aspects of the global supply chain

Sustainability Report 2022 26

Section 2 Value Creation Strategy

The JX Nippon Mining & Metals Groupfor the Future Society

Rolled Annealed Copper Electro-deposited
Copper Foil for FPC
Foil for FPC

Copper Foil Surface
Treatment for HighFrequency

EMI Shielding Filmfor FPCAs a leader in the nonferrous metals industry, our Group supplies nonferrous metal resources, such as copper, minor
metals, and precious metals, as well as advanced materials. The resources we provide support the richness ofsociety at its very roots, from infrastructure to electronic devices, and drive society’s advancements.
Flexible Printed
Circuit Board= The JX Nippon Mining & Metals Group’s
advanced materials
Tantalum and Niobium High Purity
Pentachlorides
Metal Chloride

Magnetic Material
Sputtering Target

Sputtering Target for
Semiconductors for LSI

Data Storage /Processing

Ta₂O₅/Nb₂O₅ Powder
Sn-Cu-PET

Sputtering Target
for Optics

SAW Filter

EMI Shielding Tapefor COF/COP

Cable

HDD
Advanced LSI /MemoryHigh Purity Copper

Ag Bonding Wire

Electroless UBM
Plating Service

Connector

Lowα Tin for Soft
Error Reduction

ECU / Electronic Module

High Current
Connector

Connecting /Communicating

3D Formable Sheetfor Electromagnetic
Shielding
EMI Shielding Tapefor Metal Can

Negative Thermal
Expansion Material

Electro-deposited
Copper Foil for FPC

Via Filling Paste for
Thermal Release

SIM/SD Card Connector Connector for
Wiring Harnesses

Corson AlloyPCB Connector

Flexible Printed Circuit
Board Connector

Board to Board Connector

Titanium Copper

USB Type-C

Floating Connector

Press-Fit Connector

OpticalCommunication

Sensing / Capturing

Energy Generation /Storage

CameraSputtering Target
for Optics

Sputtering Target
for Transparent Electrodes/Semiconductor

Display

Precision Stamping
InP Wafer

Nb₂O₅ Powder

Titanium Copper Foil
Precision Plating
Millimeter-wave Radar / LiDAR
Solar CellYAG Ceramics

InP Wafer

InP Wafer

Copper Foil Surface Treatment
for High Frequency
Radiologic Exam

Surface Treatment
Agent

Flexible Manufacturing /Miniaturization Lithium Ion Battery

Pressure Sensor
CdZnTe Substrate

Tantalum Capacitor

Tantalum Powder

Optical Sensor
Ta₂O₅/Nb₂O₅ Powder
Sputtering Target for Optics

LLTO(Ceramics Electrolyte)

Magnetic Material
Sputtering Target

Rolled Copper Foil for Negative Current Collector

Magnetic Sensor
Composite ofMulti MaterialHigh Precision Stamping and Plating

The stable supply of copper, for which demand is expected to increasein the IoT/AI and decarbonized societies of the future, is an importantsocial mission for the Group.

Additive Manufacturing

Sn-Cu-PET

Precision Plating

Precision Stamping

Titanium Powders

Tantalum and Niobium
Powders

Metal-Ceramics Composite
3D Formable Sheetfor Electromagnetic Shielding

A Sustainable Supplyof Materials
Copper Sulfides ore

27 JX Nippon Mining & Metals Corporation

Copper Oxides ore

Electronic Waste

Scrap Copper

Electrolytic copper

Copper Powder

Sustainability Report 2022 28

Section 2 Value Creation Strategy
Strategies By Business

Mineral Resources
Business

Metals & Recycling
Business

Since acquiring equity at the Caserones Copper Mine in Chile
in 2006, we have taken a central role in its development, withcopper concentrate production beginning in May 2014. We
have further invested in some of the world’s largest copper
mines, including Los Pelambres and Escondida, also in Chile.
The amount of copper produced (total equity base) reachedabout 190,000 tons in fiscal 2021.

We are able to efficiently use our smelting processes to takecopper concentrate and recycled raw materials and supply
high-quality metal products such as copper and precious andminor metals. These products are then offered through astable supply in Japan and parts of Asia. Under the Green
Hybrid Smelting process, which utilizes surplus heat fromcopper concentrate processing, we will work to build asustainable recycling-oriented society with the goal ofincreasing the ratio of recycled raw materials (either in raw
material input or in product content) to at least 50% by 2040.
In our detoxification processing treatment of industrial wastematerials, we also use incineration and melting technologies
aiming for “zero emissions,” which means no generation of
secondary waste destined for disposal to landfills.

JX Nippon Mining & Metals Corporation
Executive Officer, General Manager Mineral Resources Division,
Senior Executive Staff, Metals & Recycling Division, Senior
Executive Staff, Technology Group

Masaki Nobuharu


Establish
stable operation and enhance business value at the Caserones Copper Mine
Seek and promote new projects (exploration, development, and operation) with a prospect of supplying raw materials to
our midstream and downstream businesses

Review of Fiscal 2021

securing stable raw materials for downstream businesses, weestablished a cross-divisional project team to evaluate and study
specific projects, focusing on tantalum and titanium.

Outlook for Fiscal 2022
At the Caserones Copper Mine, while continuing with controls
for COVID-19, we will further strengthen our profitability throughimprovement of operation and maintenance that could increase
operation level and promote cost improvements.
Regarding the Los Pelambres Copper Mine, we will focus
on the completion of the expansion plan started in fiscal 2019.
Also, with a prospect of starting businesses, we will move forward with the investigation and survey of various minerals
around the world including minor metals and silicified ore in orderto achieve stable supply of raw materials based on future needs
in our midstream and downstream businesses.

TOPICS
Exploration Around the Kasuga and Iwado Mines (Fiscal 2021)
Currently, the JX Nippon Mining & Metals Group operates the Kasuga and Iwado Minesin Makurazaki City, Kagoshima Prefecture, where it mines and supplies gold-bearing
silicified ore to the Saganoseki Smelter & Refinery. Silicified ore is an auxiliary raw material
which is added during the copper smelting process. Gold-bearing silicified ore contributes not only to the stable operation of copper smelters but also to maintaining profitability in our Base Businesses. The Mineral Resources Division has been promoting exploration activities since fiscal 2018 in the areas surrounding the Kasuga and Iwado minesin order to develop new gold-bearing silicified ore mines. In fiscal 2021, we conducted
detailed geological, geochemical and geophysical surveys to determine ore volume andgold content in the prospective mining areas identified in the previous surveys, and to as
well as the distribution of surface gold grades.

29 JX Nippon Mining & Metals Corporation

Senior Executive Officer, General Manager, Metals & Recycling
Division, Senior Executive Engineer, Technology Group

Yasuda Yutaka

Key Strategies

Key Strategies

At the Caserones Copper Mine, we maintained an optimal operation with consideration given to controlling COVID-19 andwater usage restrictions. In addition, we have worked to make
improvements for even more stable and efficient operations withintroducing automatic control through cross-functional activities
by the promotion team. Not only that, but we worked to makeour equipment maintenance and materials procurement more
efficient. Although production declined due to the impact of a
strike in August during mining union labor negotiations, we
successfully earned higher year-on-year profits in fiscal 2021,
mainly due to higher copper prices.
On the other hand, due to a decrease in precipitation, theLos Pelambres Copper mine operated under water usage restriction in the second half of the year, resulting in lower production year on year.
As for new mine development projects, in the interest of

JX Nippon Mining & Metals Corporation● Pursue total maximization of the smelting and recycling businesses and promote productivity improvement● Promote various measures to realize Green Hybrid Smelting

Review of Fiscal 2021
During fiscal 2021, we worked to increase the processing ofcopper concentrates from the Caserones Copper Mine andother mines in which we have equity, as well as to increase theprocessing of recycled raw materials that contribute to resource
recycling, thereby strengthening the competitiveness of each ofour manufacturing locations.
In the Recycling Business, in March 2021, we increased theprocessing capacity of the Changpin Recycle Center in Taiwan
by 2.4 times and established the JX Metal Smelting Co., Ltd.
Oita Recycling Logistics Center near the Saganoseki Smelter &Refinery. In addition, we expanded our pretreatment facilities,
which began operations in April 2022. Efforts were also madeto increase the recovery of minor metals. On the other hand,
imports of recycled raw materials decreased due to reduced
electrical and electronic waste discharged as a result of
COVID-19, logistics disruptions, and rising freight fares, butefforts were made toward collection within Japan and neighboring regions to minimize impact.
In the Metals Business, the supply-demand balance forsulfuric acid tightened and export prices remained particularlyhigh. Copper prices were high throughout the period. Purchasemargins for raw material copper concentrates were low at the

beginning of the period, but gradually recovered against the
backdrop of steady production ramp-ups at new mines andother factors.

Outlook for Fiscal 2022
We will continue safe and stable operations at all sites, including
the Saganoseki Smelter & Refinery. On the other hand, with no
improvement expected in margins for purchasing raw material
copper concentrates, we will maximize earnings by pursuing
total maximization of the smelting and recycling businesses andimproving productivity. Specifically, we will increase investment
in facilities at the Saganoseki Smelter & Refinery, which is working towards increased processing of recycled raw materials,
coupled with efforts to increase procurement of these recycled
raw materials, including through acquisition of Canadian recycler
eCycle Solutions Inc., pursuing an increase in processing of
high-margin materials and a feed mix optimal for earnings.
In addition, we will promote initiatives to achieve net zeroCO2 emissions, improve operations and promote cost reductions by streamlining logistics between locations with a bird’s
eye view of the supply chain, and otherwise work to further
strengthen our business and realize the SDGs and ESG.

TOPICS
Initiatives to Increase Collection and Treatment of Recycled
Raw Materials

Geophysical exploration in progress

In Japan, we have established the JX Metal Smelting Co., Ltd. Oita Recycling Logistics
Center (Oita City, Oita Port, Ozai Nishi-ku), a new collection base for recycled raw materials.
Operations there launched in October 2021. In addition, we expanded our kiln furnaces,
which are pretreatment facilities for recycled materials, at the Saganoseki Smelter & Refinery. In January 2022, we began test runs of these facilities, successfully launching full-scale
operations in the following April. Meanwhile, overseas, we will acquire eCycle in fiscal 2022
as mentioned above and are promoting the procurement of more recycled raw materials by
utilizing our overseas locations. Through these efforts to further increase the volume of recycled raw materials handled, we will contribute to building a sustainable recycling-oriented
society and strengthen the competitiveness of our businesses.

JX Metal Smelting Co., Ltd. Oita Recycling Logistics Center

Sustainability Report 2022 30

Section 2 Value Creation Strategy
Strategies By BusinessThin Film Materials
Business

Functional Materials
Business
Employing advanced metal fabrication technology cultivatedover the years of business, JX Nippon Mining & Metals has
become a global supplier of treated rolled copper foils used in
flexible printed circuit boards, as well as of precision Cu alloy
products including titanium copper, Corson alloy, andphosphor bronze - all used in connectors, semiconductor leadframes, and other parts. We are also engaged in precious
metal plating and stamping, as well as other processes, on a
global scale.

JX Nippon Mining & Metals Corporation
Senior Executive Officer, General Manager, Functional Materials
Division, Senior Executive Staff, Technology Group

Hyakuno Manabu

Employing world-class nonferrous metal manufacturing
technologies, we are a supplier of a wide variety of sputteringtargets including for semiconductor applications, compound
semiconductor materials, high-purity metals, and surface
treatment. These and many other materials and services,
provided on a global scale, find use cases in end products
such as advanced devices, leading-edge IT equipment,
medical instruments, and electric vehicles

JX Nippon Mining & Metals Corporation
Executive Officer, General Manager, Thin Film Materials Division,
Senior Executive Staff, Technology Group

Suwabe Takeshi

Key Strategies

Key Strategies
 xpand applications of the rolled copper foil and advanced copper alloy products, and improve profitability
E
Strengthen production capacity to expand business stablish a dynamic supply system to meet demandEStrengthen new products and new businessdevelopment capabilities

 romote use of digital technologies for greaterPefficiency in manufacturing processes

Review of Fiscal 2021

Outlook for Fiscal 2022

Review of Fiscal 2021

Outlook for Fiscal 2022

The spread of COVID-19 and the advances in work-style reforms have resulted in lifestyle changes such as the spread ofworking from home and online education. This has led to continued demand growth in the core markets for our products,
particularly in the fields of electronic devices such as smartphones, tablets, and PCs, and in communication infrastructure
including base stations and data centers. Our treated rolled
copper foil and copper alloy strip production facilities, which
launched operations in fiscal 2020, continued full production
throughout the year, and we successfully increased production
and sales to respond to the current expansion in demand. In
response to future growth in demand, we will achieve further
improvements in efficiency and productivity, and by bolsteringGroup manufacturing facilities, will increase manufacturing capacity at each of the Group’s sites thus expanding our production structures and strengthening our business foundations.

Although there is a sense of uncertainty about the future ofdemand for our advanced functional materials due to lockdowns
in China imposed to fight the spread of COVID-19, demand forthese materials continues to grow in cutting-edge fields such as
electronic devices and telecommunication infrastructure
applications.
In a society in which we need to achieve the SDGs, ESG,
and decarbonization, we expect to see expanded demand for
new applications such as in electric vehicles, recycling, andenergy-savings, requiring more sophisticated and diverse materials characteristics. As a company, we will continue with thedevelopment of markets and technologies that anticipatechanges in market needs, and strive to further bolster our production systems to address this growing demand.

Against the backdrop of growth in the overall size of the market
driven by an accelerated digital transformation, the increased
online-related demand resulted in growth in semiconductor-related markets. Amid this market expansion, fiscal 2021 saw
continued strong demand for our mainstay products, such as
sputtering targets for semiconductors, as customers increased
production to cope with global tightness in semiconductor
supply.
We had already increased our production capacity for sputtering targets for semiconductors in fiscal 2020, and have responded to growing demand by launching full-scale operation
at these facilities. Furthermore, in order to meet current andfuture market needs, we have decided to further accelerate theexpansion of our production system and reinforcement of ourbusiness foundation by launching construction of new plants
around the world. We are also enhancing production capacity
at our existing bases in a combined effort to significantly
strengthen the production capacity of this product.

While there is continued expansion of digital transformation, theeconomic environment is becoming increasingly uncertain due
to factors such as the global advance of inflation and Russia’s
invasion of Ukraine. However, needs for advanced materials
from this division are expected to expand further in the mediumto long-term, especially in semiconductor-related markets, due
to market growth expected in various areas, including the fullscale deployment of 5th generation (5G) mobile communication
systems, the increasing use of electrical equipment in automobiles, and the expansion of electronic device use in relation to
decarbonization.
To meet these growing demands, we will steadily implement
capital investments, including the construction of new plants, toincrease our production capacity and thereby justifying the trustof our customers. In addition to contributing to the achievementof the SDGs through our products, we also intend to meet society’s expectations by keeping our attention on new development trends in response to various market changes and solving
problems through internal and external collaboration.

TOPICSJX Philippines Increases Surface Treatment Capacity in Treated Rolled Copper Foil for FPCs
In January 2022, JX Nippon Mining & Metals Philippines, Inc. (JX Philippines) completed the installation of treated rolled copper foil surface treatment facilities, launching operations in order to meet growing demand for rolled copper foil for flexible
printed circuit boards (FPCs). In making this investment, we were able to achieve
remote facility launch and start mass production operations even though equipment
manufacturer engineers faced difficulties entering the Philippines due to immigration
restrictions amid the COVID-19 pandemic.
This investment not only increases the production capacity of the entire JX
Nippon Mining & Metals Group, but also contributes to strengthening our BCP by increasing production capacity at JX Philippines, helping to correct overconcentrationof production capacity at the Hitachi Works.
JX Nippon Mining & Metals has the largest market share worldwide for theseproducts, and we will continue to build a supply system in line with market trends inorder to continue to provide the materials needed by society.

Expanded Production Capacity for Sputtering Targets for
Semiconductors

Facilities for treated rolled copper foil surface treatment

31 JX Nippon Mining & Metals Corporation

TOPICS

Sputtering targets used for semiconductors are a mainstay product for the Thin Film Materials Business, mainly used in ultra-fine interconnects in leading-edge logic and memory
chips, and demand for these continues to grow along with the move to a data-driven society. Factors such as telecommuting have resulted in increased demand for communications
infrastructure and mobile terminals, and the semiconductor market is seeing accelerated
growth. Looking forward, this underlying trend is expected to continue with the developmentof 5G and digital transformations.
After enhancing capacity by approximately 80% versus fiscal 2020 levels, we will continue our efforts to meet growing demand by enhancing our production facilities for sputteringtargets for copper, copper alloys, titanium, and tantalum used in ultra-fine interconnects forsemiconductors.

Production equipment used for semiconductor-grade
sputtering targets such as electrolysis baths (Isohara
Works)

Sustainability Report 2022 32

Section 2 Value Creation Strategy
Strategies By Business

Tantalum andNiobium Business
Germany-based Group company TANIOBIS GmbH(hereinafter “TANIOBIS”) is one of the world’s leading
manufacturers of tantalum and niobium materials, with
manufacturing and sales locations all around the globe.
Primarily driven by TANIOBIS, we contribute to evolution of
the IoT/AI society through stable provision of such products
as metal powders used in capacitors and semiconductormaterials, high-purity oxides for SAW devices and opticallenses, chlorides and compounds, and superalloy additives.

Titanium Business
JX Nippon Mining & Metals Corporation
Senior Executive Officer, General Manager, Tantalum andNiobium Division
General Manager, Administration Dept., Tantalum and Niobium
Division
Senior Executive Engineer, Technology Group

Iida Kazuhiko

Key Strategies

Titanium, a light, strong metal resistant to corrosion, haswide-ranging uses, from aircraft to desalination plants, electric
power plants, and other applications. Group company Toho
Titanium Co., Ltd. is engaged in the smelting of titanium, andleverages related materials and technologies to manufacturesuch products as catalysts (for propylene polymerization) andchemicals (e.g. materials for electrodes and dielectrics inmultilayer ceramic capacitors).

Toho Titanium Co., Ltd.
President & Representative Director, Chief Executive Officer

Yamao Yasuji

Key Strategies

 addition to strengthening the supply chain in stable procurement, etc. for raw materials and improving productivityInand quality in our existing businesses, strengthen our customer-focused business modelGeneration of items and acceleration of commercialization in new businesses for the expansion of our businessfoundations

 trengthening revenue base by focusing investment inSgrowth fields

 apidly generating revenue from the Saudi Arabia jointRventure firm (ATTM)
Generation and promotion of new businesses

Review of Fiscal 2021

Outlook for Fiscal 2022

Review of Fiscal 2021

Outlook for Fiscal 2022

Product sales of high-purity tantalum powder for capacitors andhigh-purity tantalum powder for sputtering targets for semiconductors, a mainstay existing business, continued firm performance in fiscal 2021 due to the evolution of the IoT/AI society
and increasing stay-at-home demand.
In order to meet the steady growth in demand for its products, TANIOBIS decided to invest in the expansion of its high-purity tantalum powder production facilities at its production sitein Thailand, significantly increasing capacity. In addition, we
aimed to expand our global market share through a number ofactivities. These included efforts to realize a raw material procurement portfolio that is resilient to supply and demand fluctuations, price fluctuations, and risk, and actions promoting theCustomer First Project, in which sales, R&D, and manufacturing
work in unison to develop a customer-focused business modelin order to respond quickly and accurately to customers’ technological needs. In new business development, in order to expand our business foundations, we have been promoting initiatives targeting product development and the creation of synergies through close collaboration with Group companies andothers, and are steadily generating results toward the launch of
new products.

Given that demand is expected to continue growing for theachievement of IoT/AI society, we expect demand to remainstrong for our mainstay products of high-purity tantalum powder
for capacitors and sputtering targets for semiconductors. Under
these circumstances, we will work to attain even stronger competitive advantage by promoting customer sales activities that
integrate sales and technology to further expand its market
share and to optimize the product mix and reduce costs at eachsite, as well as by promoting the stable procurement of raw
materials.
Furthermore, we made tantalum and niobium smelter Tokyo
Denkai Co., Ltd. into a wholly owned subsidiary in April 2022,
strengthening the vertically integrated supply chain. We will also
promote activities to realize synergies in minor metals domains,
especially niobium, through collaboration with TANIOBIS andother Group companies.

In the Titanium Business, demand recovered for aircraft applications after a sharp drop amid the COVID-19 pandemic, andthere were also signs of recovery in demand for general industrial
applications. Alongside solid demand for semiconductor applications, sales increased substantially from the previous fiscal
year. However, with regard to profits, costs rose sharply due tosoaring costs of raw material copper concentrates, secondary
materials, and transportation costs, which continued to put
significant pressure on margins. Sales in the catalyst businessincreased year on year due to strong demand for catalysts for
propylene polymerization, a mainstay product. In the chemicals
business, sales of our mainstay product of multilayer ceramic
capacitors (MLCC), a major application for nickel powder, recovered from a COVID-19 pandemic-driven decline in demand,and sales were significantly higher than the previous year due
to increased 5G communications and automotive-related
demand.

In the Titanium Business, demand for high-purity titanium forgeneral industrial applications and semiconductor applications
is also expected to remain strong, as demand continues to increase on the back of the ongoing recovery in demand for aircraft applications, in addition to replacement demand in response to the impact of Russia’s invasion of Ukraine on the
supply chain. Since our titanium sponge facilities at sites inJapan are already utilizing nearly all of their production capacity,
we will cope with the increase in demand by raising the production volume of our affiliated company, a titanium sponge manufacturing joint venture in Saudi Arabia. In the catalyst business,
we expect demand for polypropylene to remain strong, andsales volume is expected to increase with the start of operations
at a new plant in November 2022. In the chemicals business,though the current demand for MLCC is in a temporary adjustment phase due to the semiconductor shortage and buildup of
distribution inventories, we expect this to gradually dissipate andthe business to return to a growth trajectory.

TOPICSTOPICS

Boosting Capacity with the New No. 4 Nickel Power Plant

Investing in Greater High-Purity Tantalum Powder Production
Capacity
In order to meet strong demand for high-purity tantalum powder, TANIOBIS decided toinvest in expanding production facilities in Thailand, significantly boosting capacity at its
plant there. TANIOBIS will also strengthen its quality control system by establishing a new
analysis building, as well as reinforce its development system to promptly respond to customer needs by installing new development and prototyping facilities. These facilities arescheduled to launch in sequence toward full operation by 2025. Going forward, we willcontinue to provide a stable supply of high-purity tantalum powder to meet market expectations.

33 JX Nippon Mining & Metals Corporation

Nickel powder is used as an internal electrode material in multilayer ceramic capacitors(MLCC). Demand for nickel powder is increasing along with the growing demand for
MLCC due to the increasing sophistication of electronic devices, advance of IoT, greateruse of electrical equipment in automobiles, and the practical application of 5G. At Toho
Titanium Co., Ltd., we built the new No. 4 nickel powder plant at the Wakamatsu Plant tostrengthen the product’s supply structure for use with low- and high-capacity MLCC, forwhich demand is expected to grow. Looking forward, we will target growth that beats themarket.

New nickel powder plant at Wakamatsu Plant

TANIOBIS’s Thailand plant

Sustainability Report 2022 34

Section 3

Materiality and ESG Management
Materiality Identification Process

Materialities (Priority Issues)and KPIs (Key Performance Indicators)

The following steps were taken to identify the Group’s materialities, based on global social issues and the goals set forth by
the SDGs, as well as international guidelines (GRI, ISO 26000,
etc.), initiatives in Japan and overseas (EITI, ICMM, etc.), and

The JX Nippon Mining & Metals Group has identified six materialities for priority action in order to realize our 2040 Long-Term Vision.
KPIs have been set for each materiality, and the ESG Committee, chaired by the president, administrates this system, measuring
and assessing levels of achievement for these KPIs.

Materialities

Environment

Contributing toEnvironmental
Conservation

P47

Initiatives

 ontribute to globalC
environmental
conservation by creating acarbon-free and recyclingoriented society.

Fiscal 2021 KPIs

Related SDGs

Total In-house CO2 Emissions: Promoting
initiatives to achieve net zero CO2 emissions
in fiscal 2050 and 50% reduction in fiscal
2030 (vs. fiscal 2018)P61

 dvance development ofA
new technologies andcontribute to an IoT/AI
society.

Increase Percentage of Recycled Raw
Materials/ Expand the Breadth of Recycled
Materials to be Treated

Develop advanced materials needed by the
IoT/AI society
Build a framework to support technologybased management
Reduce Serious Occupational Accidents:
Less than 0.7 accidents (four days or more oflost work time) per 1,000 workers in fiscal
2021

Create Attractive
Workplaces

P77

 reate a healthy, safe,Cand peaceful working
environment for all
employees.
Create an environment inwhich diverse employees
feel fulfilled and fully
express their talents.

SocialRespect Human
Rights

P89

Coexistence and
Co-Prosperity
With Local
Communities

P94

Governance

Increase Annual Leave Utilization Rate: 80%
or more in fiscal 2021
Implement initiatives to revitalize people andorganizations
Initiatives for health promotion: cancer
screenings for 70% of employees or more infiscal 2021
Maintain and improve hiring rate for disabled
persons: 2.3% or more in fiscal 2021

Strengthen
Governance

P99

35 JX Nippon Mining & Metals Corporation

Conduct businessactivities that respect thehuman rights of all
throughout the supply
chain, including local
community residents,
customers, employees,
and business partners.
 Foster relationships oftrust with local
communities throughcommunity-based social
contribution activities andcommunications in every
business location in
Japan and abroad.
 nsure sound, transparentEbusiness management via
thorough compliance andrisk management
activities.

STEP3

STEP4

Prioritize issues tobe addressed

Define materialities andestablish KPIs

ESG Promotion System
ESG Promotion System Diagram
President

ESG Committee
Chair: President
Secretariat: ESG Promotion
Department
Directors/Executive Officers/
Auditors

Chair: Officer in Charge of the ESG
Promotion Department

ESG Promotion Managers
Meeting

Secretariat: ESG Promotion
Department
General Managers of Corporate and Business Division, Business
Division General Managers
Representatives From Each Operating Site/Group Company(Domestic & Overseas)

Permeating ESG Management

Percentage of employees taking humanrights training (100% in fiscal 2021)

Conduct survey of human rights in supply
chainsContinue dialogue with local communities

Steady operation of Group-wide risk
management
Compliance training tailored to businesscharacteristics and social movements, etc.

Evaluate Groupbusiness activities

STEP2

Identify stakeholder
expectations andrequests

Though the Group has taken a variety of actions over the years
toward social contribution and environmental conservation, it
has become necessary to strengthen organizational response
to global ESG trends and take actions toward ESG managementfrom a Group-wide perspective. Therefore, in October 2020, weestablished the ESG Promotion Department to oversee ESG
initiatives, and created related committees to assist.
The ESG Committee serves as an advisory body to thepresident, and is responsible for basic policies and activity plans
related to ESG initiatives, as well as monitoring of these initiatives. The ESG Committee is chaired by the president of theCompany, with members from the Executive Council and withparticipation by outside directors as observers. This committee
meets twice a year in principle. In addition, in order to promote
and permeate ESG activities throughout the Group, we haveestablished the ESG Promotion Managers Meeting as a subordinate body to this committee, consisting of the ESG promotion
managers from each of the Company’s departments and eachGroup company. Important ESG-related matters are discussed
and reported to the Board of Directors and the Executive Council
as appropriate.
In fiscal 2021, ESG Committee meetings were held in Juneand November to discuss activity policies for each priority issue
and report on the status of activities.

Landfill Disposal Rate: Less than 1% in Fiscal
2021
ProvideAdvanced
Materials That
Support Livesand Lifestyles

STEP1

trends among industry peers. The identified materialities will be
periodically reviewed in accordance with future changes in social
conditions and needs, management strategies, and otherfactors.

In order to promote the penetration of ESG management, we
use the Group’s Intranet and internal newsletters for messaging
on ESG information, and we hold internal training and e-learning
programs to deepen understanding about the importance of
ESG and the Group’s activities. In April 2021, the ESG Handbook was distributed to all Group employees, and training was
initiated to further permeate ESG activities.
In addition, we distribute the Sustainability Report each year
and conduct questionnaires available via paper form and online
to survey employees about penetration of ESG and CSR mindsets and status of their involvement with practicing ESG and
CSR. In fiscal 2021, 5,347 people of 6,006 eligible employees
responded to the survey, a response rate of 89%.

Excerpt ofQuestionnaire Responses
Q: Do you understand our ESG
management initiatives?
Yes
UnsureNo
No answer

81.8%
14.9%
3.2%
0.1%

Q: D
 o you understand and agree with the
JX Nippon Mining & Metals Group Codeof Conduct?
Yes
92.7%
No
6.7%
No answer
0.6%
Q: D o you think materialities are wellunderstood in your organization andworkplace?
Yes
78.0%
No
21.1%
No answer
0.9%

ESG Handbook* Respondents have multiple options
for answering questions, withaffirmative answers categorized as“Yes” and negative answers as“No.”Sustainability Report 2022 36

Section 3 Materiality and ESG Management

Special Feature 2

The JX Nippon Mining& Metals Group’s
Climate Change
Strategy

Basic Approach and Vision
The Group has made environmental protection part of its corporate DNA since its founding, including when it rectified smoke
pollution from the Hitachi Mine by constructing a large chimney
stack, and in recent years has worked to continuously improve
its environmental performance, including with respect to climatechange. In 2020, we were among the first to participate in the
Keidanren’s Challenge Zero decarbonization project, and in Julyof the same year, we set the goal to reduce total in-house CO2

With the adoption of the Paris Agreement in 2015, efforts to achieve a decarbonized society are
gaining momentum on a global scale.
At the JX Nippon Mining & Metals Group, we recognize that addressing climate change risk is a
top priority management issue and are taking steps to that end.

Achieving Our Long-Term Goals
emissions by 50% in fiscal 2004 versus fiscal 2018, achieve net
zero by fiscal 2050. Furthermore, in May 2021, in order to become a leading ESG company in the nonferrous metals industry,
we decided to bring forward our interim target of 50% reduction
to fiscal 2030, in recognition that our reduction rates must becomparable on a global level. All of us at the Group are working
to achieve these targets.

In January 2021, as part of our efforts to achieve the aforementioned decarbonization vision, we launched the Carbon Free
Project, a more than 60-member team led by members of the
ESG Promotion Department, the Facilities Engineering Department, and the Procurement Department. Through this project,
we have accelerated our efforts to realize a decarbonized society

by formulating a roadmap toward net zero emissions in fiscal
2050 and studying specific reduction measures. In addition, we
have now examined our awareness of climate change risks andopportunities, as well as our medium- and long-term measuresand strategies to address them, and have decided to disclose
these in our Sustainability Report.

Recent Initiatives

The JX Nippon Mining & Metals Group’s Decarbonization Vision

Reduce total in-house CO2 emissions by 50% in fiscal
2030 versus fiscal 2018, achieve net zero by fiscal 2050

37 JX Nippon Mining & Metals Corporation

Fiscal 2020

•Set net-zero targets for fiscal
2050•Declared participation in the
Keidanren’s Challenge Zeroproject•Newly established the ESG
Promotion Department•Launched the Carbon Free
Project

Fiscal 2021

From Fiscal 2022

•Decided to accelerate theinterim CO2 reduction target(50% reduction in fiscal 2040) by
10 years•Strengthened communication
with stakeholders•Introduced an ESG investment
quota•Conducting disclosure based on
the TCFD recommendations•Endorsing the Ministry of Economy,
Trade and Industry’s GX League•Developing the Sustainable Copper
Vision•Developing a transition-linked loan
framework

Sustainability Report 2022 38

Section 3 Materiality and ESG Management
Special Feature 2 The JX Nippon Mining & Metals Group’s Climate Change Strategy

Disclosure based on the TCFD Recommendations
Strategy

In accordance with the TCFD’s recommendations, the Groupwill strive to proactively disclose information based on the disclosure framework of Governance, Risk Management, Metrics
and Targets, and Strategy. We will also take concrete measures
to address climate change.

1. Recognition of Climate Change-Related Risks and Opportunities
opportunities

opportunities

Governance
The ESG Committee, an advisory body to the president, is responsible for formulating basic policies regarding the Group’s
response to climate change, setting priority targets, and monitoring these targets. The ESG Committee is chaired by thepresident of the Company, with members from the ExecutiveIdentification of climate change-related risks andAnalysis of climate change-related risks andCouncil and with participation by outside directors as observers.
This committee meets twice a year in principle. Matters deliberated and decided are discussed at and reported to the Executive Council and the Board of Directors as appropriate, depending on the content.

In identifying the risks and opportunities that climate change
poses to our Group and its businesses, and in considering
strategies to address risks and capture opportunities, we referred to the World Energy Outlook (WEO) of the International
Energy Agency (IEA), the New Policies Scenario (NPS) of the
WEO 2018, the Sustainable Development Scenario (SDS) in lightof the Paris Agreement, as well as the Net Zero Emissions by
2050 Scenario (NZE Scenario) published in 2021. Furthermore,
our analysis adopts global warming scenarios (from RCP2.6 to
RCP8.5) from the Fifth Assessment Report (released in 2014) of
the United Nations Intergovernmental Panel on Climate Change(IPCC).

Risk Management
At the Group, the ESG Promotion Department works with eachdepartment to assess and identify risks and opportunities related to climate change, including scenario analysis, in accordancewith the framework of the TCFD recommendations. The department recently collected and analyzed information on a wide
range of risk factors associated with climate change impacts,
including regulations and business impacts, and began to identify our own risks and opportunities related to climate change

response, as well as medium- to long-term business strategy
measures.
The results of scenario analysis and the status of measure
implementation are shared with management through the ESG
Committee and other channels. Based on this, each department
takes action in these areas in cooperation with the ESG Promotion Department.

Identified Risks and Opportunities
Category

ImpactIntroduction andstrengthening of carbon
taxes, etc. in Japan andabroadConversion to electricity derived from renewable energy sources, conversion to low-carbon
footprint (low-CFP) and/or decarbonized fuels, and creating innovation and improvements in
manufacturing processes

Reputation

Loss of opportunity due
to delayed action
toward decarbonizationand environmental
impact reduction

Developing technology and making capital investments for decarbonization and reduction ofenvironmental impact
Disseminating and achieving the Sustainable Copper Vision through the formation of crossindustry partnerships (see page 26)

Acute

Damage to facilities andshutdowns due toextreme weather events

Enhancement of our business continuity plans (BCPs) and regular training
Establishing a Business Continuity Management (BCM)

Increased demand for
nonferrous metals
needed for adecarbonized society(Base Businesses)

Making businesses more resilient through portfolio review
Establishing a stable supply system through the evolution of Green Hybrid Smelting (see page 24)

Increased demand forhigh-end electronicmaterials (Focus
Businesses)

Making capital investments to meet demand
Engaging in open innovation through industry-academia collaboration and investment in startups

Systems for Climate Change Action

JX Nippon Mining & Metals Group

Physical Risks

Executive Council

ESG Committee*1
Chair: President
Secretariat:
ESG Promotion
Department
Directors/
Executive Officers/
Auditors

Products

Compliance Committee
Safety andEnvironment Committee
Opportunities

Carbon Free Committee*

2*1 Formulates basic policies on climate change response, sets priority issues, monitors each, etc.
*2 Discusses and determines Group-wide policy and specific measures to achieve net-zero CO2 emissions

Energy-Conservation
Promotion Subcommittee(Subcommittees areformed foreach theme as appropriate)

Measures
Reducing costs through the use of transition finance, energy-conservation activities, etc.

Policies andRegulations

ENEOS Holdings

Risk/Opportunity
Increased costs toachieve net-zero CO2emissions

Transition Risks

Board of Directors

Assuming a transition to a decarbonized society in the wake ofclimate change, the Group’s businesses will play a major role inshifting the power generation mix to renewable energy sources,
transforming power use in ways such as electrification, andachieving social implementation of the circular economy, andopportunities for increased product demand and evolution of
our offerings are expected.
On the other hand, there are risks such as increased costs
associated with the Group’s own efforts to become carbon
neutral on a global basis and lost opportunities due to delays inthis process. In addition, there are potentially increased physicalrisks of extreme weather events damaging production facilities
and logistics networks at operating sites in Japan and overseas,
resulting in shutdowns.

CirculareconomyRealizing circular
economyMaking efforts to evolve Green Hybrid Smelting by increasing the recycling raw materials ratio (seepage 24)
Evolving sustainable copper through the formation of cross-industry partnerships (see page 26)

Increased demand forDeveloping technologies, making capital investments, and engaging in industry-academiaand mandated recycling
government collaborations for closed-loop recycling of LiBsof automotive LiBs

Metrics and Targets
The Group has established its in-house CO2 emissions (Scope
1 and 2) as an indicator of climate change and aims to achieve
net-zero emissions by fiscal 2050. We have set an interim target

39 JX Nippon Mining & Metals Corporationof a 50% reduction by fiscal 2030 versus Scope 1 and 2 total
in-house emissions in fiscal 2018, based on backcasting fromour fiscal 2050 goal.

2. Scenario Analysis
With the transition to a decarbonized and resource-recycling
society, demand for nonferrous metals and advanced electronicmaterials related to our Group’s businesses is expected to grow,and we believe that the key point is how to realize capacity
expansion, technology development, and partnership building
in order to meet this demand.

However, the results of the scenario analysis revealed theimportance of smoothly transitioning the JX Nippon Mining &Metals Group to carbon neutrality and of evolving our BCPs tomitigate physical risks associated with natural disasters andminimize their impact when they occur.
Sustainability Report 2022 40

Section 3 Materiality and ESG Management
Special Feature 2 The JX Nippon Mining & Metals Group’s Climate Change Strategy(1) Transition Risks(1) Increased costs to achieve net-zero CO2 emissions
Electricity accounts for approximately 60% of our Group’s CO2 emissions (Scope 1 and 2), and we are switching to CO2-free electricity at
our major operating sites in Japan and overseas. We are also considering measures to generate renewable energy on our own and to address energy sources other than electricity used in our manufacturing
processes.
Although additional costs are incurred in the necessary initiatives
to achieve this, in the form of capital investment, R&D expenses, andthe price difference (premium) between CO2-free electricity and traditional electricity, we will steadily move toward decarbonization throughthe use of transition financing, a first in the nonferrous metals industry,and by reducing costs through energy-conservation activities.

(3) Opportunities

The Group has established a roadmap toward carbon neutrality
and is steadily implementing various initiatives to reduce CO2 emissions, so the cost burden is expected to be relatively insignificant.
* Fiscal 2018 Scope 1 and 2 emissions x 50% (2030 target) in t-CO2e x USD50/tCO2e x assumed exchange rate(3) Loss of opportunity due to delayed action toward
decarbonization and environmental impact reduction
If CO2 emission reductions do not proceed according to the roadmap
or if other environmental impact increases, there is a risk that theGroup may suffer harm to its social credibility. In addition, delays in
responding to climate change-related requests from customers could
result in reduced sales opportunities.
The Group is not only steadily promoting decarbonization initiatives and responding to individual customer requests, but it is also
working to develop technologies and make capital investments to
reduce its carbon footprint (CFP) and increase the percentage of recycled raw materials in accordance with the Sustainable Copper Vision (see page 23). We are also building partnerships with external
parties to achieve and disseminate the Sustainable Copper Vision.

(1) Increased demand for nonferrous metals needed fora decarbonized society (Base Businesses)

Needs for renewable energy and electrification of mobility
are expected to grow significantly toward the realization ofa decarbonized society, and copper and other nonferrous
metals will be increasingly used in these areas.
JX Nippon Mining & Metals Group earned operating
profit of approximately 113.1 billion yen in fiscal 2021 in the
Mineral Resources Business and Metals & Recycling Business, and this growing demand is expected to provide
opportunities for further sales and earnings growth for theGroup. The Group is working to strengthen its businessthrough portfolio reviews, and is taking various measures
to increase the input recycling raw materials ratio and reduce its CFP in Green Hybrid Smelting, which utilizes bothcopper ore and recycled raw materials, in order to establish
a stable supply system.

(2) Increased demand for high-end electronic materials(Focus Businesses)
Caserones Copper Mine (switched to CO2-free electricity in
January 2021)(2) Introduction and strengthening of carbon taxes, etc.
in Japan and abroad

Physical sorting
technology forrecycled materials

Carbon taxes are being considered for introduction in Japan andabroad. If these or other systems are introduced, there is a risk of cost
increases based on CO2 emissions. If a carbon tax is introduced, theannual cost increase is expected to be approximately 5 billion yen*.

(2) Physical Risks(1) Damage to facilities and shutdowns due to extreme
weather events
Extreme weather events, including intensifying typhoons, may cause
damage to the Group’s various facilities at operating sites in Japanand overseas. In addition, damage to our supplier and logistics networks increase the risk that we cannot sustain normal operation.
The Group has conducted analyses using hazard maps andother data at its major operating sites in Japan and confirmed thatthe risk of damage from extreme weather events is low. In addition,

41 JX Nippon Mining & Metals Corporation

we have established business continuity plans (BCPs), and conductperiodical training and reviews to promote the establishment of Business Continuity Management (BCM). We believe that these measures will keep the impact on our business to relatively minor levels
even if the risk of damage to facilities or shutdowns due to extreme
weather events materializes.

In addressing climate change, it is essential to significantly
improve energy use efficiency using technologies such as
IoT, AI, and 5G/6G. Many high-end electronic materials areused in these fields, and demand for these materials is
expected to continue to grow. The Group maintains productfamilies with high global market share in the area of electronic materials, including sputtering targets and treatedrolled copper foil for FPC, and in fiscal 2021 related businesses generated approximately 54.5 billion yen in operating profit.
Currently, we are constructing several new plants andincreasing capacity to meet strong demand (see page 62).
In addition, we are working to construct a new plant in Hitachinaka City, Ibaraki Prefecture (see page 71) and acquirea large site in the United States (see page 62) in anticipationof further growth in demand.
In addition to these capital investments, from a longer-term perspective, the Advanced Technology & Strategy
Department is taking the lead in open innovation throughindustry-academia collaboration and investment in startups (seepage 64 for specificexamples).
Illustration of thecompleted Hitachinaka
New Plant (tentative
name)(3) Realizing circular economy

Though demand for copper will continue to grow over thelong term as the world moves toward a decarbonized society, the supply of copper ore and recycled raw materials
from existing mines is limited.
The Sustainable Copper Vision we have establishedaims to build a stable supply system to support growing
copper demand through Green Hybrid Smelting that utilizes
both copper ore and recycled raw materials. As one of ourmeasures to evolve and gain wider use of sustainable coppers, we are working on technological development to increase the recycled raw materials ratio (input ratio of raw
materials or content ratio in products) to 50% or more by2040. To this end, it is essential to enhance our system forcollecting and processing recycled raw materials. Here, wewill not only strengthen the supply chain through capital
investment and M&A, but also form Green Enabling Partnerships with companies, local governments, universities,
and research institutions who work together to promotesustainable copper. Through these partnerships, we engage in product and scrap collection, raw materials reuse,and joint technology development (see page 26).

(4) Increased demand for and mandated recycling of
automotive LiBs

Electric vehicles (EVs) are expected to become widespreadas part of a decarbonized society. This will increase demand
for lithium, cobalt, and nickel used in lithium-ion batteries(LiBs) in EVs. There are also concerns about geopoliticalrisks and rising resource nationalism surrounding theseresources. Future large-scale disposal of LiBs is also expected, requiring their efficient recycling.
The Group is working to develop technologies, conduct
demonstration trials, and establish a resource recycling
system throughout the supply chain with the aim of realizing
closed-loop recycling to extract the aforementioned metals
from automotive LiBs reaching end of life (EoL) in as automotive battery materials (see page 48).

Bench scale equipment for LiB
recycling

Sustainability Report 2022 42

Section 3 Materiality and ESG Management
Special Feature 2 The JX Nippon Mining & Metals Group’s Climate Change Strategy

Initiatives from Fiscal 2021 to Today
Reduction of CO2 Emissions(Scope 1 and 2)
Toward the goal of reducing our total inhouse CO2 emissions in fiscal 2030 andfiscal 2050, we are working on four priority
activities: (1) introduction of CO2-free electricity, (2) generation of renewable energy,(3) promotion of zero energy loss activities,and (4) fuel switching and technology development toward decarbonization. As aresult, our in-house CO2 emissions in fiscal
2021 (total of Scope 1 and 2) were 892,000
t-CO2.

Priority Activity #1

JX Nippon Mining & Metals Group Scope 1 and 2 Emissions■■ Scope 1(thousand tons of t-CO2)
2,000

1,811

■■Scope 2

1,697

1,500

1,345
1,106

1,015

1,000

892

767

355
500

0

705

683

578

537

2018

2019

2020

2021

(FY)

Calculation of CO2 Emissions (Scope 3)
In addition to existing data for Scope 1 and 2 CO2 emissions, infiscal 2021 the Group began calculating indirect Scope 3 emissions in order to determine the overall CO2 emissions generated
by our operations and products. Through a Group-wide initiative
centered on the Carbon Free Project, we have calculated emissions results for fiscal 2020 and fiscal 2021, while obtaining
insights from outside experts. Going forward, we will study ways
to improve calculation methods and accuracy for each category,as well as to establish and implement emission reduction
targets.

ReferenceSpecial Feature 1: Sustainable Copper Vision > Scope 3
CO2 Emissions Reduction Page25

Scope 1, 2, and 3 Emissions (Fiscal 2021 results)
Scope 3 Emissions by Category(thousand tons of t-CO2)❿ 383

Scope 2355
Scope 1
537

❼5
❻1

⓬ 75

3,786

❹ 821
❸ 111
❷ 99

* CO2-free electricity: Electricity derived from virtually non-fossil-fuel powersources, etc. and that does not result in CO2 emissions, with an adjusted CO2
emission factor of 0.00 t- CO2/kWh. This may include nuclear power as well as
renewable energy such as hydro, wind, solar, etc.

Isohara Works

3,786❶ 2,161

Scope 1 and 2 emissions are calculated for operating sites of high quantitative
importance. Scope 3 emissions are calculated mainly for operating sites where
production activities are conducted, and the scope of calculation is different for eachcategory. Categories , , , and were not calculated because the Group has no
relevant activities in these areas.

Achieving Net Zero
The Group’s CO2 Emissions

Society’s Total CO2 Emissions

In our assumptions for fiscal 2050, emissions are expected toincrease due to business expansion over the course of time. In
response to this, we aim to achieve net-zero total in-houseemissions (Scope 1 and 2) in fiscal 2050 by combining energy
conservation, purchase and in-house generation of renewableenergy, electrification and fuel switching, process modification,and carbon capture and recycling*, centered on the four priority
activities we have already launched.

Through our recycling business, specifically the evolution ofGreen Hybrid Smelting, and supply of advanced technologicalmaterials and products, we contribute to the reduction of CO2
emissions in society as a whole. We not only strive to reduce
the Group’s CO2 emissions to net zero, but also to reduce theCO2 emissions of society as a whole.

43 JX Nippon Mining & Metals Corporation

Kurami Works⓭4

Scope 3 Categories❶ Purchased goods and services ❷ Capital goods ❸ Fuel and energy-related activities not included in Scope 1 or 2 ❹ Upstream
transportation and distribution ❺ Waste generated in operations ❻ Business travel ❼ Employee commuting ❽ Upstream leased
assets ❾ Downstream transportation and distribution ❿ Processing of sold products ⓫ Use of sold products ⓬ End-of-life
treatment of sold products ⓭ Downstream leased assets ⓮ Franchises ⓯ Investments* Includes the effects of recovery of CO2 and other forms of carbon (pyrolysis oil, etc.)
through combustion, etc. of recycled materials, enhanced physical sorting ofrecycled materials, increased ratio of biomass plastic in procured recycled materials,
and CO2 absorption through in-house efforts with forests, etc.

Since approximately 60% of the Group’s in-house CO2
emissions come from electricity, we began introducing CO2free electricity* in fiscal 2020. In January 2021, we beganwith the introduction of CO2-free electricity at the Caserones
Copper Mine, which accounted for approximately 20% of
the Group’s total electricity consumption in 2018. Then, in
fiscal 2022, the switch to CO2-free electricity was completed at all major operating sites in Japan, except for somesites with contractual restrictions. We are also graduallyswitching electricity at our operating sites outside Japan.

❺8

4,678

Scope 3

❾ 118

Introduction of CO2-Free Electricity

Priority Activity #2

Generation of Renewable Energy
Japan and other countries around the world where we
operate have set targets to increase the percentage of renewable energy, but these targets are not quantitatively
sufficient to achieve carbon neutrality for society as a whole.
In addition to purchasing CO2-free electricity, the Group isalso committed to generating its own renewable energy.
To date, we have introduced hydroelectric, binary, andsolar power generation facilities at our operating sites inJapan and overseas, and in February 2022, the first on-site
solar power generation facility using a PPA* began operation at the Kakegawa Works of JX Metals Precision Technology Co., Ltd. In June 2022, the Isohara Works also
started solar power generation via PPA, all of which is consumed in-house. Going forward, we will continue our efforts
to expand the generation of renewable energy throughvarious schemes.
* PPA: Power Purchase Agreement. A system in which a company or otherfacility owner leases its premise, roof, or other space, a power company
installs a solar power generation system, and the facility owner uses the power
generated and pays a fee

Solar power generation equipment installed on the roofof the Kakegawa Works

Solar power generation equipment installed on the roofof the Isohara Works

Renewable Energy Facilities and Total Electricity
Generation (Fiscal 2021) (Thousands of kWh)
Kakinosawa Power Plant, JX Nippon
Mining & Metals Corporation

Hydroelectric

25,636

Kakegawa Works of JX Metals Precision
Technology Co., Ltd.

Solar

979

Shimoda Hot Springs Co., Ltd.

Binary340

Nikko Metals Taiwan Co., Ltd.

Solar

235

Sustainability Report 2022 44

Section 3 Materiality and ESG Management
Special Feature 2 The JX Nippon Mining & Metals Group’s Climate Change Strategy

ColumnPriority Activity #3

Sustainable Finance Initiatives

Promotion of zero energy loss activities
As a Group that operates in an electricity-intensive industry,
we have been promoting energy conservation activities at
every stage of our business activities for some time. However, we believe it is now necessary to promote zero energy
loss activities from new angles in order to achieve net-zero
CO2 emissions. For example, we will take on the challengeof achieving zero energy loss by soliciting ideas from all
Group employees, such as updating facilities with a focus

on CO2 reduction that goes beyond cost reduction focus,
and fundamentally reviewing facility operation methods.
In order to promote such initiatives, we have establisheda 20 billion yen ESG investment quota in the current medium-term management plan. In the ESG investment quota,
we have introduced internal carbon pricing (ICP), albeit ona limited basis, to financially support initiatives that contribute to ESG, including decarbonization.

Priority Activity #4

Fuel switching and technology development toward decarbonization
In addition to electricity, our business processes use heavy
oil, coke as a reducing agent, and other energy sources,
and we are working to reduce CO2 emissions from thesesources. One candidate to achieve this is fuel switching. In
the industry, technologies are being developed for new fuelssuch as hydrogen and ammonia, and we will also consider
the use of these fuels.
As an example of technological development, in February 2021 we announced our participation in the second
phase of the Japan Technological Research Association of
Artificial Photosynthetic Chemical Process (ARPChem).
Artificial photosynthesis is a technology that uses solar
energy and catalysts to break down water into hydrogenand oxygen, and then reacts the hydrogen with carbon
dioxide to produce fuels and chemical raw materials. Global
development of this technology is being pioneered by
Japan.
As efforts to achieve carbon neutrality accelerate worldwide, interest is growing in this technology for generating
green hydrogen*1. ARPChem, the association we havejoined in this area, is a research consortium formed by the
Ministry of Economy, Trade and Industry for the purpose ofrealizing artificial photosynthesis technology. During the firstphase of activities conducted from 2012 to 2021, the association achieved a number of results such as the world’s
first successful proof of concept of artificial photosynthesis.
In the second phase of its activities, which will span the next
10 years, leading Japanese companies and research institutes*2 will bring together their specialized technologies todevelop catalysts, develop hydrogen separation membranes, and verify safety, with a view to implementing thesetechnologies in society.
By providing high purity metals such as tantalum andtitanium, as well as a variety of technologies we have culti-

45 JX Nippon Mining & Metals Corporationvated over time, we will also contribute to the developmentof catalysts that will help improve the conversion efficiency
of solar energy.
*1 Hydrogen produced by breaking down water. Hydrogen can be produced
without emission of a carbon dioxide by-product by using renewable energy
in the breakdown process*2 P articipating companies and research institutes in ARPChem
Companies: JX Nippon Mining & Metals Corporation, Kyocera Corporation,
Dai Nippon Printing Co., Ltd., Dexerials Corporation, Toray Industries, Inc.,
Toyota Motor Corporation, Nippon Steel Corporation, Furuya Metal Co., Ltd.,
Mitsui Chemicals, Inc., Mitsubishi Chemical Corporation, INPEX Corporation
Research Institutes: Gifu University, Kyoto University, National Institute ofAdvanced Industrial Science and Technology, Shinshu University, The
University of Tokyo, Tokyo University of Science, Tohoku University, Nagoya
University, Miyazaki University, Yamaguchi University

Illustration of Artificial Photosynthesis Technology

The Group utilizes sustainable finance as part of its efforts to realize a decarbonized, circular economies. Sustainablefinance is a method of guiding the promotion of solutions to environmental and social issues from a financial
perspective. Our Group pioneered this method in its industry in order to reduce financing costs and expand business
opportunities for continuous and systematic activities.

Expectations for Transition-Linked Loans
In recent years, as more emphasis has been placed onsustainable finance, a new financing method called transition-linked loans (TLL), which is different from conventional green bonds and sustainability-linked loans, hasbeen attracting attention.
Traditional approaches have been predicated on theassumption that decarbonization would be achieved inline with the level of the Paris Agreement GHG reduction
targets. However, concerns have arisen that GHG-intensive industries, where rapid decarbonization is challeng-ing, would be delayed in receiving support. However, TLL
allows for valuation of even a company’s long-term transition strategy itself, making it possible to raise funds fora wider range of projects.
Currently, expectations are growing for TLL to serve
as a mechanism to support the implementation of longterm transition strategies by industries with significant
GHG emissions, and rules are being developed in Japanand overseas to this end.

The Group Formulates the First Framework in the Nonferrous Metals Industry
Under TLL, sustainability performance targets (SPTs) are
set that are consistent with a company’s transition strategy, and incentives are provided such as linking interest
rate terms to the achievement of these SPTs. In June
2022, the JX Nippon Mining & Metals Group became thefirst in the Japanese nonferrous metals industry to develop a transition-linked loan framework (TLLF). This framework was developed with the support of Mizuho Bank,
Ltd. and has acquired a third-party assessment regarding
its applicability to various principles and guidelines, in-cluding the Basic Guidelines on Climate Transition Finance established by the Ministry of Economy, Trade andIndustry, the Ministry of the Environment, and the Financial Services Agency.
We have established two SPTs in our TLLF and linked
the achievement of these SPTs to the interest rate termsof the TLL, thereby establishing a mechanism for us tocommit to the implementation of our transition strategy.
Specific Targets for TLLF Initiatives
SPT 1: Maintain 50% reduction of CO2 emissions by fiscal

水WEB

OxygenArtificial catalysts Hydrogen
CO2

JX Nippon Mining & Metals Corporation
Transition-Linked Loan Framework

Organic matter

https://www.jx-nmm.com/english/newsrelease/Olefin, etc.

fy2022/20220629_02.html

2030 (versus fiscal 2018)
SPT 2: Increase the percentage of recycled raw materials to
25% by fiscal 2030

(Basic chemicals)High Purity

Surface
Control

Analysis

We are engaged in the research and development of
catalyst materials that are essential for the
production of hydrogen. Catalysts for artificial
photosynthesis function in the same mechanism as
semiconductors and can therefore be applied to ourvarious technologies.

*Prepared by JX Nippon
Mining & Metals based on
information on the website of
the Agency for Natural
Resources and Energy,
Ministry of Economy, Tradeand Industry

Test plant for artificial photosynthesis technology (courtesy of
ARPChem)Financing Under the TLLF
Based on the framework we have formulated, the Company entered into a TLL agreement with Joyo Bank, Ltd.
in June 2022. This is the first TLL project in the nonferrous
industry in Japan, and will be used to cover the environmental costs of the New Hitachi-kita Factory (tentativename), a new production base for sputtering targets forsemiconductors currently under construction in HitachiCity, Ibaraki Prefecture.

New Hitachi-kita Factory (tentative name)

Sustainability Report 2022 46

Section 3 Materiality and ESG Management

Materiality 1

Contributing to Environmental Conservation

Initiatives for a Decarbonized Society
The JX Nippon Mining & Metals Group views climate change as an urgent issue that must be resolved on a global scale, and inorder to contribute to the resolution of this issue, we have set the ultimate goal of achieving net zero CO2 emissions and are further
accelerating our efforts to achieve this goal.
ReferenceSpecial Feature 2: The JX Nippon Mining & Metals Group’s Climate Change Strategy

P37

Forming a Recycling-Oriented Society
At the Group, we recognize that the mission of players involved in the materials industry is to minimize resource final disposal
through an ongoing cycle while maintaining the maximum value of these resources. Based on this concept, we aim to achieve acircular economy.
Reference

Environment

The Group maintains a keen awareness of the impact our business activities have on the environment, and our basic policy is tocontribute to conservation of the environmental on a global scale by promoting the development of technologies that enhance
the productivity of resources and materials. Furthermore, as we execute business, we seek to reduce our environmental impact atevery stage of the supply chain.
Forming a RecyclingOriented Society

Initiatives for a
Decarbonized Society

2Conservation of
Biodiversity

Other Initiatives forEnvironmental Conservation

P48

KPIs and Progress

P51

P53

Assessment:

Achieved / Steady Progress

KPI

Fiscal 2021 Results/Progress

Total in-house CO2Emissions: Promoting
initiatives to achieve net
zero CO2 emissions in fiscal
2050 and 50% reduction in
fiscal 2030 (vs. fiscal 2018)

We continued our activities through the Carbon Free Project, which was launchedto achieve these targets, and promoted a variety of initiatives for decarbonization,
including the introduction of CO2-free electricity at each of our sites and thecreation of roadmaps per division toward net zero emissions.

Increase Percentage ofRecycled Raw Materials:
Expand the Breadth of
Recycled Materials to be
TreatedWe have been working to increase the percentage of recycled raw materials (input
ratio of raw materials or content ratio in products) to 50% or more by 2040 usedin copper smelting by expanding our facilities for greater treatment of recycledmaterials and improving logistics efficiency.

Landfill Disposal Rate: Less
than 1% in Fiscal 2021

We have set a goal of keeping our landfill disposal rate at no more than 1.0% in
order to cut down on waste with the aim of minimizing our impact on theenvironment. Our landfill disposal rate in fiscal 2021 was 0.68%.

47 JX Nippon Mining & Metals Corporation

Environmental
Management

2

2

P37

P23

Closed-Loop Recycling of Automotive
Lithium-Ion Batteries (LiB)

Contributing to Environmental Conservation

Materiality 1

Special Feature 1: Sustainable Copper Vision

P54

Not Achieved

Assessment

Minor metals such as nickel, cobalt, and lithium used in LiB are
not produced in Japan, but are rather concentrated in a specific
set of countries and regions. Reducing the environmental impact
and supply chain risk associated with the use and securing ofthese mineral resources has become a serious social issue.
Since 2020, we have been working to develop technologies
for achieving closed-loop recycling. In this process, minor metals
are recovered from automotive LiBs reaching end of life (EoL
LiBs) and used again as raw materials for automotive batteries,
and we have installed continuous processing small-scale testing
equipment (bench-scale equipment) for recycling automotive
LiB at Hitachi Works. In the first half of fiscal 2021, JX Metals
Circular Solutions Co., Ltd. began demonstration trials forhigh-purity nickel sulfate recovery, beginning similar tests forhigh-purity cobalt sulfate in the first half of fiscal 2022. Furthermore, we are targeting the launch of demonstration trials for therecovery of high-purity lithium carbonate in fiscal 2023.
Going forward, we aim to increase the recovery rate of metals
contained in EoL LiBs waste automotive LiB and establish a processcapable of complying with EU battery regulation requirements tomeet the global need for a circular
Bench-scale equipment at Hitachi
economy.
Works

Establishing New LiB Recycling Companies
in Japan and Overseas
In August 2021, we established a new company, JX Metals
Circular Solutions Europe GmbH (JXCSE), in Frankfurt, Germany. This company’s aim is to promote our EoL LiBs recycling andbattery materials businesses. In Europe, a draft battery regulation was released in December 2020, part of growing discussions on battery recycling in conjunction with the widespread
adoption of EVs. We have been working on the commercialization of LiB recycling through TANIOBIS, our Germany-basedGroup company, with a view to collaborating with European
automotive manufacturers and others. Going forward, JXCSE
will augment our efforts, promoting these as comprehensive
action including new material
development.
In Japan, JX Metals Circular Solutions Co., Ltd.
started operation in October
2021 to promote the development of technologies for
JX Metals Circular Solutions Co., Ltd.
closed-loop recycling.

Strengthening our Organizational Structure
for LiB Recycling
In August 2021, we established the Battery Material & Recycling
Promotion Office, a result of integrating the LiB Recycling Project
Office within the Advanced Technology & Strategy Department,
Technology Group with the Thin Film Materials Division’s general
operations related to the development of all solid-state battery
materials. In addition, we transferred the all solid-state battery
materials development work being conducted at the Isohara
Works Product Development Center to the Technology Development Center, establishing the Battery Materials Group there.
We have been developing recycling technologies to realize
LiB closed-loop recycling, and at the same time, we have beendeveloping technologies for materials to be used in all solid-statebatteries, expected to dominate the next generation of battery
technology. With this organizational change, we have established a system to promote LiB recycling and material development in a unified manner. We will accelerate commercialization
through this consolidation of internal battery-related resources,
which also offers synergies such as improving the quality ofrecycled materials by leveraging our materials development
technology and developing technologies with a view to the entire
supply chain. In the future, the Battery Material and Recycling
Promotion Office will play a central role in the Group’s efforts torealize automotive LiB recycling in cooperation with domestic
and overseas sites.

Sustainability Report 2022 48

Materiality 1

Section 3 Materiality and ESG Management
Environment

Contributing to Environmental Conservation

Participating in a Consortium to Develop
LiB Recycling Technology in Germany

Strengthening the Functions of our
Recycling Center in Taiwan

Launching Operations of a Large-Scale
Pre-Treatment Calcining Furnace (Kiln)

Group company TANIOBIS participates in HVBatCycle, a consortium for joint research and development on the recovery andreuse of LiB materials. In Germany, the Volkswagen Group has
been leading a joint research and development effort with industry and academic institutions such as RWTH Aachen University
and the Fraunhofer Institution for the closed-loop recycling ofcathode materials, electrolytes, and graphite, which are thecomponents that make up batteries. The consortium has now
been formed as an extension of these efforts with the supportof the German Federal Ministry for Economic Affairs and Climate
Action.
In this consortium, we will newly establish a hydrometallurgy
process R&D facility in the town of Goslar, the home of TANIOBIS’s main site, based on the technologies developed by theGroup. Here, we will work with project partners to optimize thisprocess to recover high-quality battery materials in high yieldusing battery powder provided by Volkswagen. In Europe, whereindustry-government-academia efforts to expand the use of EVs
are booming, we will take further steps toward the social implementation of automotive LiB recycling.

Group company Nikko Metals Taiwan Co., Ltd.’s Changpin
Recycle Center has increased its collection and processing
capacity by 2.4 times, from 500 to 1,200 tons per month, byadding a new building and additional recycling equipment inorder to increase its capacity for handling recycled raw materials.
This new equipment began operation in April 2021.
Taiwan has clusters of cutting-edge electronics industries
and a well-developed collection system for waste electrical andelectronic equipment. It is expected to continue to generateincreasing amounts of recycled raw materials going forward. In
Taiwan, we will utilize the rapid and accurate analysis and evaluation technologies we have cultivated so far to increase thecollection of raw materials.

Recycled raw materials contain a large amount of combustible
materials such as resin substrates and housing plastic. If thesematerials are treated as-is in the copper smelting process, theviolent combustion causes an increase in exhaust gas emissions, destabilizing operations. Therefore, more advanced
pre-treatment technologies and facilities are needed to efficiently
smelt a greater number of recycled raw materials.
At the Saganoseki Smelter & Refinery, we added a large
pre-treatment calcining furnace (kiln), which launched operations in April 2022. This has made it possible to efficiently remove resins and other mataerials adhering to the recycled raw
materials, and increase pre-treatment capacity by 50% overprevious levels to just under 10,000 tons per month.

Harnessing Green Loans to Build an
Automotive LiB Recycling Facility in Germany
In April 2022, JXCSE entered into an agreement with Mizuho
Bank, Ltd. for the formation of a green loan. A green loan is aloan made in accordance with the Green Loan Principles, which
are international guidelines for financing, to finance projects that
contribute to solving and mitigating environmental problems.
This green loan is to be used to invest in R&D facilities for therecycling of spent automotive LiB in Germany.

Selected as a NEDO Green Innovation
Project
The Green Innovation Fund operated by the New Energy andIndustrial Technology Development Organization (NEDO) wasestablished to create a virtuous circle between the economy andthe environment as part of the Green Growth Strategy for carbon
neutrality in 2050. The fund aims to provide long-term, continuous support for initiatives by corporations and other organizations, from research and development and demonstration tosocial implementation.
The JX Nippon Mining & Metals Group proposed the Recycling of Automotive LiBs through Closed-Loop Recycling project, which was selected as a fund project in May 2022. We willtake this opportunity to more actively promote developing technologies toward effective use of precious metal resources.

49 JX Nippon Mining & Metals Corporation

Initiatives for Zero Emissions
The Group’s Smelting, Refining, and Recycling Business aims
to recycle valuable metals such as copper and precious metals
contained in scrap produced by factories and in used electricaland electronic equipment generated in daily life, etc. Here, environment-related Group companies work in unison to realize a
recycling-oriented society.
On industrial waste disposal, secondary waste such as incinerator ash and residue is often generated, much of which islandfilled at final disposal sites. In the Group’s Recycling andEnvironmental Services Business, we have established a recycling system under the slogan “never discard, never bury” andpursue industrial waste treatment and non-ferrous metal recycling with zero emissions so that this secondary waste is also
recycled.

Before and after incineration of recycled raw materials
New crusher and automatic sampling equipment

Recycled raw materials

Launching Operations at the Oita Recycling
Logistics Center
At the Saganoseki Smelter & Refinery of JX Metals Smelting Co.,
Ltd., we newly established the Oita Recycling Logistics Centerin the Oita Port Ozai Nishi-ku area of Oita City, Oita Prefecture.
This center launched operations in October 2021. The Saganoseki Smelter & Refinery, which aims to strengthen its businessby pursuing an optimal mix of copper concentrates and recycled
raw materials, has positioned the center as a collection site forrecycled raw materials. Harnessing this center as a central driverin recycling mineral resources, including copper and minor metals, we are working to enhance functionality by efficiently analyzing raw materials, installing a storage building and a raw
material compressor to improve transportation efficiency, andtaking other measures.

Printed circuitboardsPlating scrap

Cellphones

Industrial waste

LiB, etc.

Acid/Alkaline waste

Shredder dust

Sludge, etc.

Four environmental service companies
Pre-treating recycled materials and detoxifying industrial waste

JX Nippon Mikkaichi Recycle Co., Ltd.

JX Nippon Tomakomai
Chemical Co., Ltd.

JX Nippon
Environmental Services Co., Ltd.

JX Nippon Takasho Co., Ltd.
(Wholly-owned subsidiary of
JX Metals Trading Co., Ltd.)Raw materials containing valuable metals after pre-treatment

Saganoseki Smelter & Refinery, JX Metals Smelting Co., Ltd.

Copper concentrate

Opening ceremony held in September 2021

Waste oil

Recycled raw materials

HMC Department of Hitachi Works, JX Metal Smelting Co., Ltd.
Intermediate products from
Saganoseki

Recycled raw materials

Copper smelting/precious metal refining process
Dry/wet smelting

Lead smelting/precious metal refining process
Dry/wet smelting

Cu / Au / Se

Ag/PGM/Te/Pb/Bi/ Sb, etc.

Sustainability Report 2022 50

Section 3 Materiality and ESG Management
Environment

Materiality 1

Contributing to Environmental Conservation

Formulating Mine Closure Plans

Conservation of Biodiversity
The Group recognizes that biodiversity conservation is an important management issue. Mining operations in particular are strongly
linked to local ecosystems and require due care, which is why we are implementing a variety of initiatives in Japan and overseas.

The Group believes that it is important to minimize the impact
on the environment and society in the surrounding areas when
closing a mine. Overseas, we have formulated a mine closure
plan for the Caserones Copper Mine through dialogue with therelevant authorities, local communities, and other stakeholders,and have made financial and other preparations to implement
the necessary measures, thereby ensuring appropriate responses in the event of its closure.

ColumnActivities at the Caserones Copper Mine

Forest Maintenance Activities in JapanAt the Caserones Copper Mine, 48,200 seedlings from 15 nativeflora species are being planted in an area spanning 1.43 square
kilometers to protect biodiversity. The areas where these arebeing planted are Ramadilla on the mine site and around theoff-site areas of Maitencillo and Amolanas. In addition to reforestation, we are monitoring the development of plants native tothe area and conducting research on the impact of climate andother factors on the propagation and distribution of plants native
to the high altitudes around the Caserones Copper Mine. In
2021, 6,000 new seedlings were planted, with total of 24,500
planted in an area of 0.98 square kilometers so far.

The Group has been promoting reforestation activities throughout Japan, especially at the sites of closed mines. Employees
and their families participate in these activities to communicate
the importance of protecting the local environment throughcontact with nature.

Closed Mine Initiatives

Activities in Japan* Currently, the Kasuga Mine (Kagoshima Prefecture) is the Group’s only operational mine in Japan

Management Operations at Closed Mines
Yoichi County, Hokkaido(site of former Oe Mine)

Hakodate City, Hokkaido(site of former Kameda Mine)

Sapporo City,
Hokkaido(site of former
Toyah Mine)

Nanyo City, Yamagata(near site of former Yoshino Mine)

Koriyama City,
Fukushima(site of former
Takatama Mine)

Hitachi City, Ibaraki(near the Hitachi Works)

Plants native to the Caserones Copper
Mine area

JX Nippon Mining Ecomanagement, Inc. oversees theclosed mines managed by the Company. The work mainly consists of detoxifying acid mine drainage (AMD) andmaintaining and preserving the tailings dams and galleriesof the mining sites.
AMD occurs when rainwater or other water comes
into contact with materials such as copper concentrates
remaining after the mine is closed or the rubble and slagof tailings dams. Since AMD contains metals and is highly
acidic, treatment facilities have to operate 365 days ayear.
As for tailings dams, construction is underway to handle the recent flooding in areas of frequent rainfall, and toadapt to large earthquakes. Through the management ofthese closed mines, we are striving to preserve the natural environment.

(Upper left) Installation of a newcatchment basin at Mitate Mine
(Upper right) Site improvements at thestone tailings dams at Toyoha Mine
(Lower right) Autumn leaves aroundToyoha Mine

Construction Work at Tailings Dams Against Earthquakes and Flooding

TOPICS
Initiatives at Hitachi Works
The city of Hitachi is the Group’s place of origin. Approximately 500
Oshima cherries and wild cherries planted in the early days by Hitachi
Mine are growing on Mt. Kurakake, next to our Hitachi Works. Since
2008, the Mt. Kurakake Cherry Centennial Committee of Hitachi City
has sponsored activities to protect these trees and create a place ofrest and relaxation for the local community, as well as a place for environmental education of the children of the future. In fiscal 2021, weonce again were forced to cancel forest maintenance activities to help
prevent the spread of COVID-19. Activities are scheduled to resume
in fiscal 2022, to be implemented in November 2022.

From its founding in 1905, the JX Nippon Mining & Metals Group has been engaged in mining operations across Japan.
By ensuring a steady supply of nonferrous metals and other resources, we contributed to Japan’s economic growth. In
Japan, however, operations have ceased in nearly all mines as their mineral resources have dried up. Still, in closed mines
we provide acid mine drainage (AMD) treatment and work to maintain and preserve the natural environment.

Forest maintenance activities

The Great East Japan Earthquake that occurred in March2011 damaged the tailings dams at both the Oya Mineand Takatama Mine. The seismic resistance of both sites
met the construction standards effective at the time ofthe earthquake, and should have been able to withstanda Level 1 earthquake, which is the earthquake level anticipated by the government. However, the earthquake
damaged these sites because its extent far exceeded theearthquake resistance standards anticipated to be needed by the government. After reflecting on this incident,
we organized a committee of experts (scholars and specialists) to review the seismic standards of the tailings
dams. As a result, we voluntarily established a standard
that our sites have seismic resistance capable of withstanding a Level 2 earthquake.* At the same time, wehave established strict voluntary standards for stability
against flooding that has occurred in several areas overthe past few years, caused by climate change.
We used these voluntary standards for seismic resistance and heavy rainfall in risk assessments conducted
for all 51 tailings dams in Japan. For those tailings dams
determined to require countermeasures, we establishedpriorities and have been carrying out construction work
against potential damage since fiscal 2013, with plans tocomplete all countermeasure construction by fiscal 2024.
This construction work includes ground improvement (toensure seismic stability) and channel augmentation (toensure drainage capacity during floods).

Countermeasure construction: Installationof check dams (driftwood stopper)

Countermeasure construction:
Upgrading drainage channels*T he maximum intensity of seismic vibrations that can be expected to occur in the target region at present and in the future. Subsequently, the government’s
earthquake resistance standards were changed to levels similar to our voluntary standards.

51 JX Nippon Mining & Metals Corporation

Sustainability Report 2022 52

Materiality 1

Section 3 Materiality and ESG Management
Environment

Contributing to Environmental Conservation

Other Initiatives for Environmental Conservation
Conservation of Water Resources
In the Group’s business activities, we use large quantities ofwater in our copper mining operations, as well as for coolingwater (mainly seawater) used in smelters. We recognize thatwater resources are not only essential for our Group’s businessactivities, but also important resources for the local communities
where our production sites are located. With this in mind, weare doing our best to make sure that these sites make effective
use of water resources by properly monitoring water consumption and exploring methods for reduced use or reuse.
One example comes from the Caserones Copper Mine inChile, a mine where we have operations. Here, we have set limits
on water use that are stricter than those set by the local authorities, and we monitor the balance of water intake and discharge.
In areas downstream from the mine, we desalinate seawater,
providing water supplies used by local residents for agriculture
and general home use.

Water Risk Assessments at In-house Plants
The Group assesses and confirms how water risks, such as
water shortages, water pollution, and flooding associated withclimate change, affect each of the Group’s production sites andits supply chain. We use Aqueduct, a water risk assessment tool
provided by the World Resources Institute (WRI), to identify whatwater risks are present. In fiscal 2021, we assessed six of ourmain production sites in Japan. None of the sites were found tohave high water risk in the assessment.

Proper Management of Chemical
Substances
The Group has voluntarily established chemical substance management standards, and we strive to mitigate the harmfulnessof these substances by controlling their use. In addition, theGreen Procurement Guidelines clearly identify substances thatmust not be included in manufacturing processes, materials, or
equipment, and we ensure our suppliers are aware of these.
Furthermore, we strive to provide safety information to our customers and all other product stakeholders.

Detoxification Treatment of Equipment
Containing PCBs*
The Group contributes to environmental conservation by detoxifying hazardous waste through our treatment businesses for
low-concentration PCBs and asbestos. In 2014, JX Nippon
Tomakomai Chemical Co., Ltd. became the first firm in Hokkaido
to receive certification from the Minister of the Environment asa detoxification facility for treating low-concentration PCB waste.
In addition, JX Nippon Environmental Services Co., Ltd. is engaged in the melting and detoxification of asbestos. The company treated approximately 3,409 tons of waste asbestos infiscal 2021.
We are also proceeding with treatment of Group-owned
equipment with high-concentration PCBs at the Japan Environmental Storage & Safety Corporation (JESCO). We have completed treatment of this equipment at sites outside the Tokyo
metropolitan area, and plan to complete treatment at sites in theTokyo metropolitan area by the disposal deadline. In addition,
we are planning disposal of equipment with low-concentration
PCBs through licensed low-concentration PCB treatment contractors such as JX Nippon Tomakomai Chemical Co., Ltd.; thisdisposal is scheduled to be completed by fiscal 2024, two years
before the disposal deadline.
* Polychlorinated biphenyls (PCBs): Substances that were often found in insulating oils
for transformers and capacitors, as well as in pressure-sensitive photocopiers, due totheir excellent electrical insulating properties. However, their toxicity has now led to aban on their new manufacture and import.

Environmental Management
JX Nippon Mining & Metals Group Basic Environmental Policy
As a comprehensive manufacturer of nonferrous metals and advanced materials, the JX Nippon Mining & Metals Group is rising to thechallenge of innovation in the productivity of resources and materials. Committed to compliance with environmental regulations, we carryout the following initiatives in order to proactively strive for environmental conservation on a global scale, including measures against global
warming, and contribute to building a sustainable society.
1. We will contribute to achieving a decarbonized society by promoting technological innovation and energy transition and aiming for zero
greenhouse gas emissions.
2. We will supply environmentally-friendly advanced materials to support the growth and advancement of society.
3. We will promote resource recycling and aim for zero emissions in all our business activities.
4. We will thoroughly raise each employee’s awareness of environmental conservation through environmental education, leading to businessactivities with less environmental impact.
5. We will share information on environmental conservation activities with stakeholders and seek to operate in harmony with society.

Compliance with Environmental Laws andRegulations

Environmental & Safety Auditing

Through steady operation of environmental management systems, the Group works to ensure compliance with environmental
laws and regulations. The Environment & Safety Department at
the Head Office monitors and supervises the state of complianceand reports to the ESG Committee through the Safety andEnvironment Committee. At their annual meeting, environmental
management supervisors work to strengthen our compliancesystem by providing information on legal and regulatory trend
sand reporting on the status of compliance at each operatingsite. We additionally reinforce employees’ knowledge of laws
and regulations by holding rank-specific education and training
regularly at the Head Office and operating sites.
In fiscal 2021, there were no adverse dispositions from regulatory authorities (including license revocation, orders to cease
operations, orders to cease use of facilities, orders for improvement, fines, etc.) for violations of environmental laws andregulations.

Individual operating sites implement internal environmental audits at least once a year. In addition, they periodically undergo
environmental and safety audits by the Environment & Safety
Department of the Head Office. Audits were conducted at 20
sites in fiscal 2021.
Activities in the areas of health and safety and environmental
conservation are planned, promoted, and reviewed by the Safety and Environment Committee, an organization under the ESG
Committee. The Safety and Environment Committee meetsonce every six months.

Establishing an Environmental Management
SystemThe JX Nippon Mining & Metals Group has established environmental management systems in line with ISO 14001 standards
for ensuring achievement of the Action Plan for Environmental
Protection, which was drawn up to reflect the Basic Environmental Policy. A multilevel organizational structure has beencreated, including various committees and subcommittees, inwhich everyone, from senior management headed by the president to employees at operating sites and affiliated companies,
works together to promote environmental conservation andmitigate environmental risk. No environmental accidents occurred in the Group in fiscal 2021.

Operating Sites That
Have Obtained ISO 14001
Certification
Rotary kiln incinerator at JX Nippon Tomakomai Chemical Co., Ltd.

53 JX Nippon Mining & Metals Corporation(as of March 31, 2022)

41 Operating Sites

An environmental & safety audit at Isohara Works

Promoting CSR Purchasing
The Group has set a Green Purchasing Policy, aimed at reducing
environmental and other social impacts when procuring materials and equipment. Based on this policy, we have drawn up
Green Purchasing Guidelines setting out specific requirements
for choosing suppliers. This Guideline contains “mandatory
conditions (minimum requirements)” for mandatory compliance,and “preferred conditions (preferences)” that we ask our business partners to consider. These conditions are applied to all of
our suppliers. Supplier compliance with these guidelines ischecked in our CSR Procurement Questionnaire survey.

(Japan: 29, overseas: 12)

Sustainability Report 2022 54

Section 3 Materiality and ESG Management

Special Feature 3

Further Accelerating our
Digital Transformation(DX) Strategy

Since 2017, the JX Nippon Mining & Metals Group has been promoting the IoT 5+1 Year Plan
with the aim of establishing a business foundation to realize our ideal state of being atechnology-based company, as envisioned in our 2040 Long-Term Vision.
We are working to utilize IoT and AI to improve productivity and quality, evolve preventive
maintenance, improve safety, and reduce environmental impact in all areas of our business.
Reference

The JX Nippon Mining & Metals Group Long-Term Vision 2040

Page 11

Envisioning an ideal state and driving process innovation in all areas of our business

Aiming to create a digital twin value chain unique to the JX Nippon Mining & Metals Group

Nonferrous metal materials, comprising core products for theGroup, require constant creation and innovation in response tochanges in society, industry, and technology. The Group must
keep up with the pace of these changes and continue to innovate its own processes. To do so, it is essential to introduce andimplement cutting-edge digital technology, and we must execute our plans by closely sharing awareness of the issues athand with people in the field, who are the primary drivers ofinnovation.
In the IoT 5+1 Year Plan, the Technology Group has been
established as the controlling organization, and the IoT Subcommittee established within each division leads measures, with the
IT Department’s Digital Innovation team serving as the promotion

The measures promoted under the IoT 5+1 Year Plan have resulted in approximately 120 demonstration tests. Several ofthese have been converted to practical application and we are
currently establishing databases in related departments. In fiscal
2021, we began formulating the IoT/AI Six-Year Plan (2023 2028) to further deepen and accelerate DX.
In this plan, new issues have been identified in light of changes in the business environment, and its new measures include

secretariat and providing technical support. Each measure wasto automate processes (reductions in costs, lead-times, etc.) by
introducing IoT and AI technologies, and to digitize analog information (paper documents, forms, etc.) regarding processes,
and to stock this information across all businesses. In doing so,
we have also been working on new technologies in the pre-practical stage in verification tests. In addition, we are also engaged
in verification tests of highly promising elemental technologies,
such as technology for optimization calculations using quantum
annealing computers, and topographical change and landslide
monitoring using satellite-based SAR survey technology.

attempting to utilize collected data as feedback in manufacturing
processes, solving issues in sales and logistics domains, andintroducing IoT technology for the purpose of decarbonization.
In addition, we aim to promote DX throughout the supply chain
to create value for our customers and more proactively utilize
digital technology to address the issues of securing and training
human resources and addressing work styles.

JX Nippon Mining & Metals’ Six-Year Plan and Technology Initiatives to Support DX
Cloud security

Standardizing and digitizing manuals

Technical reporting sessions/
small study groups

Internet

Standardizing quality and sharing quality information

Information sharing

DX Strategy and Promotion System

Conducting advanced analysis and simulation
utilization, digital twin

Officer in Charge: Director, Member of the Board, and Deputy Chief Executive Officer/General Manager, Technology Group

Researching and utilizing advanced technologies
Analyzing patent information(IP landscape)Strategic IP activities

Leader: Executive Officer in Charge of the Technology Group/General Manager, IT Department

1

Studying/applying ERP* ,simplifying development

JX Nippon Mining & Metals Head Office
Corporate(HR, Administration,
Legal, Accounting)Labor savings/evolving systems
Work style reforms,
human resource management
Business process optimization/
evolution

Automating/optimizing planning(production planning, etc.)

Total system optimization

Support: IT Department, Digital Innovation teamMulti-variable model predictive control
and equipment condition monitoring

Advanced control/predictive maintenanceManaging and operating
business process data

Plants/smelters

Linkage
Information linkage/
utilization

Field streamlining/automation

IoT Subcommittee:
Metals & Recycling
Division (Saganoseki
Smelter & Refinery, HMC
Department of Hitachi
Plant)

IoT Subcommittee:
Functional Materials
Division (Kurami Works,
Copper Foil Departmentof Hitachi Works, JXPT*
Kakegawa Works)

IoT Subcommittee:
Thin Film Materials
Division (Isobar Works)* JX Metals Precision Technology Co., Ltd.

55 JX Nippon Mining & Metals Corporation

IoT Subcommittee:
Tantalum and Niobium
Division (Mito Plant,
Thailand plant, Germany
plant of TANIOBIS)IoT Subcommittee:
Corporate departments

Exploring cutting-edge technologies
Surveying/verifying trends in cutting-edge technologies

Operating sites

Building centralized data management/
analysis infrastructure

Visualize, reduce GHGs
Visualizing, analyzing, and reducing
CO2 emissions
Information linkage/utilization

Data utilization
infrastructureGroup/affiliatecompanies

Information linkage/utilization Business partners(suppliers/distributors)
Ensuring safety

Streamlining, automation, prediction/forecasting, evolving development, simulations

IoT Subcommittee:
Mineral Resources
Division (Caserones
Copper Mine, Kasuga
Mine)

Data scientist education
Improving IT literacy

Developing digital human resources

ESG Promotion Department

Centralized management/utilization of data

Using SCM*2 to optimize
raw materials/inventories

Information linkage/
utilization

Six-Year Plan

Streamlining/automating office work
Going paperless,streamlining, automatingGroup-wide data utilization environment

Developing data governance policies
and strengthening IT governance

Developing and strengthening governanceOverseas sites
Introducing Zero Trust Networks,
new computers

Optimizing infrastructures and networks

Activities that had been conducted by subcommittees have been restructured for total optimization.
In the six years through 2028, we will develop an infrastructure base for data integration using the new network, and will also utilize the digital twin model, leading to a new value chain.
*1 Enterprise Resource Planning*2 Supply Chain Management

Sustainability Report 2022 56

Section 3 Materiality and ESG Management
Special Feature 3

Further Accelerating our Digital Transformation (DX) Strategy

DX in Base Businesses (Mineral resources, Smelting, Recycling)

DX in Focus Businesses (Advanced Materials)

Installing Automatic Control Systems at Copper Concentrates Processing Plants

Developing Image- Based Inspection Technology for Micro-Connector Injection Molding
Processes

Caserones Copper MineAt the Caserones Copper Mine in Chile, we are engaged in awide range of initiatives to introduce advanced technologies,
with a focus on IoT. This includes condition monitoring for mining
heavy equipment and ore filtering-related equipment (data collection and reporting), early detection of problems by installing
cameras, and evolving machinery operation control.
By building a system that makes use of the ideas of thehighly-talented staff on the Chilean side, and by ensuring strong
teamwork with engineers seconded from Japan, we aim tofurther improve the performance of the copper concentrates
processing plant and further stabilize operations. We are also

working to adopt and roll out these success stories to othersites, such as the Saganoseki Smelter & Refinery.

Caserones
Copper Mine

Nasu Works, JX Metals Precision Technology Co., Ltd.
We are working to automate production processes for advanced
materials at the Nasu Works through the use of image processing technology. In the inspection process of micro-connectors
and other precision components, defective products are sorted
and identified in detail based on multiple images. Since it isimportant to capture images that enable precise and stable
identification of the subject during image analysis, we conducteda series of tests of the image capture environment and methods
by installing numerous cameras at various positions and angles
in the actual process.
For one product (an electronic component about 1.5 mmlong), we developed a device that can capture 34 close-up
images with 10 cameras for each item. The resulting images areprocessed to determine whether the item passes inspection ornot. This enables mid-process determination and removal of
defects such as surface chipping and irregularities that could
not be detected until visual inspection in the final process. In
addition to reducing manpower and increasing efficiency in inspections, feedback on defective products has become faster,and process improvements have not only reduced the defectrate itself, but are also being used to analyze defect factors thatwere previously unknown.

Illustration of inspection system

Impact of DX Promotion
Implementing the new inspection system
improves defect rate:

Copper concentrates processing plant at the Caserones Copper Mine

23.1% 2.9%
Strengthening Supply Chain Management (SCM) for Green Hybrid Smelting
Saganoseki Smelter & Refinery, JX Metals Smelting Co., Ltd.
The JX Nippon Mining & Metals Group aims to establish hybrid
smelting technology that significantly increases the ratio of recycled raw materials by leveraging its accumulated strengths inmaterial recycling technologies. In order to cope with the increase in the amount of recycled raw materials collected, weare improving the efficiency and strengthening the managementof the series of processes from raw material procurement tooperation. By establishing a system that aggregates data on raw

Saganoseki Smelter & Refinery (Oita Prefecture)

57 JX Nippon Mining & Metals Corporationmaterials and each process and provides feedback with thenecessary information, we will pursue total optimization andimprove productivity by collecting raw materials in a timely manner and improving the accuracy of production forecasts. Furthermore, in order to realize our Sustainable Copper Vision, we
will continue to strive toward the percentage of recycled raw
materials (input ratio of raw materials or content ratio in products) to 50% or more by 2040.

Production line at Nasu Works

Reducing Target Defect Rates by Utilizing Data, Automating with Image Analysis andIntroduction of Arm Robots
Thin Film Materials Division, Isohara Works
In the process of manufacturing semi-finished sputtering targets
from raw powder, the relationship between raw powder conditions and the occurrence of defects is analyzed and provided
as feedback to the manufacturing department to reduce thedefect rate. In the process of shaping semi-finished sputteringtargets, pressure is applied to these semi-finished products.
Traditionally, these semi-finished products weighing several tensof kilograms had to be manually set on the shaping equipment,a task that was extremely burdensome for operators. Therefore,
by using image analysis to determine the shape of deformed
semi-finished products, we calculated the appropriate processing method and combined this with an arm robot to automate
the setting process. This not only reduced operator workload

and improved work safety, but also enabled unmanned operation, contributing to increased productivity.

Automated inspection system utilizing an arm robot

A converter furnace at the Saganoseki Smelter & Refinery

Sustainability Report 2022 58

Section 3 Materiality and ESG Management
Special Feature 3

Further Accelerating our Digital Transformation (DX) Strategy

DX in R&D
Exploring New Materials with Advanced Computational Science Harnessing Deep Learning
Simulation Team, Advanced Technology & Strategy Department, Technology Development Center
Our R&D units use molecular simulation software, a cutting-edge
deep learning technology that accelerates quantum chemical
calculations, as well as materials informatics technology to explore new materials in the areas of copper alloys, ceramics
solid-electrolytes, and more. The simulation team conducts interviews with the Material Development Group and customizes

algorithms for each material topic to aid in research and prediction of new materials.

Beginning in fiscal 2019, we have been working to enhance ourdigital resources and strengthen their training. In data scientist
education, we have expanded our training programs according
to the level of each employee, such as beginner programs foryoung employees and intermediate programs for mid-career
employees. We also launched follow-up education via e-learningin fiscal 2021, and plan to start literacy education for all employ-ees in fiscal 2022.
We are also working to improve the level of our DX education
by strengthening cooperation with educational institutions, suchas joint research with Tohoku University and dispatching employees to the Shiga University Graduate School of Data
Science.

Promoting Strategic IP Activities

A simulation in progress

Building a Digital Twin Infrastructure Applicable from Development to Manufacturing
cesses. By doing so, we aim to build a digital twin infrastructurethat can be applied from R&D to manufacturing, sales, and evento the customer’s premises in the future.

Strengthening DX Infrastructure

The Group regards patent information as big data useful forunderstanding technological trends, and utilizes it not only forthe purpose of preventing infringement and determining patentability, but also for various other purposes. For example, by
combining IP information from our Group and others with business and market information, we conduct research and analysis(IP landscape) to anticipate changes in customer needs andtechnology trends, and contribute to the creation of development themes and the search for partners. In fiscal 2021, we held
workshops to promote internal IP landscape activities, creating
a mock IP landscape with IP
and marketing personnel.

Our Patent Analyses
3,500
JX Nippon Mining & Metals

3,000
Right holder score

The JX Nippon Mining & Metals Group will actively incorporate
cutting-edge real-time simulation technologies and artificial intelligence methods to utilize a variety of simulations not only inmaterial exploration, but also in design and manufacturing pro-Enhancing DX Human Resources and Strengthen Training

2,500
2,000
1,500

Competitor A
Competitor B

1,000
500

Implementing a New IT Infrastructure Based on the Zero Trust Approach

0Competitor C

Competitor D

50

60

70

80

90

Highest patent scoreachieved with conventional perimeter security networks, thereby
raising the security level of the entire Group in a uniform manner.
This system is already in operation at JX Nippon Mining & Metals’ Head Office and operating sites, and will be rolled out toGroup companies in Japan and overseas in stages.

In response to changes in work styles amid the COVID-19 pandemic and requests from business partners to strengthen security measures, the Group has been upgrading its own network
based on the concept of zero trust. This is the most advanced
cloud-based security service available today, enabling security
management at the terminal and user level that cannot be

SaaS (Software as a Service)

Internet

SASE(Secure Access Service Edge)JX Nippon Mining &Metals Head Office/branches

59 JX Nippon Mining & Metals Corporation

Plants/Smelters

Data centers* Drafted by JX Nippon Mining & Metals based on data from the Biz Cruncher®
website by Patent Result Co., Ltd.

Message From the Officer in Charge

In the next IoT/AI Six-Year Plan, we will develop measures aimed at total optimization insteadof individual optimization.

Next-Generation IT Infrastructure Using a Zero Trust Model

Public cloudA workshop in progress

Affiliates

Mobile users

The reason why our Group was quick to take the helm in promoting DX in all areas throughout the organization was a clear sense of urgency. We believe that, in order to respond to rapid changes in the businessenvironment, it is essential to utilize cutting-edge digital technology, and unless we start working on this at
an early stage, even at the risk of failure, it will be impossible to remain a leader in the non-ferrous metals
industry.
The members of the subcommittees for each division have played a central role in supporting the introduction of new technologies in close cooperation with field engineers at each plant. However, we believethat the introduction of a system for advancing demonstration tests so that we can actively tackle entirely
new technologies has led to significant results. Although some of the 120 demonstration tests conducted
over a period of five years, did not result in practical application, I believe that a positive mindset was fostered among field stakeholders toward investigating the causes of these failures and applying their findings
in future action. This, I believe, has helped a culture of challenge without fear of failure take root throughout
the Group.
In the past, planning has focused on bottom-up, plant-by-plant, individual optimization activities. However, as we have worked to automate and streamline, analog data is being replaced by digital data, andwe have been solidifying an infrastructure for aggregating information. In the IoT/AI Six-Year Plan to begin
in fiscal 2023, we will think beyond the boundaries between plants and operating sites for each businessand develop measures aimed at total optimization, with a primary focus on data utilization throughout the
supply chain.
Copper, a mainstay product for the Group, is an indispensable material for promoting DX in society, andwe must meet the demands of our customers and the market as a technology-based company. We intend
to further accelerate the Group’s DX strategy and quickly establish a rapid technology development system
and a highly efficient profit structure.

JX Nippon Mining & Metals Corporation
Executive Officer, General Manager, IT
Department Technology Group
Senior Executive Engineer, Administration Department

Ebihara Hiroyuki

Sustainability Report 2022 60

Section 3 Materiality and ESG Management

Materiality 2

Provide Advanced Materials That Support Lives and Lifestyles

Developing Advanced Materials
In order to contribute to the development of a sustainable society, the Group relentlessly pursues innovation by advancing andutilizing core technologies accumulated to date, and through co-creation with outside resources.
WEB

JX Nippon Mining & Metals’ Core Technologies

https://www.jx-nmm.com/english/rd_sp/core_tech/SocialMateriality 2

Provide Advanced Materials That Support
Lives and Lifestyles

The excellent properties of the major base metal of copper and a variety of minor and precious metals have supported theevolution of electronic devices. The JX Nippon Mining & Metals Group continues to pursue technical rationality and efficiency, as
well as make improvements in product quality and properties of these materials, so we can rapidly offer society products andtechnologies supporting the coming data society and IoT/AI society.
Developing Advanced
Materials

Promoting Open
Innovation

Building a Development
Framework and Fostering
Development Personnel

Efforts to Cultivate the
Next Generation

P62

P64

P67

P69

KPIs and Progress

Assessment:

Achieved/Steady Progress

KPI

Fiscal 2021 Results/Progress

Develop advanced
materials needed by the
IoT/AI society

In order to capture growing demand, we have announced a series of production
capacity expansion plans, including the construction of new plants and siteacquisition, as well as measures to strengthen our supply chain. Continuing from theprevious fiscal year, we have promoted open innovation through collaboration withcompanies and universities to develop advanced materials needed by the IoT/AI
society.

Build a framework to
support technologybased management

With the goal of continuously generating innovative technologies and products fortechnology-based management, we have built a framework for development andworked to foster development personnel to generate new innovations and diversify
human resources.

61 JX Nippon Mining & Metals Corporation

Not Achieved

Two New Plants in Hitachi City Expanding
Production Capacity of Advanced Materials

Acquisition of a Building Site for Expansionof Production Capacity in Arizona, U.S.

The balance of supply and demand for advanced materials suchas sputtering targets for semiconductors and treated rolled
copper foil has been tight in recent years, making it an urgent
issue to build a supply system that can fulfill strong market demand. Under these circumstances, we have decided to construct two new plants in Hitachi City, Ibaraki Prefecture, to expand our production capacity of advanced materials.
This will increase our capacity for sputtering targets for semiconductors by a total of 32 billion yen, or approximately 80%
versus fiscal year 2020. In addition to strengthening existingsites, we plan to invest approximately 14 billion yen to construct
a new plant in the HITACHI HOKUBU Industrial Park to handle
melting and rolling processes.
For treated rolled copper foil, we plan to establish a newplant in the Shirogane district, to be part of the Hitachi Works,
with a total cost of 16 billion yen. Until now, the Hitachi Works
has been handling surface treatment as the final process. With
the production line for the rolling process also being installed in
the new plant, production capacity will increase by approximately 25% versus fiscal year 2020.

Accelerated moves towards digital transformation and decarbonization are currently driving rapid expansion in the semiconductor industry. As part of the trend, leading semiconductor
manufacturers, among the Company’s major customers, areplanning successive investments in the United States. The Company had already established JX Nippon Mining & Metals USA,
Inc. in Arizona, which is a U.S. semiconductor industry hub, and
it is necessary to expand production capacity further to fulfill
customer needs.
Therefore, in March 2022 we acquired approximately
260,000 m2 of land, roughly six times the area of the existing
site, in Arizona. Construction of a new sputtering target plant isplanned to begin in the second half of fiscal year 2022, with
operations to commence in fiscal year 2024 or onward. As aresult, production capacity in the U.S. is expected to increaseby 2.5 times, compared to the previous capacity. We will alsoutilize the site not only as a base for production of sputteringtargets for semiconductors, but also as a site for new businessdevelopment, and we aim to make it the center of our businessin the advanced materials field in the US.

Rendering of the New Hitachi-kita Factory (tentative name)(scheduled to start operation in the second half of fiscal 2023)

Assessment

Rendering of the new base

Image of the New Hitachi Factory (tentative name) (scheduled tostart operation in the first half of fiscal 2024)

Sustainability Report 2022 62

Section 3 Materiality and ESG Management
SocialMateriality 2

Provide Advanced Materials That Support Lives and Lifestyles

Strengthening the Tantalum Target
Business Supply Chain

Exhibited at the 8th Metal Japan(highly-functional metal expo)

In April 2022, the Company made tantalum and niobium smelterTokyo Denkai Co., Ltd. into a wholly owned subsidiary. Tokyo
Denkai was founded in 1950, and possesses outstanding technology and production capabilities in the fields of smelting highmelting-point metals. Today, its main business is producing ingots for tantalum sputtering targets, which are used as a protective material for semiconductor interconnects.
Tokyo Denkai procured high-purity tantalum powder fromTANIOBIS, a Group company, and used it as raw material tosmelt ingots, which were then sold to our Isohara Works. Since
April 2021, we had invested in Tokyo Denkai together with Mercuria Investment Co., Ltd. and through this new acquisition ofshares, we have further strengthened our partnership. We willfurther strengthen our supply chain in the tantalum sputteringtarget business and aim to create synergies with the JX Nippon
Mining & Metals Group in the minor metal area in general, witha focus on niobium.

We presented an exhibit at the 8th Highly-functional Metal Expo
(Metal Japan) held at Makuhari Messe (Chiba Prefecture) from
December 8 to 10, 2021. Our exhibit presented metallic andceramic materials, including various high-performance copper
alloys and various developed products, centered on a series ofthemes including metal powder for additive manufacturing andcontrolling heat. In addition, we once again prepared a special
website, as in the previous year, to provide easy-to-understandinformation on products and technologies that could not bepresented in panels.

Established the Crystalline Material
Business Promotion Office
It is anticipated that demand for compound semiconductor
substrates used in optical devices and other high-functionality
crystalline materials will grow in a variety of fields, including lightreceiving and emitting devices, which are essential amid thesignificant increase in data communications and the practicalapplication of advanced sensing technology in the 6G era, andpower semiconductors, critical for achieving a decarbonizedsociety. Moreover, the Company has the advantage of technologies in the crystalline materials field such as high-purity refining,in which it excels.
Against this backdrop, in October 2021, we established theCrystalline Material Business Promotion Office within the Advanced Technology & Strategy Department, Technology Groupin anticipation of future business expansion in this field. With thisnew organization that will be centrally responsible for supporting
the planning and execution of expansion strategies for existing
businesses and promoting the development of next-generationmaterials, we will aggressively promote the development of
next-generation crystalline materials.

At our exhibition boothWEB

Exhibition Special Website

https://nmmjx-dc.com/en/

Received the EPIC Distinguished SupplierAward from Intel Corporation
The award recognizes a consistent level of strong performanceacross all performance criteria. To qualify, suppliers must exceed
expectations, meet aggressive performance goals, and score
80 percent or higher in performance assessments throughout
the year. In 2022, only 26 suppliers in the Intel supply chain
network earned this award.
“As one of only 26 Distinguished Supplier Award recipients
across the Intel global supply chain, JX Nippon Mining & Metals
Corporation has been crucial to Intel’s success while offering
agility and flexibility during the ongoing volatile supply chain
environment,” said Keyvan Esfarjani, EVP and Chief Global Operations Officer at Intel. “They have provided exceptional collaboration and commitment toward safety, quality, diversity & inclusion, and exceeded our expectations in support of Intel’s supply
chain operational excellence. Earning this award speaks to their
dedication to Intel values and their partnership.”

Promoting Open Innovation
We are promoting co-creation in a variety of formats, including collaboration with unique technologies held by Group companies,
joint research with universities and other research institutions, and partnerships with external companies. These activities have theaim of building a system capable of generating new technologies and value.

Additional Investment in Novel Crystal
Technology, Inc., a Developer of Gallium
Oxide Crystals

Novel Crystal Technology, Inc. is a start-up engaged in development aimed at commercializing gallium oxide crystals, which
are expected to be adopted in future generations of power
semiconductor devices. The Company first took a capital stakein Novel Crystal Technology in June 2020, and has since collaborated in efforts such as development of raw materials. Novel
Crystal Technology has made a new third-party allocation ofshares aimed at procuring funds to augment its manufacturing
capabilities with a view to product development of high voltage
diodes scheduled for this year. The Company has taken part ofthis allocation and increased its stake in Novel Crystal
Technology.
As a material for use in future generations of power semiconductor devices, gallium oxide will enable innovation in thedesign of power sources for electric vehicles and other applications and of electric power transmission systems, and is expected to contribute to effective energy use. The Company andNovel Crystal Technology will combine their technologies andknowledge to contribute to swift commercialization of thismaterial.

the Company and Group member TANIOBIS.
Alloyed has now successfully designed and manufactured
ankle joint implants using metal additive manufacturing, and thefirst surgery using these implants was performed in September
2021. Alloyed intends to increase the use of its ankle joint implants in the future, and will also expand development into thedesign of implants for other areas of the body to assist those
suffering from bone cancer.

Ankle implants (artificial bones) designed and formed using metal additive
manufacturing

Final Selection Carried Out for Accelerator
ProgramGallium oxide 100mm epitaxial wafer/substrate

Alloyed Develops a Titanium Alloy Artificial
Bone
U.K.-based Alloyed Limited, in which the Company has a stake,is a start-up from Oxford University whose business includes
designing alloys and molds for metal additive manufacturing. As
one application for metal additive manufacturing, Alloyed isdeveloping medical implants (artificial bones) in cooperation withOn March 29, 2022, the Company, in collaboration with Francebased Agorize, conducted the final selection for the Innovation
Challenge for the Next Generation 2021-2022 accelerator program, with the aim of creating new businesses. The program
received a total of 65 proposals for a rich variety of ideas fromstart-ups and the academic community around the world. In
carrying out the final selection of the seven companies shortlisted after interviews, we selected the top three companies basedon evaluations from the perspectives of technology advancement, attractiveness of the business, and synergy with JX Nippon Mining & Metals Group’s business. In addition, the winnerof the Audience Prize was selected by votes from Company
employees. Going forward, we will explore the potential for awide range of partnerships with the winning companies, including joint development, funding assistance, capital alliances,provision of materials, and provision of sales channels.

Compound semiconductor substrates(indium phosphide, cadmium zinctelluride)

63 JX Nippon Mining & Metals Corporation

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Section 3 Materiality and ESG Management
SocialSelection Results for the Accelerator Program
Rank

Company
nameLocation

Business plan

Grand Prize

Additive Flow

UnitedKingdom

Multi-scale design
optimization software formetal additive
manufacturing

Runner-Up

PrintCB

IsraelCopper ink for printed
electronics

Outsense Inc.

Japan

Modeling new shapes ofcopper foil using automatic
shape generation andsimple analysis tools

Second Runner-Up
Audience Prize

Materiality 2

Provide Advanced Materials That Support Lives and Lifestyles

tive Research Laboratory aims to achieve rapid practical deployment of materials for highly functional next-generation devices.
To establish platform technologies for next-generation wirelesstelecommunications, research will target development of new
manufacturing methods for flexible circuit boards, technologies
for bonding copper foil and resin, and assessment of high-frequency conductivity of copper foil and materials bonding copper
foil and resin. The laboratory will also go beyond these fields todevelop materials and technologies in various domains relating
to nonferrous metals.

The final selection meeting (held online)

Invested in an Israeli Battery Materials
Development Company
In February 2022, we invested and took a stake in Addionics
Limited, an Israeli company that develops smart 3D electrodes
used in lithium-ion batteries. Addionics is a start-up developing
3D electrodes for lithium-ion batteries, and is using AI technology to develop 3D-shaped electrodes with porous structures.
Compared to ordinary electrodes, 3D electrodes enable increased loading of active material, which improves energy density while reducing battery internal resistance. For this reason,
they are expected to contribute to extended EV driving range,
miniaturization of IoT devices, and reduced charging time.
The Company’s investment will provide a springboard tobuild a stronger relationship with Addionics, and we will move
forward with business development related to battery materials,
while considering future collaboration with Addionics. We also
believe that the investment will provide an opportunity to build
networks with outstanding start-ups and academic institutionsin Israel, which is a hub for tech companies. This will lead togeneration of new business.

Established a Material and Technology
Cooperative Research Laboratory with the
National Institute of Advanced Industrial
Science and Technology
In November 2021, we established the JX Metals-AIST Advanced Material and Technology for Future Society Cooperative
Research Laboratory. By merging and further developing materials development technologies and manufacturing process
technologies possessed by AIST and JX Metals, the Coopera-

65 JX Nippon Mining & Metals Corporation

JX Metals President Murayama Seiichi (left) and AIST President Ishimura Kazuhiko(right)Invested in Venture Capital Fund
The Company decided to invest 500 million yen in the MIRAISOZO 2 Limited Partnership venture capital fund managed by
Innovations and Future Creation Inc. Innovations and Future
Creation is a venture capital firm that works with the Tokyo Institute of Technology. As well as investing in start-ups at the seedstage*1 and early stage*2 in fields such as materials, chemicals,
semiconductors, IoT, space, and robotics, the firm also provides
management support to help start-ups to move to the nextstage. To date the fund has invested in 31 companies, severalof which are now publicly listed.
Traditionally, we have invested in and collaborated with startups mostly at the early stage. However, in order to further broaden the scope of our efforts, we decided to invest in venture
capital funds. Through this investment, we will support the commercialization of outstanding research produced by the Tokyo
Institute of Technology, and develop collaborations built on thisresearch.
*1 Seed stage: Generally
denotes a start-up aroundthe time of its establishment, when it is solidifying
the ideas and concepts of
its business*2 Early stage: Generally refers
to a start-up that has
passed the seed stage andentered the development
stage
Exchange meeting with Innovations and Future
Creation

Activities of the JX Metals Endowed Unit
(Phase 2 to Phase 3)
Despite growing needs for a stable supply of nonferrous metalmaterials in recent years, the pool of researchers and engineers
in Japan working in fields related to smelting, refining, and recycling nonferrous metals has been on the decline. In response tothis situation, JX Nippon Mining & Metals, in collaboration with
the Institute of Industrial Science, The University of Tokyo,
launched the Endowed Research Unit for Nonferrous Metal
Resource Recovery Engineering (JX Metals Endowed Unit) in2012. The purpose of this organization is to develop new environmentally friendly recycling technologies for nonferrous metals
while also developing the human resources responsible for thework in this field.
To prevent the spread of COVID-19, major activities in fiscal
2021 included symposiums held online, like in the previous year.
These symposiums were attended by many people from Japanand abroad.
Against this backdrop, the unit began Phase 3 (five years) in
January 2022. In Phase 3, we plan to further develop our activities to promote understanding and awareness of the importance and future of the nonferrous metals industry, as well as
focus on activities for realizing the SDGs and for STEAM education* to nurture the next generation.
*S TEAM education: An educational concept that combines the initial letters of fivewords: Science, Technology, Engineering, Art, and Mathematics. This concept aims
to develop logical thinking and creative skills that lead to problem solving in the real
world

Presentation of the Shokumon Award plaque (Prof. Fujii Teruo, President of the
University of Tokyo (left) and President Murayama Seiichi, JX Nippon Mining & Metals(right))Members (Fiscal 2021) * Positions and other information are as of fiscal
2021

Okabe Toru H.
Director General, Institute of Industrial Science, The University of
Tokyo
Professor, Integrated Research Center for Sustainable Energy
and Materials, The University of Tokyo
Project Professor

Project Professor Tokoro Chiharu
Professor, Faculty of Science and Engineering, Waseda University
Professor, Graduate School of Engineering, The University ofTokyo
Project Professor, Institute of Industrial Science, The University ofTokyo
Project Professor Kurokawa Harumasa
Project Professor, Institute of Industrial Science, The University ofTokyo
Project Professor Sugano Tomoko
Professor, Institute of Industrial Science and Deputy Director
General, Division of University Corporate Relations, The Universityof Tokyo
Deputy Director, Public Relations Strategic Planning Office,Division for Strategic Public Relations, The University of Tokyo
Patent Attorney

At the press conference for the start of Phase 3
From left to right: Executive Officer Suwabe, Senior Executive Officer Tani, Project
Professor Kurokawa, Project Professor Tokoro, Deputy Chief Executive Officer
Sugawara, Director General and Project Professor Okabe, Project Professor Sugano,
Project Lecturer Ouchi eceived 2022 Shokumon Award from The
R
University of Tokyo
In recognition of these activities at the JX Metals Endowed Unit,
we received the 2022 Shokumon Award* from the University ofTokyo. The University of Tokyo’s Shokumon Award was established in 2002 to recognize individuals, corporations, and otherorganizations that have made major contributions to the growthof The University of Tokyo, either through volunteer work, orendowed courses and research centers. The award was given
in recognition of our outstanding contributions to creating acenter for research, exchange, and education that has attracted
outstanding human resources and advanced information fromall over the world for many years.
 hokumon is the name of the castle gate in the capital of the ancient Chinese state*S
Qi (now Shandong Province) during the nation’s civil war era (403-221 B.C.). It isderived from a legend that the king of Qi treated scholars well, which led to thegathering of the wisest minds in the capital of Qi and the flourishing of academic
activities.

Project Lecturer Ouchi Takanari
Lecturer, Institute of Industrial Science, The University of Tokyo

Lecturer, Integrated Research Center for Sustainable Energy andMaterials, The University of Tokyo

Main Activities in Fiscal 2021 * Positions and other information are
as of fiscal 2021

J uly 2021
The 96th Rare Metal Workshop: “General Discussion: How
Should LIB Recycling Be?”
November 2021
The Science Council of Japan Open Symposium: “Why SDGs?
- SDGs and Carbon Neutrality in Resource and Material
Circulation-” (Co-sponsor)
JX Nippon Mining & Metals Director & Senior Executive Officer
Yasuda Yutaka gave a lecture titled “Current Status and Prospects of Nonferrous Metals Companies’ Contribution to the
SDGs: SDGs in Resource and Material Circulation,” where heintroduced our initiatives
January 2022
Press conference for Commencement of the Third Period
Held the 9th Precious Metals Symposium: “Frontier of Extraction
and Recycling Technology for Precious Metals,” for which this unit
is a joint organizer, in conjunction with the press conference

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Building a Development Framework and Fostering Development Personnel
The Group is working to build a framework for the continuous generation of innovative technologies and products, such as
decarbonization technologies, by promoting DX support in the areas of production and development, developing platforms for thecreation of new development ideas, and strengthening development process management. In addition, we are fostering personnel
responsible for technology development and technology-based business development.

Strengthening Internal Processes for New
Business and Technology Development

Internal Training Held by the Advanced
Technology & Strategy Department

We have introduced the Stage-Gate Process as our management system for business development. In addition, we practiceIdea Seed Bank activities as a platform for generating topics andideas. These efforts are handled by the Advanced Technology& Strategy Department, a department dedicated to the planningand formulation of Group-wide technology strategies.

In addition to human resource development through the Idea
Seed Bank, our Advanced Technology & Strategy Department
holds cross-organizational study groups to help each individual
member of the Group understand the Company and products
outside of their responsibility, and to promote cooperation between divisions beyond their own. At these cross-organizational
study groups, all employees learn about each division’s businesslines, products, and services. Through active Q&A and discussion, each employee gains a better understanding of the Group,
which in turn leads to wider communication with external stakeholders. Through these efforts, we are developing human resources who can play an active role in finding potential co-creation partners, exploring new development themes, and further
expanding existing businesses.

Introduction of the Stage-Gate Process
In promoting new development themes, we have introduced theStage-Gate Process, which divides the development process
into multiple stages. We use Stage-Gate Process for applications from discovery of medium-to long-term topics to commercialization for new products and technologies. The effectivefunctioning of this Stage-Gate Process promotes activities that
continuously generate innovative technologies and products,
such as decarbonization technologies.

Development of Platforms for Generating Ideas
The Idea Seed Bank (ISB), one of the Advanced Technology &Strategy Department’s initiatives, is a platform to encourage
employees to generate and cultivate ideas. It provides support
for the conception of ideas, support for internal reviews, anddiscussions among members. It also offers a forum for employees from different departments and sites can interact with eachother, providing them stimulus to give shape to their own ideas.
One of these ideas generated at the ISB has even been approved as a development theme for one of our divisions in August 2021. The scope was expanded to the corporate departments and the Tantalum and Niobium Division in fiscal 2021,
and to all divisions in fiscal 2022.

A discussion at a workshop held by the Advanced Technology &Strategy Department

ColumnIntellectual Property Initiatives
Intellectual property is an important asset for the technology-based company that we, the JX Nippon Mining & Metals
Group, aim to be. Our intellectual property, technology, and business department work together to strategically protect
and utilize intellectual property with the goal of maintaining our competitiveness and a stable supply of materials. We
also respect the valid intellectual property of other companies and respond appropriately to the risk of intellectual
property infringement.

Initiatives for Promoting Invention
In accordance with the Patent Act, the Group has established the Regulations
Concerning Handling of Employee Inventions. In addition to incentives at thetime of application and registration, we have established our own unique system
to award inventors of profitable patents and inventors of outstanding inventions
to encourage development and invention and promote activities as a technology-based company.
In fiscal 2021, nine inventions were eligible for awards, including improvements in sputtering target quality, increased copper foil productivity, and thedevelopment of a valuable metal recovery process. In addition, we also recognize inventions that are kept secret as expertise, as well as patents.

Developing Intellectual Property Human Resources
The development of intellectual property human resources is important to carry out our intellectual property strategy. In the interest of appropriate acquisition, protection,and utilization of intellectual property and managementof intellectual property risks, the Group provides all employees, including clerical staff, with intellectual property
education based on a systematic program and using its
own teaching materials, as shown on the right.
In addition, in order to address intellectual property
work that is becoming more sophisticated every year, theIntellectual Property Department encourages the acquisition of patent attorney qualifications and conducts study
groups within the department to further improve practicalskills and enhance expertise.

Status of Held Patent Rights
Our Group is actively promoting research and development to become a technology-based company. The intellectual property department collaborates with the business and research department to appropriately protect
and utilize inventions generated in the course of researchand development as intellectual property, thereby contributing to our businesses.
ReferenceSpecial Feature 3: Further Accelerating our Digital Transformation(DX) Strategy > Promoting Strategic IP Strategies ⇒ Page 60
Activities Related to COVID-19 > Participation in the IP Open
Access Declaration Against COVID-19 ⇒ Page 97

67 JX Nippon Mining & Metals Corporation

Fiscal 2021 award ceremony

Educational programs implemented in FY2021•E ducation by job function enabling employees to acquirenecessary knowledge in accordance with intellectual
property skills
Carried out multiple programs, including new employee
education, third-year education, and fundamental
education for technical employees•S pecialized intellectual property training by external
lecturers
Carried out programs such as seminars on draftingstrong patent specifications• Workshops
on the IP landscape
Carried out workshops on simulated IP landscapes withmarketing and intellectual property staff

Number of Patents Held in Japan(Patents)
2,500
2,000
1,500
1,000
500
0

‘09

‘10

‘11

‘12

‘13

‘14

‘15

‘16

‘17

‘18

‘19

‘20 (Year)

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Provide Advanced Materials That Support Lives and Lifestyles

University of Tokyo Faculty of Engineering
Students Invited to Head Office Tour

Efforts to Cultivate the Next Generation
In order to keep stability in securing and supplying irreplaceable nonferrous metal resources and materials, it is essential to develop
human resources who can take on future challenges. Our Group provides young people, mainly from elementary school to high school,with opportunities to gain experience and hands-on practice in a variety of areas, and to learn about nonferrous metals.

Social Studies Field Trip Program for
Elementary School Students
On February 6, 2022, we held the Getting to Know the Copper
Around Us program as a social studies field trip program forelementary school students. This program was hosted by the
Shiba Regional City Office in Minato City for the second consecutive year. Three parent and child groups totaling nine participants joined the program. Participants took part in quizzes
and watched videos about copper, learning about the characteristics of copper and how it is useful in our lives. They also
participated in an experiment on cleaning a 10-yen coin withseasonings and an experiment on heat conduction using different types of metal rods.
Participating elementary school students commented thatthe 10-yen coin experiment was fun and that they would like totry another experiment next time, while parents said that theylearned a lot about copper through the experiment and that they
are looking forward to next year’s event. The positive attitudes
displayed by the children toward the experiments and theenjoyable conversations they
engaged in reaffirmed the importance of continuing to provide opportunities for interaction with the local community.
The program was held with thoroughmeasures against the spread of COVID-19

due to the COVID-19 pandemic).
In fiscal 2021, events were held for junior high students (maleand female), and were limited to the Kurami Works (Kanagawa
Prefecture) and the Saganoseki Smelter & Refinery (Oita Prefecture) of JX Metals & Smelting Co., Ltd. In addition to providing
an opportunity to experience the unique sensations of being
on-site at each location, we introduced the social contributionsof copper and other nonferrous metals and thoughts from science and engineering employees about their work. Throughthese events, we will continue to communicate the role of nonferrous metals in supporting society and the possibilities thatscience and engineering jobs create.

In December 2021, 14 students from the University of Tokyo’s
Department of Systems Innovation, part of its Faculty of Engineering, along with Professor Tokoro Chiharu and Associate
Professor Takaya Yutaro of the same department, were invited
to visit our head office and attend a workshop. Through a tourof the showroom and a simulated experience of the Saganoseki
Smelter & Refinery’s operations using virtual reality (VR), participants learned about the processes by which copper and othernonferrous metal materials are provided to society and contribute to its development. In addition, a workshop was held on thetheme of product development, where active discussions were
held on the topic of what parts of daily life copper’s antimicrobial
properties can be utilized in. Many students who participated in
the seminar commented that it gave them an understanding of
how nonferrous metals are utilized in various fields.

Providing Educational Content
We provide content on our website that allows children to learn
about copper in the form of quizzes and games in order to increase the interest of the next generation in nonferrous
metals.

 ebpage for Kids: What’s Going on WithW
Copper-kun?
Based on the three concepts of learning, having fun, and participating, this content allows children to learn about copper
while having fun.

Participants touring SQUARE LAB

WEBWhat’s Going on With Copper-kun?
(Japanese only)

https://www.jx-nmm.com/copper/
Kurami Works (August 2, 2021)

WEB

A quick and easy-to-understand story
about copper (Japanese only)

https://www.jx-nmm.com/copper/profile/

Held the Rikochallenge Summer of 2021
We support the Rikochallenge (science and engineering challenge) program to help girls experience work in science andengineering, an initiative led by the Gender Equality Bureau of
the Cabinet Office. Rikochallenge is an initiative aimed at supporting future career choices for female students interested inscience and engineering fields. As part of this initiative, theGroup has held plant tours and hands-on experiment sessions
every year since 2015 (sessions were canceled in fiscal 2020

 ebpage for Junior High and High SchoolW
Students: Nonferrous Metals Creating the Future
Simulated experience of an operation site using VR

Saganoseki Smelter & Refinery (August 2 and 10, 2021)

VOICE
Comments from a Rikochallenge Organizer
Students from nearby junior high schools toured our plant and conducted experiments such as
electrorefining and solvent extraction. Many participants commented that the event sparked greaterinterest in science and science-related occupations. They expressed enjoyment in learning about theproperties of copper and other nonferrous metals and actually experiencing these, making them likescience even more. The content was designed to help students realize the fun of science throughhands-on experience of what they have learned in class. For myself, I also enjoyed learning alongside
the students on the organizing side.

69 JX Nippon Mining & Metals Corporation

JX Metals Smelting Co., Ltd.
Administration Department (as ofthe event)Popularizing STEAM Education

While surprisingly few people have a firm grasp on the basics ofnonferrous metals and its manufacturing process, this website
presents the world of nonferrous metals in an easy-to-understand manner.

We have been a regular member of the Platform for Learning
Innovation - Japan (PLIJ) since its establishment. PLIJ aims to
be a groundbreaking organization that brings together industry,
academia, government, and public education with a mission toaccelerate innovation, primarily in elementary and secondary
education, focused on the pillar of STEAM education. Throughour membership in the PLIJ, we will continue our efforts to nurture the next generation for as many children as possible, andto help cultivate the future leaders of our society.
WEB

Nonferrous Metals Creating
the Future (Japanese only)

https://www.jx-nmm.com/future/

Natsuhara Miyu

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ColumnRelationship between Ibaraki Prefecture
and JX Nippon Mining & Metals
Corporation-Major new facility focusing on advanced materials-

Artist’s impression of Hitachinaka
New Plant (tentative name)

JX Nippon Mining & Metals Corporation traces its roots back to the start of operations at the Hitachi Mine in Hitachi,
Ibaraki Prefecture, in 1905. Since then, we have contributed to the development of the city and industry of Hitachi bysupplying copper resources. We continue to provide a stable supply of a variety of products to our customers around theworld. Today, we have several production facilities in the prefecture. These include our main Hitachi Works, a combined
facility for manufacturing and recycling advanced materials, and Isohara Works, where we manufacture materials used forsemiconductors and flat panel displays. In addition, we are constructing three new facilities, including the Hitachinaka
New Plant (tentative name), which is mentioned on the next page. We have a very close relationship with Ibaraki
Prefecture, and the area is very important to our business.

Joban Expressway
Mito Plant,
Taniobis Japan
Corporation

Ibaraki Prefectural OfficeKita-Kanto Expressway

and job creation. In addition, the location is easily accessible
from our existing plants in Ibaraki Prefecture and our Tokyo
headquarters. This will allow us to further strengthen inter-groupcooperation and build a more efficient operational structure.

Sputtering target for semiconductor

Treated rolled copper foil for smartphones
and other devices

Contributing to the Community
Since our establishment, the JX Nippon Mining & Metals Group
has always conducted business in the spirit of coexistence andwith a desire to share our prosperity with the local community.
So as we look ahead, with the construction of our new plants
and the importance of reliable supply chains growing, we arepromoting activities to further develop the region and increase
our visibility.
One such specific initiative is becoming an official partner ofMito HollyHock, a soccer team in the Japan Professional Football League (J-League), in April 2022. In addition, we have madeourselves more visible in the local community by sponsoring the
LuckyFM Green Festival, a music event organized by Ibaraki
Broadcasting Corporation at the National Hitachi Seaside Park,and the Hitachinaka Festival, which is held at various locationsin Hitachinaka City. We are also advertising on station billboards
and on the outside of trains in the region. These events havealso led to more contact among our facilities in the prefecture
as well as increased employee motivation.

Isohara Works
New Hitachi-kita Factory(tentative name)
Hitachi Works
Hitachi New Plant(tentative name)

Port of Ibaraki (Oarai)

JR Joban LineIn March 2022, we acquired a large site in Hitachinaka City forthe construction of a new plant. In addition to being involved inexisting areas of growth, such as sputtering targets for semiconductors, treated rolled copper foil, and high-performancecopper alloys, the new plant will be a core center of our Groupfor new business related to advanced materials. Underlying theconstruction of the new plant is our desire to satisfy the highly
anticipated growth in demand for our advanced materials thatwill come with ever-increasing global digitization and electrification. To that end, we fully intend to establish new manufacturing
and R&D facilities here and expand our supply capacity.
The new plant will be our largest investment to date in advanced materials. It is scheduled to start operations in stages
beginning in fiscal 2025, and it will contribute to the reliablesupply of advanced materials, regional economic development,●Existing locations●Facilities underconstruction●Key points

Port of Ibaraki (Hitachi)

Ibaraki Airport

Large-scale new plant in Hitachinaka City
under construction

Hitachinaka New Plant(tentative name)

Ibaraki Prefecture Basic Information
Prefectural Government Office: Mito City
Population: Approximately 2.85 million
people (11th in Japan)
Area: Approximately 6,097km² (24th inJapan)
Main rail connections: JR Joban Line, JR
Mito Line, Tsukuba Express, Kashima Rinkai
Railway-Oarai Kashima Line, and Hitachinaka
Kaihin Railway-Minato Line

Mito Station

Port of Kashima
Tsukuba Factory,
Furuuchi Chemical Corporation

Out-of-prefecture companies located in
prefecture: largest number of any Japanese
prefecture

Mito HollyHock JX Nippon Mining & Metals
Group “Thanks Match”

Sponsorship of firework display at LuckyFM Green
Festival

In-prefecture advertising (Mito Station)

In-prefecture advertising (Kashima Rinkai Railway-Oarai Kashima Line)

Joint press conference on the construction of the Hitachinaka New
Plant (tentative name) (Left: Kazuhiko Oigawa, Ibaraki Prefecture
Governor Right: Seiichi Murayama, Group President)

Professional sports teams: Kashima
Antlers (soccer), Mito HollyHock (soccer), andIbaraki Robots (basketball)* Source: Ibaraki Prefecture official website

71 JX Nippon Mining & Metals Corporation

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ColumnJoint course with Kyoto University Graduate School of
Advanced Integrated Studies in Human Survivability(Shishu-Kan) toward achieving the SDGs.

On the basis of the Comprehensive Collaborative Research Promotion Agreement for Achievement of the SDGs signed in January
2020 between JX Nippon Mining & Metals and Shishu-Kan, the Joint Chair of Global Social Resilience for the Achievement of SDGs,
was established in May of the same year. With central focus on the keyword “SDGs,” this program aims to identify, extract, andresearch issues in all domains and provide solutions to global issues related to the SDGs.

Four Areas of Activity
Program-Specific Professor Hashimoto Michio and Program-Specific Associate Professor Shimizu Mika, two Shishu-Kan professors, have been appointed to lead the joint
course. Its first event (held online in May 2020), an online lecture
held on May 2020, covered the program’s two faculty members’
research fields and content, with participation from our Company directors and employees. This lecture serves as the starting
point for our work to advance the following four core activities
from fiscal 2021 onward. (See table on right.)

Activity

Details

1. M
 etals Business
Study Group

Company employees and Shishu-Kan
students work together to study and plansolutions to various issues facing ourbusiness

2. Resilience
WorkshopWorkshops for Company employees on
various resilience topics

3. SDGs Future
Vision StudyGroup

Lectures by Shishu-Kan faculty members
and research presentations and discussions
by students in each of Shishu-Kan’s eight
academic fields*.

4. Decarbonization
Workshop

Discussion on net zero CO2 emissions fromthe perspectives of both academia andbusiness* Humanities and Philosophy; Economics and Management; Law and Politics;
Linguistics; Science and Engineering; Medical and Life Science; Informatics andEnvironmental Studies; and Art

Metals Business Study Group (Led by Program-Specific Professor Hashimoto Michio)
After a presentation giving an overview of the JX Nippon Mining& Metals business by our employees, Shishu-Kan faculty andstudents visited the Saganoseki Smelter & Refinery of JX Metals
Smelting Co., Ltd., Hitachi Works, and Nippon Mining Museum.
This was followed by a presentation from the vice president ofour company on developing the nonferrous metals business ina way that achieves SDGs. After the presentation, our employees and Shishu-Kan students engaged in joint workgroups.
Starting in fiscal 2021, presentations of the results of this joint

work have been held. Shishu-Kan’s faculty members attend—
including Shishu-Kan deans Professor Takara in 2021 and Professor Sekiyama in 2022—as well as our company president
and other executives. In addition, they have engaged in active
discussions. In fiscal 2022, eight students attended, including
two international students, with some of the presentations given
in English, making it a study group that embodies its diversity.
Participation in the study group earned student’s academic
credits at Shishu-Kan.

Presentation Themes nalysis of nonferrous metal price trends using financial
A
engineering, and utilization of mines post-closure tudy of contributions to the local community in the HitachiS
area

Presentation of results

 R strategy for 2050 (secure, train, and utilize talent; giveHback to society; and public relations) itachi Copper Museum Project (Proposal for renovationHand improvement of Nippon Mining Museum) stablishment of new recycling systems and developmentEof space mineral resourcesOpportunities to provide materials for healthcare industry

What is Shishu-Kan?
It is a graduate school that offers a five-year integrated doctoral program to foster global leaders who are ready to takeon the various challenges facing modern society. These challenges include climate change; natural disasters, regional
conflicts; super-ageing societies; poverty; inequality; energy, food, and water issues; and harnessing artificial
intelligence. The school is developing a unique curriculum that transcends the barriers between the humanities andsciences to nurture talented people with overarching views. (Note: Shishu-Kan is the Japanese acronym for thisgraduate school.)

73 JX Nippon Mining & Metals Corporation

Development of comprehensive SNS strategies
Lecture at Shishu-Kan

Sustainability Report 2022 74

Section 3 Materiality and ESG Management
SocialMateriality 2

Provide Advanced Materials That Support Lives and Lifestyles

Resilience Workshop (Led by Program-Specific Associate Professor Shimizu Mika)

Decarbonization Review Workshop (Led by Professor Dimiter Ialnazov)

Program-Specific Associate Professor Shimizu Mika held series
of workshops on resilience for our employees. By experiencing
resilience thinking through workshops, employees were provided with opportunities to reflect their own insights and work
styles. This way of thinking includes acting as a middleman inbringing about change and being able to think the whole anddetails in a continuum (as a metaphor, “looking at the forest andtrees in a continuum”). The workshops have been held morethan 15 times since fiscal 2021, being attended by a wide rangeof participants, from junior employees to newly appointed managerial staff.
In addition, Program-Specific Associate Professor Shimizu
gave a lecture titled “To link is to live” to students from Saganoseki Elementary School and Saganoseki Junior High School in
Oita City. These are two schools near the Saganoseki Smelter& Refinery of JX Metals Smelting Co., Ltd. To commemorate the100th anniversary of the Saganoseki Smelter & Refinery in 2016,
JX Nippon Mining & Metals and JX Metals Smelting began apainting and essay contest every three years for students fromnearby elementary and junior high schools. this lecture provided
an opportunity for students to receive inspiration and insights
for working on their paintings or essays toward the third contest
to be held this summer.

Discussions were held from the perspectives of both academia
and business on the fiscal 2050 net-zero CO2 emissions goal of
JX Nippon Mining & Metals. Members of the Carbon Free Projectand our employees and JX Nippon Research Institute for Technology and Strategy Co., Ltd. participated in a lively discussion
with faculty and students from Shishu-Kan on the following
topics.
1. P
 rocurement of electricity from renewable energy sources
2. Side effects of decarbonization
3. Renewable energy development and its coexistence withlocal communities

SDGs Future Vision Study Group (Led by
Shishu-Kan faculty)
Eight members of faculty gave special lectures to our board
members and employees on cutting-edge trends in each of theeight academic fields covered by Shishu-Kan. Many employees
participate in these sessions, giving them opportunities to encounter topics they would not normally come across in theirregular work. It is also a chance to see things from different
perspectives.

Lecture and Q&A session

75 JX Nippon Mining & Metals Corporation

Workshop for new managerial staff

Participants touring the Square Lab

VOICE

Lecture at Saganoseki Junior High School

Eight Academic Fields

Lecture Themes

1. Informatics and Environmental
Studies

Overview of Shishu-Kan and its Disaster Risk
Research

2. Medical and Life Sciences

Preventing dementia from the perspective ofresearch on intervention

3. Economics and Management

Sustainable development in developing
countries and challenges related to making
renewable energy available

4. Linguistics

Global human resources necessary going
forward

5. S cience and Engineering

Global issues from perspective of naturalsciences and encouraging cross-disciplinary
research

6. H
 umanities and Philosophy

Philosophy of attention in the information
age and mindfulness and inherent wisdom of
Buddhism

7. L aw and Politics

Toward sustainability transformation (SX) andbeyond ESG management

8. ArtInnovations in art

Comment from a Course faculty member

Comment from a Course faculty member

There are many examples of industry-academia collaboration, but more often
than not the academia of industry-academia only means faculty, not students.
We wondered if students, especially
doctoral students with their cutting-edge
expertise and fresher minds, could be
new partners with industry. With this inmind, we began this initiative. When we
tried it, it was a real eye-opener—and Program-Specific Professor atsome raw nerves were hit, but we be- Kyoto University, Shishu-Kan
Hashimoto Michio
came aware of a lot of different things.
And it was a valuable opportunity forstudents to exchange knowledge with the real world.

While the resilience thinking and approach I promote came from the academic world, it is very relevant to humanresources development, SDGs, and innovation in business. It is no exaggeration to say that resilience thinking is oneof the essences for a company to survive
in symbiosis with various elements inglobal society. It is really great to witness
the synergy among different elements Program-Specific Professor atand the dynamic changes among partic- Kyoto University, Shishu-Kan
Shimizu Mika
ipants that arise through this series ofworkshops. By organizing these workshops, I hope to create a collaborative path toward achieving the SDGs.

Comment from participant in Metals Business
Study Group

Comment from participant in Metals Business
Study GroupMy research field is tissue engineering,and I chose the Advanced Study of theMetals Business class because of its
unique curriculum and the positive feedback I received from senior students. In
fact, I learned from JX Nippon Mining &Metals employees not only upstream
and downstream business operations,but also efforts toward environmental
and social impacts. By learning from JX Kyoto University, Shishu-Kan (2nd year
Nippon Mining & Metals in terms of how student)
Mutsuda Kaori
the company has grown and evolved
while facing numerous challenges, suchas the depletion of mineral resources, environmental pollution, advancement into overseas markets, and intensified global competition, I hope
to identify my own core technology, to repeatedly challenge myself, andto brush up my decision-making capabilities.

I’m very grateful to have had the opportunity to collaborate with JX Metals company as part of Kyoto University’s exchange program. It was a very rewarding
experience, both personally and professionally. I would love to have more opportunities to collaborate in the future.

Kyoto University, Shishu-Kan (2nd year
student)

Sebastian Escobar

Sustainability Report 2022 76

Section 3 Materiality and ESG Management
SocialMateriality 3

Materiality 3

Create Attractive Workplaces

Create Attractive Workplaces

Ensure Safety and Promote Health

Dynamic workplaces where employees can demonstrate their unique capabilities and be healthy in mind and body are essential forany enterprise seeking sustained growth. The JX Nippon Mining & Metals Group strives to create workplaces that are attractivefrom many perspectives. Examples include our work to ensure occupational health and safety, provide an appropriate personnel
evaluation system, and offer human resources training.
Ensure Safety andPromote Health

Promote Diversity

Recognizing that the safety and health of its employees is the foundation for sustainable growth, the JX Nippon Mining & Metals
Group is committed to creating a workplace environment that ensures safety and promotes health.

JX Nippon Mining & Metals Basic Policy on Health and Safety

Human Resource
Developments

We place the highest priority on ensuring the health and safety of people working in all areas of business operations at the JX Nippon
Mining & Metals Group and create attractive workplaces by providing safe, secure, and healthy working environments.
1. We will comply with all laws and regulations relating to health and safety, establish voluntary standards required to achieve compliance, andrigorously manage and adhere to such standards.
2. We will strive to continuously improve and enhance industrial health and safety management systems and achieve health and safety goals.
3. We will actively provide information and education in order to develop human resources that think and act spontaneously, and raise health andsafety awareness throughout the organization.
4. We will identify hazards in all areas of business operations, work to eliminate such hazards and reduce risk, steadily achieve annual accident

P78

P82

KPIs and Progress

reduction targets, and ultimately aim to ensure no accidents ever occur.

P85

5. We will work to maintain and improve employees’ mental and physical health by ensuring good communication and comfortable working

Assessment:

KPI

Achieved/Steady Progress

Fiscal 2021 Results/Progress

Reduce serious
occupational accidents:
Less than 0.7 accidents(four days or more oflost work time) per
1,000 workers in fiscal
2021

The occupational injury rate per 1,000 Employees in fiscal 2021 was 1.71.
With solemn consideration for the accidents that have occurred, we constantly strive
to improve our health and safety management system and prevent occupational
accidents by improving the effectiveness of our risk assessments and enhancing theability of employees to investigate the causes of accidents.

Increase annual leave
utilization rate: 80% ormore in fiscal 2021

Thanks to our ongoing efforts to create a work environment that encourages
employees to take vacation days and to provide more days where employees areencouraged to take leave, the annual leave utilization rate improved versus theprevious fiscal year, although it only reached 77.9%. Moving forward, we will continue
to take actions to encourage employees to take more vacation.

Implement initiatives torevitalize people andorganizations

We enhanced a variety of measures for Activity-Based Working (ABW) and vitalizing
communications. In addition, we took action to build an environment in which
diverse human resources can play an active role through securing and utilizing highly
specialized and senior citizen talent, as well as introducing a new personnel system.

Initiatives for healthpromotion: Cancer
screenings for 70% of
employees or more infiscal 2021

Each operating site formulated measures to increase the screening rate and held
seminars on cancer prevention by medical specialists. These and other efforts tailoredto their respective environments resulted in a 63.1% screening rate, a significant
improvement from the previous year (54.7%). For fiscal 2022, we are promoting
activities aimed at further increasing the screening rate by carrying out e-learning for all
employees, distributing leaflets recommending cancer screening, and holding cancer
prevention seminars.

Maintain and improvehiring rate for disabled
persons: 2.3% or morein fiscal 2021

In fiscal 2021, employees with disabilities comprised 2.21% of our total number of
employees. We will continue to maintain and improve the hiring rate for disabled
persons through bolstering the newly-established Cheerful Support Office in fiscal
2021. Furthermore, we will actively provide support and roll out measures for enablingdisabled persons to lead fulfilling social lives.

77 JX Nippon Mining & Metals Corporation

Not Achieved

Assessment

environments and taking steps to maintain health and prevent sickness.

Organization for Occupational Health and
Safety Management
The Group maintains health and safety committees and otherbodies at operating sites and Group companies in keeping with
the Industrial Safety and Health Act. We have also establisheda system to have discussions with workers, including those fromsubcontractors stationed permanently, within the framework of
our management system. At our head office, the Central Healthand Safety Committee meets once a year, attended by representatives (key safety managers and labor union branch committee chairs) from the divisions and operating sites. The Central
Health and Safety Standing Committee meets five times a year,
attended by standing committee members of the former (safety
managers at each division and the three officers from the Central
Labor Union). We also hold joint labor/management health andsafety visitations (once a year) and Group safety supervisors’
meetings (twice a year) to exchange information on health andsafety. In fiscal 2021, in light of the impact of the spread of
COVID-19, our basic posture was to hold hybrid in-person/
online meetings, and joint labor/management health and safety
visitations were held in person at operating sites with infection
control measures in place.
Environment and safety audits are conducted periodicallyby a team under direct supervision of the president at operatingsites directly run by the Company (including Group companies
within the sites) and major domestic Group companies. Issues
discovered in the audits are reported to the president, and also
notified to the respective operating sites. Audits were to be
conducted at 16 sites in fiscal 2021, including eight sites forwhich on-site audits were postponed in fiscal 2020 due to the
spread of COVID-19. However, due to the spread of the virus,

on-site audits were only completed at 12 of these locations,while all locations underwent document audits through online
channels. No major issues were identified. For those locations
only undergoing document audits, on-site audits are to be postponed to fiscal 2022.
We had acquired OHSAS 18001 certification at 11 of ourdomestic operating sites and two overseas operating sites, andhas been preparing for the introduction of ISO 45001 (JIS Q
45100) following the abolition of OHSAS in March 2021. Compared to ISO 45001 (JIS Q 45001), ISO 45001 (JIS Q 45100)
enables the promotion of Group-wide occupational health andsafety activities that involve more on-site workers. We are revising and creating new management documents including OHS
manuals, and are systematically converting and acquiring newcertifications, aiming to further improve health and safety levels.
In fiscal 2021, we will complete conversion at these sites. Fromfiscal 2022 onward, we will promote the introduction of this
occupational health and safety management system at moresites, with the aim of obtaining new certification at yet-uncertified
sites.

Management Policy on Health and Safetyfor 2021
The Group formulates the Management Policy on Health and
Safety each fiscal year. The goals and key policy measures are
set based on analysis of health and safety performance in theprevious year. The policy is discussed and approved by theCentral Health and Safety Committee and then promulgatedacross the Group.

Sustainability Report 2022 78

Section 3 Materiality and ESG Management
Social[Goals][Safety and Disaster Prevention Items]
1. Accidents with lost work days or worse: Zero
2. Targets for managing the number of accidents for the entire Group(1) (Shared domestic/overseas sites) Accidents without lost work days orworse: Reduction of 50% or more of the previous year’s results(2) O ccupational injury rate per 1,000 employees, domestic Group (four ormore lost workdays): 0.7 or less (5 injuries or less)
3. Fires and explosions: Zero

Materiality 3

Create Attractive Workplaces[Health and Other Items]
1. Occupational diseases: Zero
2. Rate of lost work days due to ordinary illnesses: Reduction by 10% ormore from the average in the previous three years
3. Statutory regular health checkups: 100%
4. Cancer screening rate: 70% or more
5. Influenza vaccination rate: 100%
6. Traffic accidents (as perpetrator or victim): Reduction by 10% or morefrom the average in the previous three years

腰痛

安 全 基 本 ル ー ル 止める・呼ぶ・待つ
トラブル発生（異常）時の３原則「止める・呼ぶ・待つ」❶腰痛防止は職場で取り組む

❶『異常』
とは、
いつもと違う状態、
ルール通り仕事が出来ない状態❸台車、補助機器を利用し人力の負担を軽減する❷「止める」
は、作業を即時止める、
作業基準通り機械を
止めること
❸「呼ぶ」
は、直ちに上長等を呼ぶこと

❹「待つ」
は、
勝手に判断せずに、上司の指示を待つこと

STOP!
とめる

CALL!

STAND BY!

your manager.

for further directions.

よぶ

Don't continue working.
作業（さぎょう）をとめる

上長（じょうちょう）をよぶ

まつ❷人力で取り扱える重量を定める❹正しい作業姿勢や動作を実践する

女性*R FID (Radio frequency identification): Technology that uses radio waves or electromagnetic waves to read and write information on IC tags in a contactless manner

荷物を持ち上げる動作について

職場として人力で取り扱える重量を定める❶ 膝を曲げ腰を降ろす❷ 背筋を伸ばし❸ 呼吸を整えて腹圧を加える❹ 膝を伸ばして立ち上がる❺ 不自然な姿勢（前屈、中腰、ひねり、うっちゃり姿勢等）を避ける（例）作業者の体重が60kg程度の場合、取り扱う荷物の重量目安は、
男性

system linked to our human detection system using AI
cameras.

40% 以下 = 24kg 以下
約24% 以下 = 14.4kg 以下（男性の約60%程度）『職場における腰痛予防対策指針及び解説』（厚労省）

指示
（しじ）
をまつ

自動化や、補助機器等を使用して人力による負担を軽減「陸上貨物運送事業向け腰痛予防テキスト」
より[Key Measures]•P romoting inherent safety (strengthening activities to prevent serious
accidents from occurring)•E xpanding health and safety education•S trengthening systems for safer construction execution

連続作業時間、単位時間あたり取扱量を軽減し、適宜ストレッチを実施『止める・呼ぶ・待つ』
関連災害•M aintaining and promoting mental and physical health ontinuing to implement traffic accident prevention (including work•C
related traffic accidents)

トラブル
処置中に
手指裂傷

不休
（2020年）
故障した門扉を手動で開放時に
足指裂傷

不休（2021年）

トラブル処置中に落下したクランプで手指骨折

休業（2021年）・ いずれの災害も一旦作業を中断し、上長に報告・対処していれば防ぐことができた災害です。

製品袋引き上げ時に腰椎捻挫

不休（2020年）

・ 取扱い重量物の規定と安全な作業方法の確認！
・ 腰を十分降ろして重心を低くし、背筋を伸ばし膝を使って持ち上げる！

Actual safety awareness posters in use

Safety Education at a Safety Education
CenterIn order to raise the sensitivity to hazard for each and every
employee and enhance their safety awareness, the Group has
established the Safety Education Center, where we conduct
experience-oriented safety education, in Hitachi City, Ibaraki
Prefecture. Here, sensitivity to hazards refers to sensing danger
correctly. Sharpening this sensitivity leads to workers being able
to avoid danger.
Since many of the occupational accidents that have occurred are recurrences of past cases (similar accidents), thecenter has prepared a program to help workers see that potential accidents are always present, and to improve worker understandings of danger and their sensitivity to hazards throughsimulated experiences of past occupational accidents. In addition, we have implemented a new educational curriculum thatutilizes VR technology, enabling students to have hands-on
experience as a victim of an accident or disaster, a situation noteasily simulated in real life. In recent years, while the number ofoccupational accidents among employees has been decreasing,
the number of occupational accidents among employees from
Subcontractors has become an issue. To address this, we haveintroduced midsize education facilities at our core operatingsites to improve the sensitivity to hazards and safety awarenessof not only our Group employees but also those of our Subcontractors. The Safety Education Center and the midsize education facilities work in unison to eradicate occupational accidents
among workers.

Accident Dramatization Videos
In addition to setting up safety training facilities at each operating
site, we produce videos based on actual past accidents thatteach safety by reproducing these accidents in a visual medium.
We take opportunities such as our safety lectures to use thesematerials and raise safety awareness and sensitivity to hazards.
These videos are based on accidents that have occurred bothwithin the Group and outside the Group. They offer viewers anemotional understanding of how disastrous an accident can be
and teach the viewer what causes accidents, as well as
c o u n t e r m e a s u re s a g a i n s t t h e m , a n d t h e y f a c i l i t a t ecommunication at Group companies.

Raising Safety Awareness ThroughE-Learning
The Group strives to ensure the safety and health of all persons
connected to our business, and to elevate safety-first awarenessand sensitivity to hazards. We periodically conduct safety
training programs held via e-learning for all employees atdomestic and overseas Group companies. Training consists ofsafety basics and knowledge that people can absorb in a shorttime. In fiscal 2021, 2,865 persons, or 73% of our workforce,completed training on the topic of occupational accidents.

Producing and Displaying Safety
Awareness Posters and Digital Signage*
The Group produces safety awareness posters based on actual
accidents that have occurred in the Group and externally. These
posters are displayed mainly at manufacturing sites to raisesafety awareness and prevent the recurrence of accidents. The
posters provide at-a-glance information on key safety points,
related laws and regulations, and disaster case studies for each
topic, and are designed to bring awareness to both young andexperienced employees. We also use monitors installed in several office spaces on each floor to display digital signage forraising safety awareness among employees at the head office.

Activities in 2021 to Ensure Safety(Domestic Operating Sites)
Risk assessments
Each of the Group’s operating sites carries out its own risk assessment activities based on our occupational health and safety
management system. Risks at operating sites are managed by
implementing PDCA cycles, consisting of hazard identification,
devising accident scenarios, risk assessments, necessary measures to mitigate risk (beginning by considering tangible measures first, and then intangible measures only if tangible measures are unapplicable), and evaluation of the effectiveness of
those measures.
In fiscal 2021, we aimed to further strengthen these risk
assessment activities by focusing on significant residual risks ateach operating site and reinforcing management aspects toprevent serious occupational accidents. Improving the level ofour risk assessments is an issue that we will continue to workon in the future. Our measures going forward include visualizing
the progress of residual risk management and other risk mitigation, further promoting intrinsic safety measures that incorporate
the concept of machine safety, and training risk assessment
promoters and instructors at each operating site.
 reventing accidents involving collisions betweenP
heavy machinery and people
One of the most important safety issues for our Group is toprevent accidents involving collisions between heavy machineryand people. In order to prevent these collisions, which can easily
lead to serious accidents, we not only introduced RFID* in fiscal
2018, but, in fiscal 2021, we conducted demonstration tests
and launched operation of a human detection system using AI
cameras at Kurami Works. This system is designed to alert aforklift operator when a worker approaches the machine, andthis testing is part of our measures to implement IoT and AI. In
fiscal 2022, we will press forward with these actions even further,working with manufacturers to develop an automatic braking

Cameras installed on forklifts

Activities in 2021 to Ensure Safety(Overseas Operating Sites)
At overseas Group companies, priority issues are set for eachof the responsible divisions, and activities are implemented
accordingly.
Mineral Resources Division
In order to improve safety performance, we are continuing ourefforts to ensure compliance with safety standards and to improve safety in terms of technology and awareness. We also
provide services for workers at the Caserones Copper Mine,such as an accommodation camp, cafeteria, gym (currently
closed due to the spread of COVID-19), and a shop. Furthermore, we are taking thorough measures to prevent the spreadof COVID-19, including checking body temperature before entering the premises, antigen tests before starting work on-site,cleaning premise facilities, and ensuring social distancing in thecafeteria and on shuttle buses.

Partitions installed to stop infection from droplets at the Caserones Copper
Mine* Digital signage: Electronic display monitors

VR experiential education

79 JX Nippon Mining & Metals Corporation

Sustainability Report 2022 80

Section 3 Materiality and ESG Management
SocialFunctional Materials Division
Based on our safety activities in Japan, we are actively promoting safety activities elsewhere in accordance with the laws andframeworks of each country. Specifically, we are promoting risk
assessments focused on hazards, and we have established a
Safety Education Center tailored to the actual situation in therelevant area. These centers are based on our Safety Education
Center in Japan and are used for safety education.

Materiality 3

Create Attractive Workplaces

Tantalum and Niobium Division
Focusing on thorough compliance with rules as the fundamental
principle, we provide safety education using DVDs depicting
accident cases to prevent similar past accidents from occurring
again, strengthen safety patrols at each operating sites, andpromote activities to identify conceivable near-miss scenarios.
We also focus on reviewing risk assessments and 5S activities,
which are the basis of safety. This information is shared atmonthly safety meetings attended by representatives from each
operating site.

Health Management System Project

Experiential risk training equipment (demonstrating puncturing safety shoes)(Nippon Mining & Metals (Suzhou) Co., Ltd.)Thin Film Materials Division
In addition to focusing on activities to systematically implement
specific countermeasures through risk assessments focused on
hazards, we also focus on 5S activities, which are the basis ofsafety. In addition, some operating sites have implemented
virtual reality (VR) systems loaded with content matching actualsite conditions and used them for safety education.

We are promoting a variety of measures to improve the mental
and physical health of our employees through a project system
in which all of our operating sites participate. With regard to
improving the cancer screening rate, we engage in a range ofmessaging to employees with the aim of helping them learn
about the characteristics of cancer, strive to prevent it, and as
part of these efforts, get them to undergo screenings for early
detection. As a result, the Group-wide average screening rate
in fiscal 2021 was 63.1%, up 8.4% from the previous fiscal year.
In the future, we will also offer e-learning to further foster cancer
prevention awareness.
In addition, in order to keep all employees motivated tomaintain and improve their physical fitness, we are conducting
physical fitness tests to help them first understand their current
fitness state. Regarding mental health, we work to build anenvironment in which employees feel comfortable consultingwith industrial physicians. We do this by providing regular opportunities for employees to meet with these physicians andproviding education to responsible parties at each operatingsite.
As the underlying mechanism for these activities, we haveintroduced a health management support system that enables
centralized management of various health checkup results andworking hour records, and are also making preparations for theassignment of public health nurses to all operating sites.

VR experiential education (Nikko Metals Taiwan Co., Ltd.)

Promote Diversity
In compliance with relevant laws and regulations in Japan and overseas, the JX Nippon Mining & Metals Group is pursuing initiatives
including the continued employment of workers aged 60 and older, hiring of persons with disabilities, women’s empowerment, andhiring of non-Japanese employees. We are also developing a personnel system with consideration for sexual minority employees(LGBTQ+). Here, we are working to create an environment in which diverse employees feel fulfilled and display their abilities fully.

Measures for Diverse Work Styles
As part of our efforts to energize individuals and organizations,
we are actively working to create an environment where a diverse range of people can work with a sense of motivation. Our
efforts include the creation of an environment where people canwork fully demonstrating their capabilities even if they are pregnant, raising a child, or caring for a family member. We provide
legally mandated systems to support having and raising children, and offer our own unique systems as well. Our handbook
on the support available for employees offers tips on balancing
work with childcare or family care, provides an overview of the
public services and company systems available for their use,and describes the roles managers should play in this context.
In fiscal 2019, we also acquired the “Kurumin” certification markrelated to our action plan for raising next-generation children.
With particular respect to the success of our female employees, we formulated and followed through on a plan for the fiveyear period to fiscal 2020 in accordance with Japan’s Act on
Promotion of Women’s Participation and Advancement in the
Workplace. In fiscal 2020, the final year for this plan’s targets,
we made improvements to the working environment by expanding remote work, introducing a flextime system without mandatory core hours, and expanding the use of childcare centers. We
have formulated a new action plan for fiscal 2021 and beyond,and will focus on
creating more
opportunities for
women to play
an active role.

Remote work system
As part of our efforts to create an environment where a diverse
range of people can work with a sense of motivation, we introduced a remote work system in January 2018. During the
COVID-19 pandemic, our employees have been working fromboth home and office to ensure the safety of our business partners, local communities, employees, and their families, while
taking into account the state of the virus and requests fromgovernment agencies, etc. We have also been striving to maintain our business to fulfill our social responsibility to deliver essential products to society. Even after the COVID-19 pandemic
subsides, we will continue to utilize our remote work system sothat a wide range of diverse employees, not limited to those withcircumstances such as childcare or nursing care, can play anactive role in the Group.
Introduction of a flextime system without mandatory
core hours
In addition to the current flextime system with core hours, wehave introduced a flextime system without mandatory core
hours at the head office and for a portion of Isohara Works, withthe aim of promoting more autonomous work styles among
employees. We have also defined our flextime system as covering 5:00 a.m. to 10:00 p.m., excluding late-night hours, tocreate a system where employees can flexibly choose their work
hours.
 ecuring and utilizing highly specialized and seniorS
citizen talentWith the establishment of JX Nippon Research Institute for Technology and Strategy Co., Ltd., we introduced a flexible employment system that is not bound by the Group’s existing personnel
system, and launched efforts to secure and utilize highly specialized and senior citizen personnel. In fiscal 2021, we hired anumber of senior citizen employees with a high level of expertiseand a broad range of knowledge to launch our business.

An interview with an industrial physician

ご自身の身体の不調に耳を傾けてみませんか？

健康管理室では、社員一人一人に寄り添う面談を心がけています。

メンタル・フィジカルに関わらず、どんな些細なことでもお気軽にご相談ください。
過剰なストレスへの
対処方法

生活リズム
の整え方

メンタルヘルス
不調の相談

過労症状の相談や改善へ向けたアドバイス

食生活・運動など
生活習慣改善の
アドバイス

総合病院
への紹介

健診結果
の解説

不眠の相談と改善へ向けた
アドバイス

禁煙
サポート

会社にいつでも気軽に相談ができる医療スタッフがいる環境

81 JX Nippon Mining & Metals Corporation

Health bulletin

Sustainability Report 2022 82

Section 3 Materiality and ESG Management
SocialMateriality 3

Create Attractive Workplaces

Systems for Childbirth and Childcare
The Group provides legal standard systems related to childbirth and childcare, and offer our own unique systems as well.
PregnancyChildcareChildbirthAge 12 - 24 mo.

Age 0 - 12 mo.

Age 24 - 36 mo.

Age 36 - 48 mo. Enrollment inelementary school

JX Nippon Metals & Mining commitments
over statutory requirements

Childbirth leave

Additional JX health insurance benefit +Mutual aid association benefits

Return-to-work
grant payment

Additionalchildbirthallowance benefit

Childcare subsidy(until child enters elementary school)

Childcare concierge service and babysitter use support system

Childcare leave (until child reaches
24 months of age, if requirements are met)

Statutory requirements

Pre/post-childbirth leave

Child nursing care leave (until third year of elementary school)

Employees giving birth
are granted six weeksof leave before
childbirth, and eightweeks after

If a child is injured or becomes ill, five days/year (for one child) or 10 days/year (for two children) ofleave are granted (can be taken in half-day increments)

Childbirth lump-sum benefit

Work provisions (until enrollment in elementary school）
Employees are provided with one of the following measures: exemption from work outside of specified work
hours, exemption from late-night work, exemption from overtime work, measures to reduce working hours,
staggered working hours, etc.

Ensuring childcare time
Twice a day for 30 minutes on eachoccasion for female employees caring forchildren of up to 12 months of age (up to
18 months of age if conditions are met)
Childbirth allowancepayment
Childcare leaveallowance upport system for male employees taking childcare
S
leave
We have provided support for childcare for some time, and inrecent years the percentage of male employees taking childcare
leave has been increasing. In addition to providing presentations

about our system, we are working to spread awareness of support measures by holding panel discussions with employees
who have taken childcare leave or are balancing work with childcare in our Career Design Training that has been held since fiscal
2020.

VOICE
Comments From a System Beneficiary
Since joining my company, I have always been engaged in administration and human resources work,
but despite that I honestly was unable to imagine myself using this system. Still, in order to raise mychildren with my spouse, I have taken childcare leave and successfully returned to work twice, mostrecently for almost a year in fiscal 2021. I was able to do this with the support of the people in myworkplace. One good thing about taking leave was that I got into the habit of managing tasks better
than ever before, but most importantly, I feel that the best thing to come out of it was the sense of
camaraderie I gained with my spouse as we raised our children together.

83 JX Nippon Mining & Metals Corporation• For one family member requiring care: five days/year (can be taken in halfday increments)• For two or more family members requiring care: 10 days/year (can betaken in half-day increments)

Leave• Maximum of 93 days may be taken in up to three periods• A total of up to 730 days may be taken over the course of fourleave periods• Family care subsidy and leave allowance (financial support)• Exemption from overtime work beyond limitations (exemption fromovertime work in excess of 24 hours/month and 150 hours/year)• Exemption from late-night work (exemption from work during late night
hours except when a family member 16 years of age or older and capableof providing care lives in the same household)• At least two times in three years (measures to reduce working hours)• Application of flextime• Exemption from non-specified work

• Reduction of working hours to a minimum of two hours perday, multiple times in three years*May be extended to sixth year of elementary
school in exceptional circumstances• Exemption from overtime work
beyond limitations• Exemption from late-night work
• Exemption from non-specified work
• Measures to reduce working hours• Application of flextime system

JX Nippon Mining & Metals
Corporation
Hitachi Works, Administration
Department

Additional Benefits from JX Nippon Mining & Metals

Time Off(until third year of elementary school）

Additional childbirth
lump-sum benefit

Pregnant employees areprovided specified time
to receive healthguidance and healthcoaching: once every
four weeks before the23rd week of pregnancy,
once every two weeks
from the 24th to 35th
weeks, and once a week
after the 36th week

Statutory Requirements

Third year ofelementary school

Extension of work provisions

Three days of childbirthleave granted for male
employees whose
spouses give birth

Ensuring hospital
visit time

Systems for family care
The following programs are available if an eligible family member requires constant care.

Work
Provisions

Promoting the Hiring of employees withdisabilities
We are creating a workplace that understands and fulfills thedesire of disabled people to go out and play an active role insociety.
In the head office, we have worked to improve environments
as well as assign and train dedicated staff in order to hire not
only those with physical disabilities but also those with mental
disabilities (intellectual and developmental). As a result of these
efforts, we welcomed four new team members in January 2022
(this number has since increased to six). These team members’
main duties are internal mail reception and distribution, as well

as cleaning. Going forward, we will continue to expand theirrange of activities. The name of the team was chosen as Cheerful Support Office, selected in an open submission process from
employee suggestions. This name is designed to impart the
team’s nature as a group supporting the workplace with brightness and energy.
We will continue to actively support and develop various
measures to enable disabled persons to lead fulfilling social lives,and by welcoming people with various disabilities as colleagues,
we will enhance our corporate culture of caring and mutual
support among employees.

VOICE
Comments from a Cheerful Support Office Supervisor
Each member is working with a strong desire to be useful and active as a member of society and afriend to the Company, and the speed of their growth amazes me every day. They are able to checkeach other’s work thoroughly, confirm with their mentors what they do not understand, and proceedwith their work carefully one by one to ensure that there are no mistakes. Going forward, they areplanning to take on new challenges, including creating business cards for the entire Group, expanding their cleaning responsibilities at the head office building, and operational support requested fromvarious departments.
Our members have every potential for growth. We hope you will look out for their further successin the future. We are committed to supporting our members so that they can lead fulfilling social lives
and enjoy their work for the organization for many years to come.

JX Nippon Mining & Metals
Corporation
Administration Department

Fukuodori Naoya

Koyanagi Takuya

Sustainability Report 2022 84

Section 3 Materiality and ESG Management
SocialMateriality 3

Create Attractive Workplaces

Human Resources Development
In order to achieve becoming a technology-based company set forth in the 2040 Long-Term Vision, the JX Nippon Mining & Metals
Group is working to secure and develop human resources capable of creating added value.

Training System to Energize Individuals andOrganizations

programs to develop five key areas: managerial skills, specialist
skills, skills for global readiness, self-development, and otherskills and awareness. In addition, in order to raise awarenessand improve capabilities for each employee, we offer Career
Design Training as well as training to learn about our company’sDNA, and various other support programs.

Since fiscal 2016, our basic policy for human resources development has included the primary goal of energizing individuals
and organizations, and we have been striving for broad-based
human resource development by providing various educational

Development of managerial skills

DNA-related training
DNA Training: Training for employees in their third year to understand our DNA, cultivated from our founding to the present,
and to recognize the role they should play as leaders of change
in the future.
Education for mid-career employees: Mid-career employees
are given a tour of the Nippon Mining Museum to learn about
JX Nippon Mining & Metals’ history.

Self-Innovation Support
Employees may apply to any eligible external training program.
On completing the program, half of the expenses will be subsidized (up to 500,000 yen per program). This is a highly flexible
system because we want to address employees’ wishes for
self-development more than ever before.
Career Design Training program
In fiscal 2020, we launched our systematic career development
education. As part of this effort, we provide Career Design Training for young employees to learn how to envision their future
careers.

Managerial staff
Assistant managers
Supervisors

Training for intermediate-level managers
Program for newly promoted managers

Development of specialist skills

A DNA Training session

Operators

Development ofskills for global
readiness

Overseas study [B]
Sp
b
at

t
ro
b

jo

t

ny

pa

to

Program for
new employees

A tour of the Nippon Mining Museum

n

io

at

ific

In

ss

cla

O
ve
rs
e
tra as lin an-com ing guag
e

ng

i
rd

co

ac

Overseas study [A]Program foryoung employees

n

s

io

m

ra

og
pr

Jo

d

ize

Sh
or
t
Tr
ain t -terTO
fo in rai m
re g nin lan
ign in g g
EI
lan a s / uagCegu eco
te
ag nd
s
e

ial

ec

Coordinator training

Development ofother skills
Education on Compliance, Safety, the Environment, and ESG
and awarenessSelf-Innovation Support
Correspondence courses / Opening seminars

Selfdevelopment

VOICE
Comments from a DNA-Related Training Participant

 raining for young employees (university andT
graduate school graduates)
We provide a wide range of training programs in stages foruniversity and graduate school graduates up to five years after
they are hired, including New Employee Training for teachingbasic businessperson skills, and Fifth Year Training to help them
gradually build a vision for their career

85 JX Nippon Mining & Metals Corporation

Development of skills for internationalization
We promote education to globalize our talent so that they canplay an active role on a global scale. In our Overseas Language
Training program for second-year employees with undergraduate and graduate degrees, employees are sent to overseas
language schools for about eight weeks, not only to learn thelocal language but also to experience different cultures andvalues, and to develop flexible thinking that can be applied
globally. Although some of the training sessions in fiscal 2021
were postponed due to COVID-19, we are preparing to resume
this training.

As part of a training program for mid-career hires, we visited the Nippon Mining Museum, located on
the site of the former Hitachi Mine. Since the founding of JX Nippon Mining & Metals, the organization has a history of working together with local residents to protect the environment in keeping with
the Sustainable Development Goals. Visiting the site where we were founded, seeing up close theruins of the large smokestack and rows of cherry trees that have become a symbol of environmental
protection measures, and experiencing the many exhibits and detailed presentations in the memorial
museum, I felt that we had faced extraordinary difficulties and made great effort in our history.
There was a deep, moving sense of reverence that reassured me that our continued commitment
to “community involvement and development” and the idea of “the mine as one big family” comeswith a historical context and pride built through the accumulated desires of many people involved, including generation after generation of employees and local residents. I felt that this was the foundation
for continuing to face the difficult challenges that lie ahead.

JX Nippon Mining & Metals
Corporation
Internal Auditing Department

Sekiyama Aya

Sustainability Report 2022 86

Section 3 Materiality and ESG Management
SocialMateriality 3

Create Attractive Workplaces

ColumnAchieving an Office Worth Coming To

In June 2020, we relocated our head office to the Okura Prestige Tower (Toranomon 2-chome, Minato-ku, Tokyo). In order to transform
ourselves into a technology-based company as stated in our 2040 Long-Term Vision, it is important to create mechanisms for making
flexible organizations and people without being bound by conventional frameworks, and the purpose of this head office relocation isprecisely to realize that goal. Expanding shared space, setting up places where people can greater interact with technology, and promoting communication among employees—these are just a few examples of our goals. With these intentions in mind, a variety ofmechanisms have been set up at the new head office.

Three Concepts at the Head Office

Increase
Productivity

Increasing individual autonomy and, by extension, the productivity of the entire organization
by introducing ABW*1, using advanced ICT tools, utilizing BPO*2 services, etc.
<Openness in Discussion and Focus on our Core Work>•Layout configuration that encourages meetings and work in open, rather than confined,
spaces•Establishing the Concierge Counter*3 to create an environment in which employees canfocus on their core work
•Smartphones equipped with business applications are provided to support location-independent work styles

GreaterInteraction
withTechnology

Increasing sensitivity to new value creation by presenting the organization to visitors in a waythat exposes them to the changing environment around the organization and industry<Greater Interaction with Technology, Learning from History>•Establishing a showroom equipped with panels, videos, etc. presenting business overviews
and cutting-edge technologies, as well as hands-on exhibits that enable a more intuitive
understanding of technical characteristics, etc.
•Establishing an event space to hold study groups for employees, share past case studies,etc.
•Unified operation of the showroom and event space under the SQUARE LAB name

MoreInterpersonal
Connections

The penetration of ABW will naturally increase opportunities for employee interactions between various departments, creating the foundation for flexible response to major changes in
the organization and business format, etc. In addition, we began operating the Group Portal
Site to contribute to Group-wide optimization by fostering a sense of unity and improving
productivity not only at the head office but also among Group members, and promoting
the deployment of ICT tools such as digital signage, electronic approval, and business cardmanagement systems at each operating site
<Knowing People>•Installing free coffee machines in the lounge, designing the space for people to mingle andinteract during the 50-second wait for the beans to be ground and brewed, creating natural
greetings and small talk•Introducing the Choinomi*4 free drink system to promote cross-departmental interaction

VOICE
Comments from an Administration Staffer
With our relocation in 2020, we have made significant changes to our office. At the beginning of therelocation, many employees expressed confusion about the new working style and facilities, but
through the support of our concierge counter teammates, they became accustomed to the newenvironment and found it easier to work there than ever before. Two years after the relocation, officeimprovement efforts are still ongoing on a daily basis. Especially with regard to facilities, we havereflected employee opinions and social changes, installing private booths, adding decorative plants,
and revising the layout. The office as it is today is not in its final form, and we will continue to make
improvements in order to create an office worth coming to.

JX Nippon Mining & Metals
Corporation
Administration Department

Yumoto Teppei*1 Activity-Based Working (ABW): A way of working that eliminates fixed seating and allows workers to choose where they work based on the nature of their work
*2 B usiness Process Outsourcing (BPO): Outsourcing office-related operations (high-volume printing, equipment management, systems consultation, travel arrangements, external
warehouse management, etc.) to outside vendors*3 Concierge Counter: A place with BPOs always on hand to help employees deal with any difficulties they may have
*4 Choinomi: A program offering a free drink, including alcohol, for groups of two or more employees after 3:00 p.m. (after working hours) to stimulate communication

87 JX Nippon Mining & Metals Corporation

Sustainability Report 2022 88

Section 3 Materiality and ESG Management
SocialMateriality 4

Materiality 4

Respect Human Rights

Respect Human Rights

JX Nippon Mining & Metals Group Basic Policy on Procurement (excerpt)

The JX Nippon Mining & Metals Group sees maintaining sound business practices while respecting the human rights of local
residents, customers, employees, business partners and all others involved in the supply chain as a major premise for ourcontinued operation. Based on this belief, we aim to conduct our business with due consideration for human rights, using
opportunities like briefings and interviews, and to create a corporate climate where human rights are respected.

4. Follow the below principles regarding conflict minerals· Do not engage in raw materials procurement that contributes to illegal activities in conflict-affected regions or to human rights violations resulting
from such activities.
· Respect the guidance of the Organisation for Economic Co-operation and Development (OECD) related to raw materials procurement fromconflict-affected areas, and control supply chains in an appropriate manner.

Policy for Selecting Procurement Partners
Respect Human Rights
Principles

Human Rights Education
and Internal AwarenessRaising

P89

P93

KPIs and Progress

Assessment:

Achieved / Steady Progress

KPI

Fiscal 2021 Results/Progress

Percentage of
employees taking
human rights training(100% in fiscal 2021)

In addition to stipulating respect for human rights in the Group Code of Conductand other internal rules, we continue to carry out human rights training ande-learning programs at Group companies to raise awareness of human rights andprevent human rights violations. In fiscal 2021, 100% of officers and employees
participated in our ongoing human rights training programs.

Conduct survey ofhuman rights in supply
chainsWe have established and operate a supply chain due diligence management
system in accordance with OECD guidance for procurement of raw materials. In
fiscal 2021, we underwent external audits related to gold, silver, and tantalum, as
well as new external audits for platinum and palladium. These audits determinedthat we were taking appropriate action. We also conducted a CSR Questionnaireof suppliers at the Caserones Copper Mine in Chile.

Not Achieved

Assessment

Respect Human Rights Principles
The Group is committed to advancing human rights due diligence and addressing human rights issues in accordance with internationallyrecognized guidance and the fundamental principles of the International Council on Mining and Metals (ICMM), and in keeping with theintent of the RBA Code of Conduct.

Initiatives for Human Rights in the Supply
Chain
In accordance with the Basic Policy on Procurement, the Group
conducts checks with its suppliers about issues such as ensuring worker rights, the presence of discrimination in hiring andwork, forced labor and child labor, and compliance with prohibition against purchasing conflict minerals. In addition, fromfiscal 2019, we launched the CSR Purchasing Questionnaire

89 JX Nippon Mining & Metals Corporation

Surveys to ensure that our entire supply chain practices respectfor human rights, occupational health and safety, compliance,
environmental conservation, and other initiatives to fulfill oursocial responsibilities.
In fiscal 2021, we conducted a CSR Procurement Questionnaire for 17 overseas suppliers. We provide feedback to our
suppliers based on the results of this survey, taking care toprevent infringements of human rights in our supply chain.

In the conduct of the JX Nippon Mining & Metals Group’s business operations, it is necessary for not only the Group but also our business
partners’ supply chains to fulfill their responsibility to society. Therefore, we also require our business partners to operate in accordancewith the items below. Going forward, we will confirm the process of improvement with respect to business partners who violate the items
below and receive an adverse disposition from the government, and business partners revealed not to be complying with the items below.
Furthermore, in the case that a business partner is not complying with the items below, we will consider whether it is necessary to review(or cancel) the contract with the business partner.
1. Comply with laws, regulations, and social norms, such as those below, and place priority on human rights and environmental impact. In theevent of any inconsistencies between internationally-recognized human rights principles and the laws, regulations, social norms, etc., respect
the international human rights principles.
· Obey laws and regulations related to manufacturing and sales, etc.
· Abide by laws and regulations related to safety and health and develop a proper labor environment· Prohibit discrimination based on race, gender, etc. and respect the human rights, personality, and individuality of employees· Prohibit bribery and other unfair conduct· Preclude all relations with “antisocial forces” (the term used to refer to organized crime groups in Japan)· Comply with labor-related laws and regulations· Prohibit child labor and forced labor· Comply with environmental laws and regulations· Do not engage in conflict minerals procurement or use that contributes to inhumane acts
2. Engage in sound and fair business management.
3. Based on the JX Nippon Mining & Metals Group’s Green Purchasing Guideline, build environmental management systems and properly
manage specified chemical substances.
4. Offer stable supply capacity and satisfy the quality, price, delivery, and service requirements of the JX Nippon Mining & Metals Group.
5. Possess technological capabilities that meet the requirements of the JX Nippon Mining & Metals Group.

Underwent VAP Audit by RBA*
In order to appropriately address increasing corporate social
responsibility and demands from client companies, the Groupis actively pursuing initiatives in line with international standards.
In fiscal 2019, the RBA’s Validated Audit Process (VAP) audit
was conducted at the Chigasaki Plant of Toho Titanium Co.,
Ltd. and at the Mito Plant of TANIOBIS Japan Co., Ltd. It wasalso conducted at Isohara Works in fiscal 2020.
The RBA VAP audit is an assessment of maintenance andcompliance with standards and management systems related
to labor, safety, health, environment, and ethics, in accordancewith the RBA Code of Conduct. This audit’s assessment resulted in acquiring Platinum status, the highest in the RBA certification program, for Isohara Works and the Chigasaki Plant of
Toho Titanium Co., Ltd. Going forward, we will explore expanding the number of sites subject to audits and, by undergoingaudits and implementing PDCA (Plan-Do-Check-Act) cycles tocontinuously improve our performance, we will contribute to therealization of a sustainable society throughout the global supply
chain.

* Responsible Business Alliance (RBA)
A business alliance created with the goal of realizing responsible behavior in theelectronics industry supply chain. This organization establishes standards to ensure
safe working environments, dignity and respect in worker treatment, and responsible
business activities vis-a-vis the environment.

Isohara Works

Chigasaki Plant of Toho
Titanium Co., Ltd.

Mito Plant of TANIOBISJapan Co., Ltd.

RBA-issued VAP audit certificates(Left) Isohara Works, (Right) Chigasaki Plant of Toho Titanium Co., Ltd.

Sustainability Report 2022 90

Section 3 Materiality and ESG Management
SocialBegan Procedures to Obtain Copper Mark*
Certification
In March 2022, JX Metals Smelting Co., Ltd. began procedures
to obtain Copper Mark certification for its Saganoseki Smelter& Refinery and Hitachi Works. Both sites play a role in producing
raw materials used in our advanced materials, which are indispensable for the development of society. They are also promoting Green Hybrid Smelting that boasts an even higher ratio ofrecycled raw materials and introduction of CO2-free electricity
to reduce energy consumption and make effective use of resources. With the acquisition of Copper Mark certification, we
will further promote initiatives related to responsible production
at both sites.
* Copper MarkA framework established by the International Copper Association (ICA) in 2019 todemonstrate the copper industry’s contribution to responsible production and theSDGs created by the United Nations. Copper Mark certification is based on an
independent, third-party assessment of compliance with environmental, humanrights, community, and governance standards. Evaluations are conducted by anindependent third-party organization, and after certification, an evaluation of thetarget’s achievements is conducted every three years.

Materiality 4

Respect Human Rights

ingots produced at the Saganoseki Smelter & Refinery of JX
Metal Smelting Co., Ltd. and silver ingots produced at the Company’s Hitachi Works on its Good Delivery List. At the same time,they have been included on the RMAP Conformant Smelters list
for gold compiled by the RBA and GeSI*—recognition that they
are taking proper measures to exclude conflict minerals.
* GeSI: Global e-Sustainability Initiative
A global trade association of information and communications businesses focusedon achieving digital sustainability

Initiatives for Local Residents

White Logistics Activities

Development and operation of mines can have a particularly
significant impact on the surrounding environment. It is therefore
essential to pay due consideration to the human rights of local
residents. SCM Minera Lumina Copper Chile, the operator of
the Caserones Copper Mine, applies a basic three-point policy
for supporting local communities: respect for the lifestyles of
local residents, protection of the community and environment,
and respect for applicable laws. In keeping with this policy, since
the launch of this project in 2007, the operator has held briefingsand engaged in dialogue with the Collas, indigenous people
living in the area around the mine site, endeavoring to build trust.
As in earlier years, we found no violations of the rights of local
residents in fiscal 2021.

At the end of April 2020, we announced our participation in the
White Logistics movement launched by the Japanese government. We are promoting activities to resolve various issues
based on our voluntary declaration of support for this movement. For example, in contracts with logistics providers, we arepromoting appropriate action for contract reviews, such as
separating driving from ancillary work, studying and introducing
fuel surcharges, and reaffirming compliance with labor-related
laws and regulations and trucking business-related laws andregulations.

Activities

LBMA and LPPM-issued external audit
certificates

Confronting the Problem of Conflict
Minerals“Conflict minerals” is the general term for minerals that are mined(illegally, in most cases) in conflict-affected regions, providing asource of funds for local armed groups. The use of these minerals may lead to increasing human rights abuses and inhumaneacts. In response to the international trend for stronger information disclosure and monitoring by stakeholders, industry organizations relevant to the Group (including the LBMA*1, LPPM*2,
and RBA) have established monitoring programs for eliminating
conflict minerals, and require each business operator to undergo
investigations and external audits.
*1 London Bullion Market Association (LBMA)
An industry association composed of financial institutions and others that deal ingold and silver ingot. Inclusion on this association’s Good Delivery List is viewed asa guarantee of high quality and reliability.
*2 London Platinum and Palladium Market (LPPM)
An industry association composed of financial institutions and others that deal inplatinum and palladium ingot. Inclusion on this association’s Good Delivery List isviewed as a guarantee of high quality and reliability.

Initiatives in the Gold, Silver, Platinum, and Palladium
Supply Chains
JX Metal Smelting Co., Ltd., as a producer of gold, silver, platinum, and palladium ingots, has established and operates amanagement system for supply chain due diligence that calls
confirmation of the origin of raw materials, risk assessments,
and confirmation of distribution routes. Operational status isreported to the LBMA and LPPM after undergoing an external
audit by a third-party organization designated by the association. As a result of these processes, the LBMA has included gold

91 JX Nippon Mining & Metals Corporation

Activity Content in our Voluntary Declaration of Support

1

Making suggestions and cooperating in logistics improvements

2

Separating driving from ancillary work

3

Studying modal shifts for CO2 reduction

4

Establishing fuel surcharge agreements

5

Briefing session for residents

Incorporating legal compliance considerations when selecting
contracting parties

6

Taking safety measures during loading and unloading

7

Cancelling/suspending service during abnormal weather, etc.

Initiatives for the Tantalum Supply Chain
TANIOBIS GmbH, a producer of tantalum powder, implements
a strict program of purchasing checks based on international
standards for procuring raw materials from conflict-affected andhigh-risk areas. For example, it purchases materials guaranteedby the ITSCI* to have no involvement in infringements of humanrights, and it conducts supply chain due diligence. As a resultof these efforts, TANIOBIS has been included in the RMAP
Conformant Smelters list in recognition of its appropriate measures taken to exclude conflict minerals.
In addition, as of fiscal 2019, TANIOBIS began use of a
supply chain due diligence system similar to the ITSCI, by meansof the Better Sourcing Program (BSP) provided by the RCS
Global Group, an international auditing organization for the raw
materials supply chain.

TOPICS
Reinforced Sulfuric Acid Transportation in Hokkaido
In August 2021, we acquired a 34% stake in Hokuho Unyu Co., Ltd. (Tomakomai City, Hokkaido), a liquid transportation company and wholly-owned
subsidiary of Maruwn Corporation. Hokuho Unyu is responsible for the transportation of sulfuric acid handled by the JX Group in the Hokkaido region, and we intend to further strengthen our transportation infrastructure through this investment.
In the copper smelting process, our Group produces sulfuric acid from the sulfur contained in copper concentrates. Sulfuric acid is used in awide range of fields, including industrial and agricultural applications.

* ITRI Tin Supply Chain Initiative (ITSCI)
An initiative by the International Tin Research Institute (ITRI), a global industry groupfor tin. Based on OECD Due Diligence Guidance, it works to enable due diligencefrom mines to smelters, and to encourage procurement from mines in conflict-affected areas that is free of involvement with local armed groups.

Sustainability Report 2022 92

Section 3 Materiality and ESG Management
SocialMateriality 5

Coexistence and Co-Prosperity With Local Communities

Human Rights Education and Internal Awareness Raising
The Group provides and makes known guidelines on human rights issues including discrimination, harassment, forced labor, and childlabor, for the prevention of these issues. We also create opportunities for periodic training to ensure retention of human rights awareness.

JX Nippon Mining & Metals Group Compliance Regulation (excerpt)
Prohibition of unjust discrimination
JX Nippon Mining & Metals Group companies and their officers and employees shall not discriminate in their business operations relating but notlimited to hiring, salary, working hours, work conditions, and business terms due to reasons that include but are not limited to race, nationality, sex,age, religious belief, social status, or physical characteristics.

Coexistence and Co-Prosperity With Local
Communities

Materiality 5

Since the inception of our business at the Hitachi Mine, the JX Nippon Mining & Metals Group has emphasized the spirit ofmaintaining good relations with local communities in conducting its business. Keeping alive that spirit today, we have written
coexistence and co-prosperity with society into our Code of Conduct. We additionally set an action plan for each fiscal year andwork day to day to fulfill it.
Social Contribution
Activities

Stakeholder
Engagement

P94

P98

Prevention of harassment
JX Nippon Mining & Metals Group companies and their officers and employees shall work proactively to prevent sexual harassment (including
gender harassment) and power harassment.
Protection of personal information
JX Nippon Mining & Metals Group companies and their officers and employees shall comply with personal information protection laws, regulations,and internal rules, adequately of parties including but not limited to customers, business partners, and employees, and in situations where personal
information needs to be managed for business purposes, manage it with the utmost care.

KPIs and Progress

Prevention of child labor and forced labor
JX Nippon Mining & Metals Group companies and their officers and employees shall not be involved with child labor or forced labor and shall work
to help solve these issues.

Assessment:

KPI

Fiscal 2021 Results/Progress

We provided human rights training to all Group employees infiscal 2021, themed on harassment prevention. This theme wasestablished given the clear provisions in the JX Nippon Mining& Metals Group Compliance Regulation that we shall not engage
in discrimination or harassment, to raise employee awarenessof human rights and understanding of harassment. Based on
the concept that “anyone can be a perpetrator or a victim ofharassment,” the program provided a good opportunity for eachparticipant to gain an awareness of how harassment affects
both companies and employees, and to re-evaluate our own
words and actions, as well as our work environment. We willcontinue our work to ensure an understanding of human rights
１．ハラスメントとはconcepts in our global
business operations
and to do business inconsideration of human rights.

The Group has established the JX Nippon Mining & Metals
Group Hotline as an internal consultation service for humanrights violations and other issues. Employees are able to anonymously use this hotline to discuss any issues related to humanrights–from those that may crop up on a day-to-day basis tosignificant infringements. All reports to this hotline are presented
to the president, including a report on our response to each.
Information about the establishment of the hotline is posted on
our intranet and disseminated through various training programs, including human rights training. No one using the hotline
for consulting or reporting shall be subjected to disadvantageous treatment for its use. Eight reports were made to the
hotline in fiscal 2021.
In regard to remedies, no restrictions have been made on
resolving issues for consultation through external remedies, andtherefore consulting parties may seek other remedies according
to the legal system of the country in question.

Copyright © 2022 JX Nippon Mining & Metals Corporation, All rights reserved.

(Number of trainees x course hours)

93 JX Nippon Mining & Metals Corporation

Fiscal 2021

1,691 hours

ongoing dialogue.

Social Contribution Activities
With the goal of further strengthening relationships with local communities through social contribution activities, the JX Nippon Mining &Metals Group conducted community-based initiatives at each of our operating sites in Japan and overseas. While the impact of COVID-19
resulted in restrictions or limitations on our activities, we endeavored to create opportunities for communication with local communities,
valuing the spirit of coexistence and co-prosperity that we have pursued since our founding.

Results of Main Social Contribution Activities in Fiscal 2021
Activity

Environmental
Conservation
Activities

Location

Date

Description

Cleanup around plant
areas

Various group locations

Year-round

Cleanup activities on roads and local river basinssurrounding our plants

Participated in cleanup
activities around the
Miyata River

Hitachi Works

June and
October 2021

Participated in cleanup activities organized by a local
resident-led association for cleaning up the Miyata River.
A total of 320 people participated in two sessions

Plant tours

Various group locations

Year-round

Organized plant tours for area students (elementary,junior high, and high school), explaining plant facilities
and the nature of the work performed

Internships

Various group locations

Year-round

Internships for industrial high school, technical college,
and university students; practical training andpresentations

Held educational
programs for the hearing
impaired

SCM Minera Lumina
Copper Chile

July 2021

Held an educational program for the hearing impaired
living in the surrounding areas, helping them to obtain adriver’s license

Held the Rikochallenge(science and engineering
challenge)

Kurami Works,
Saganoseki Smelter &Refinery, JX Metals
Smelting Co., Ltd.

August 2021

Held plant tours, experiments on the characteristics ofcopper, and interactions with science and engineering
employees for junior high students ( Page 69)

1

E-learning materials

Total Hours Spent in Human
Rights E-Learning Training

Assessment

communities, building trust with stakeholders related to corporate activities throughwith local communities

Human Rights Consultation and Remedies

Not Achieved

Despite the impact of COVID-19, we endeavored to understand the needs of local

Continuing dialogue

Human Rights Education

Achieved/Steady Progress

Educational
Activities

Sustainability Report 2022 94

Section 3 Materiality and ESG Management
SocialActivity
Job skills training
Educational
Activities

Community
Development

Donations to
Local
Communities

SportsPromotion

Location
SCM Minera Lumina
Copper Chile

Materiality 5

Coexistence and Co-Prosperity With Local Communities

Date

Description

January 2022

Job skills training for residents of Tierra Amarilla in sevencourses, including nursing, caregiving, sewing, cooking,welding techniques (approximately 180 participants)

Held an event incollaboration with the
Shiba Regional City
Office in Minato City

Head OfficeFebruary 2022

Held the Getting to Know the Copper Around Us
program as a social science field trip program forelementary school students ( Page 69)

Film festival

Frankfurt Office

May 2021

Screened A Town and a Tall Chimney at Nippon
Connection, the Japanese Film Festival in Germany

Participated in Kurobe
Fair 2021

JX Nippon Mikkaichi
Recycle Co., Ltd.

September
2021

Set up an online company booth to introduce ourbusiness at a regional industrial event hosted by Kurobe
City

Covered security camera
installation costs

Saganoseki Smelter &Refinery, JX Metals
Smelting Co., Ltd.

December
2021

Covered a portion of the costs for a nearby
neighborhood association installing security cameras.
Received a letter of appreciation from Oita Prefecture

Participation in Christmas
event

SCM Minera Lumina
Copper Chile

December
2021

Distributed 3,400 Christmas gifts to children in schools
and kindergartens, as well as to senior citizen groups
and neighborhood associations in Copiapó Province

Sales event for local
craftsSCM Minera Lumina
Copper Chile

December
2021

Held a sales event for local crafts such as textiles,
leather goods, herbal products, jewelry at the Caserones
Copper Mine cafeteria

Donations to andsponsorship of local
festivals and events

Various group locations

Donated plastic bottle
caps, used stamps

Year-round

Provided donations to and sponsored local festivals,
fundraisers, fireworks displays and other events

JX Nippon Exploration
and Development Co.,
Ltd., JX Metals Trading
Co., Ltd.

Year-round

Collected and donated plastic bottle caps and usedstampsDonations to the fire
department

TANIOBIS GmbH

2021

Provided donations to the local fire department where
the plant is located. The money was used to purchaseweather sensors

Donations for train
derailment victims

Nikko Metals Taiwan
Co., Ltd.

April 2021

Provided donations to the victims of the Taroko Express
train derailment

Donations of vending
machine sales

Saganoseki Smelter &Refinery, JX Metals
Smelting Co., Ltd.

January 2022

Collaboration with Mito
HollyHockHead Office

From April
2022

Concluded an official partner agreement (Kendo Club becomes a
Corporate Sport

Head Office, etc.

From April
2022

Strengthening the activities of the Kendo Club as acorporate sport going forward

Community Development

Donations to Local Communities

Provided donations of a portion of the proceeds fromvending machines on the premises to a traffic accident
orphans relief fund. Received a letter of appreciationfrom Oita PrefectureSports Promotion

Page 72)

Activity Highlights onations to a Traffic Accident Orphans Relief Fund
D
Saganoseki Smelter & Refinery, JX Metals Smelting
Co., Ltd.
For a number of years, we have donated a portion of the proceeds from vending machines installed on the premises of theSaganoseki Smelter & Refinery to a traffic accident orphans relief
fund operated by Oita Prefecture. This relief and support fundprovides various grants to help children orphaned by traffic
accidents, in the hope that they will grow up healthy and strong.
The Saganoseki Smelter & Refinery also engages in a wide
range of traffic safety activities,
including raising awareness of
traffic safety among employees
through education and othermeans, and supporting traffic
safety promotion groups.
Through these activities, wewill continue to contribute to
Receiving a letter of appreciation from Oita
local communities.
Prefecture upport Program for People with Disabilities Near
S
Caserones
SCM Minera Lumina Copper Chile

training program for nearby residents with hearing impairments
to obtain their driver’s licenses. This training program was thefirst of its kind in northern Chile. A total of 21 people with hearing
impairments participated in the program and completed 100
hours of training.

Participants in the driver’s license training program

Contributing to Local Employment
As a global business enterprise, we believe that contributing to
the development of local economies and communities throughlocal employment plays an important role in building good relationships with local communities. The ratio of senior managers
among locally hired employees at important overseas locations
is 8.9% for men and 12.8% for women.

As part of our community contribution activities, we held a driver

TOPICS
Launched the Kendo Club as a Corporate SportIn April 2022, we designated the Kendo Club as a corporate sport in strengthening its activities. Kendo
is a sport that we have been involved in for many years since the founding of the Hitachi Mine (HitachiCity, Ibaraki Prefecture), and it continues to be an in-house club activity. In order to position this historicalkendo club as a corporate sport and to significantly strengthen the club’s activity system, we have invited Ishida Toshiya, one of the greatest kendo instructors in Japan and a kendo instructor with the highest
possible rank of hanshi 8th dan, to serve as the club’s instructor. This is aimed at building a strong teamthat can compete in the All Japan Businessman’s Kendo Championship. In addition, in order to actively
contribute to society through kendo, we have secured a dedicated kendo hall in the vicinity of our head
office as a venue for its activities, and will make effective use of it to support local sports and other activities.
Alongside strengthening the Kendo Club, we will actively promote efforts to contribute to the community and cultivate the next generation through sports, including support for community-based sports
activities.

Kendo hall completed in September
2022

VOICE
Comments from Ishida Toshiya, Kendo Club Instructor
After retiring from the National Police Academy, I struck out on a new path as instructor of the historic JX Nippon Mining & Metals Kendo Club. I strongly agree with
the Company’s policy of strengthening the Kendo Club as a corporate sport andcontributing to society through kendo. To help achieve this goal, I will do everything
in my power to bring together all parties concerned, both internally and externally,
while cherishing the bonds that are built through kendo.

Exhibition and sales event for local crafts held at acafeteria

95 JX Nippon Mining & Metals Corporation

Children enjoying their Christmas gifts

Mito HollyHock

Kendo Club Instructor

Ishida Toshiya*Pictured in the front row,fourth from the left

Sustainability Report 2022 96

Section 3 Materiality and ESG Management
SocialMateriality 5

Coexistence and Co-Prosperity With Local Communities

Activities Related to COVID-19
Activities to Protect Employees and Their
Families
We newly established a special leave system to return to Japanfor expatriates stationed at overseas bases of the Company andtheir accompanying family members, helping them to reducestress caused by the COVID-19 pandemic and to receive vaccinations in Japan. So far, a cumulative total of around 50 employees and family members have utilized this system.
Workplace vaccinations were administered up to the third
shot at the head office and several operating sites, not only toemployees and their families, but also to employees of subcontractors and neighboring companies as we expanded the scopeof this program.
The Hitachi Works donated one ultra-low temperature freezer, enabling ultra-low temperature storage of vaccines, to Hitachi
City. This freezer is used to store vaccines at a medical institution
located in the city.
Hoping that COVID-19’s spread will be brought under control as soon as possible, we will continue to engage in support
activities both internally and externally.

Stakeholder Engagement
2022, following the one in June 2021, to extend the term of thedeclaration in light of the ongoing pandemic.

In June 2020, JX Nippon Mining & Metals Corporation endorsed
the purpose of and participated in the IP Open Access Declaration Against COVID-19 to support the fight against COVID-19.
Under this declaration, companies promise to not exercise patent rights, utility model rights, design rights, or copyrights
against any entity using said rights for the purpose of ending the
spread of COVID-19. An announcement was made in May

97 JX Nippon Mining & Metals Corporation

ships of trust will lead to an increase in corporate value. To this end, we take advantage of opportunities for dialogue with each stakeholder
and engage in active two-way communications.

WEB

Participation in the IP Open Access Declaration
Against COVID-19 (Japanese only)

https://www.gckyoto.com/covid19

Donation of COVID-19 Prevention
Equipment to Local Communities (Chile)
In February 2022, SCM Minera Lumina Copper Chile, the operator of the Caserones Copper Mine, donated 2,000 simple
antigen test kits for COVID-19 to the Atacama Health Department in response to the resurgence of COVID-19 in Chile. In
response to this donation, The director of Atacama Health Service, Claudio Baeza, expressed his appreciation for the company’s continued support during the pandemic.

The ultra-low temperature freezer provided for this project and its being unloaded

Participation in the IP Open Access
Declaration Against COVID-19

The Group believes that understanding the demands of various stakeholders accurately, responding in good faith, and building relation-

COVID-19 test kits donated to Atacama Health Service

Key Stakeholders andResponsibilities

Main Means of Communication

Main Topics

Customers
We will contribute to achieving amore affluent society by improving
satisfaction and fulfilling our social
responsibilities through the stableand efficient supply of high-quality
products.

• Communication in sales activities• Dissemination of information via website andSNS• Exhibited at the 8th Highly-functional Metal
Expo• Invitation to SQUARE LAB•S table supply of highly-functional
products• Improve economic efficiency and added
value of products• Improve environmental performance of
products•A ppropriate disclosure of productinformation

Shareholders and investors
As a major operating company of
the ENEOS Group, we will strive
to disclose information in a timely
and appropriate mannaer through
ENEOS Holdings, a listedcompany.

• Publication of Sustainability Report• Disclosure of information on website• IR news email distribution• General meeting of shareholders, financial
results briefing, business office information• Stable profit return•E asy-to-understand information
disclosure on management strategies• Full disclosure of ESG information

Employees
We will promote the creation of arewarding workplace, focusing on
the improvement of the work
environment and theenhancement of training systems.
And we will strive to improve themotivation of each individual.

• Publication of the group newsletter Cuprum• Preparation and distribution of the ESG
Handbook and the Handbook for Supporting
Balancing Childcare or Nursing Care
• Implementation of self-assessment system• Hold online workshops• Dialogue between labor unions andmanagement• Prevention of occupational accidents• Creation of diverse work styles• Penetration of Group ESG activities• Achieving diverse work styles• Enhancement of training system• Fair and equitable personnel evaluation•M aintaining and promoting mental andphysical healthBusiness partners
We will conduct business with ourpartners built on relationships oftrust. We are working to achieve
fair and equitable transactions
throughout the supply chain.

• Communication through purchasing activities(CSR Procurement Questionnaire)• Operation of an inquiry desk
• Conducting surveys with business partners• Invitation to SQUARE LAB• Equal and fair trade• Management of occupational safety

Local communities
We will pursue coexistence andco-prosperity at each of ourbases by creating understandingof our business and building
cooperative relationships throughvarious exchange opportunities.

• Creation of cooperation agreements with
universities and establishment of joint
research courses• Conducting factory tours, office tours, andvisiting classes• Participation in and sponsorship ofcommunity events• Conduct briefings for local residents• Participation in local volunteer activities• Strengthening cooperation with local
communities for their revitalization• Cultivation of a new generation andeducational support• Reduce the environmental impact of theregionInternational community
We pay close attention to trends
in global warming and otherinternational issues. We engage
with issues proactively andcomply with laws and regulations.

• Implement business practices that support
the SDGs• Engage in activities as an ICMM member
company• Agreement with and support for EITI• Response to TCFD / Endorsement of
Challenge Zero / Response to CDP /Participation in WIPO GREEN / Response to
the RBA Code of Conduct•E stablishment of a resource-recycling
society limate change adaptation and•Cmitigation• Progress in the Digital Society

Sustainability Report 2022 98

Section 3 Materiality and ESG Management

Materiality 6

Strengthen GovernanceCorporate Governance
The Group is working to strengthen its governance structure in order to have a firm grasp on rapidly changing business environments, toaccelerate decision-making and business execution, and to achieve fair and highly transparent management.

Corporate Governance Structure
ENEOS Holdings
Discussions, reports, etc.

JX Nippon Mining &Metals Group

Business management, etc.

General Meeting of Shareholders
Election and dismissal

Election and dismissal

Directors/Board of Directors
Discussion and report ofimportant matters

GovernanceMateriality 6

Executionof operation

Auditors

Independent
Auditors

Cooperation
Audit

Internal Auditing
Department
Internal audit
Accounting audit
JX Nippon Mining & Metals

Rigorous Compliance

Risk Management

Quality Control in the
Supply Chain

P100

P101

P103

P106

Achieved/Steady Progress

Fiscal 2021 Results/Progress

Steady operation ofEnterprise Risk
Management (ERM)

The Group bases its activities in ERM concepts with reference to ISO 31000, a setof guidelines for risk management methods. In fiscal 2021, an external organization
evaluated the ERM system and the status of its operations, and improvements were
implemented to address the issues that were identified.

Compliance training
tailored to businesscharacteristics andsocial movements, etc.

The Group conducts compliance training every year to increase awareness andknowledge of compliance among executives and other employees. In fiscal 2021, in
addition to annual the rank-specific compliance training, which is conducted every
year, we held training programs in Japan and overseas regarding harassment andthe Subcontract Act, tailored to business characteristics and social trends, andother factors.

99 JX Nippon Mining & Metals Corporation

Compliance Committee
Safety and Environment
Committee
Human Resource Council

Discussions, reports, etc.

Corporate Governance

KPI

ESG Committee

President
Executive Officers/
Executive Council

Business management, etc.

Group companies

It is essential for companies to gain and maintain stakeholder trust to conduct business and increase long-term corporate value ina drastically changing society. The Group promotes strict compliance with laws and risk management to increase the soundness
and transparency of management and reinforce governance.

Assessment:

Audit

Technology Council

Strengthen Governance

KPIs and Progress

Election and dismissal

Election anddismissal

Board of Directors
The Board of Directors was established to discuss mattersspecified by laws, regulations, and the Articles of Incorporation,
as well as other important management issues. The Board of
Directors is composed of the president and seven directors (asof June 2022) (six male directors, one female director). Auditors
can also attend the meeting and express their opinions. In accordance with laws, regulations, and the rules of the Board of
Directors, transactions involving conflicts of interest between
directors and the Company are subject to approval by the Boardof Directors.

Not Achieved

Assessment

Executive Officer Compensation System
Company compensation for the executives consists of fixedmonthly compensation based on the relevant individual’s role,and variable performance-based bonus payments. The bonus
is determined by the consolidated business results of the Company as well as ENEOS Holdings. The Company does not havean executive officer retirement benefit program. The sharebased payment system was implemented in July 2017. The
share-based payment system applies the Board Incentive Plan
(BIP) to Board Members, etc. to provide ENEOS Holdings
shares according to individual role and performance as part ofthe incentives program.

Executive Council
As an advisory organ to the president, the Executive Council
was established to discuss important matters regarding company management and to report the state of business execution.
The Executive Council is composed of the president and executive officers designated by the President. Full-time Auditors canalso attend the council meeting and express their opinions.

Auditors
Auditors attend Board of Directors meetings, Executive Council
meetings and other important meetings of the Company toexpress their opinions as needed to increase the effectivenessof audits. In addition, auditors endeavor to understand the stateof business execution by individual executives of the Company
and the Group companies, through interviews, and through theinspection of documents. Furthermore, auditors also receive
periodic reports on audit plans, progress, and results from theInternal Auditing Department and the accounting auditor while
enhancing cooperation through the exchange of information andopinions.

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Section 3 Materiality and ESG Management
GovernanceOutside Director
With the recent growing calls from society to strength governance and internal controls, we appointed new outside directors
in both April and June of 2022 in order to incorporate new perspectives in judgement and new stimuli. As well as provide anexternal oversight function. As of June 2022, three out of sevendirectors are outside directors.
Management of Group Companies
Each Group company is placed under the jurisdiction of theappropriate operating or corporate department of the Company
based on its business line, and the execution of its operations
is managed and supervised by that department. Important matters regarding the business management of individual Group
companies are reported to the Company through the relevantsupervising departments. If necessary, they are also reported or
discussed at the Executive Council and other important
meetings.

Internal Control System
The Group has established the Basic Policy for Establishment
and Operation of Internal Control Systems and based on thispolicy, the Group has established internal control systems toensure the efficiency and appropriateness of its operations. In
addition to receiving reports on the status of internal control

Materiality 6

Strengthen Governanceactivities from each division of the Company, we conducted asurvey of the status of development and operation of internal
control systems at major Group companies. The status of thedevelopment and operation of internal control systems is, inprinciple, monitored once a year by the Executive Council. While
taking into consideration the business characteristics of eachcompany, we are continuously improving internal control systems for the Group as a whole.

Internal Audit
We conduct internal audits across the entire JX Nippon Mining& Metals Group to investigate, discuss, and assess the state ofbusiness administration, operations, and asset preservationfrom the standpoints of legality, efficiency, and effectiveness. The
Internal Auditing Department is in charge of these functions.
The Internal Auditing Department establishes a medium-term policy at three-year intervals and drafts auditing plansfor each fiscal year to ensure systematic internal audits. Internal
audits of Group companies are conducted in collaboration andcooperation with auditors dispatched from the Company. Basedon the results of these audits, proposals for necessary improvements are made, with progress tracked for corresponding actions. Audit results and findings are reported to the president of
JX Nippon Mining & Metals, to the relevant Group company,
and, as necessary, to the Executive Council.

Rigorous Compliance
The JX Nippon Mining & Metals Group Code of Conduct and the JX Nippon Mining & Metals Group Compliance Regulations definecompliance as not only observing domestic and foreign laws, rules, and regulations, but also acting in line with social norms andcorporate ethics. We conduct our corporate activities with an emphasis on compliance. Based on the belief that thorough compliance is aprerequisite, the Group, as a member of the community, continues to create value in response to the expectations of its diverse
stakeholders, and we have established various internal regulations concerning compliance. At the same time, we have establishedCompliance Priority Targets for each fiscal year and monitor the real-time status of their implementation. If any issues are identified in thesystem or in operations, we make improvements as we continue various efforts that will enable us to remain a trusted corporate group.

Compliance Promotion Structure
Measures related to compliance in the Group are determined atCompliance Committee meetings (twice yearly in principle). The
Committee consists of executives from the Company and othermajor Group companies in and outside Japan. In response toreports on the state of compliance provided by individual de-

101 JX Nippon Mining & Metals Corporation

partments of the Company and Group companies, the Compliance Committee evaluates the risk of fraudulent acts, legal violations, and other misconduct related to business operations,and reflects the results in setting priority issues and formulating
education plans.

Whistleblower Program
To increase reliability, we have outsourced the Group’s whistleblower program to an external organization. This externalorganization is responsible for accepting anonymous reports
from whistleblowers. We have also taken a wide range of measures to increase awareness of the program throughout theGroup. Such measures include displaying posters at individualGroup company sites to publicize the program, posting articles
in pocket editions of the Group Philosophy, which is distributed
to all employees, opening a special section on the Company
intranet, and introducing the program during compliance education sessions. In fiscal 2021, we received several reports
through the program and took necessary measures in all instances in accordance with the relevant rules and regulations
while taking due care to protect whistleblowers.

Handling Anti-Social Forces and Bribery
Prevention
The Group has established a system for eliminating anti-social
forces based on the JX Nippon Mining & Metals Group Regulations for Dealing with Anti-social Forces and the JX Nippon
Mining & Metals Group Detailed Rules for Dealing with Anti-social Forces in order to cut off any relationship with anti-social
forces. This system includes periodically conducting specified
investigations of business partners and their related parties, andtaking contractual measures in advance to terminate business
relationships, depending on the circumstances. In order to prevent violations or suspected violations of anti-bribery laws andregulations by Group company executives and employees, wehave established an anti-bribery system founded on the JX
Nippon Mining & Metals Group Anti-Bribery Regulation. Thissystem includes the requirement of a prescribed set of checks
when providing entertainment, gifts, etc. to a public official orsimilar person, and approval from a responsible party whencertain conditions are met. In fiscal 2021, we continued to checkapplication based on the regulations, and confirmed that thesewere generally being applied properly. (There were no adverse
dispositions issued by regulators in regard to bribery.)

Program for Compliance with Competition
Laws
The Group has established the Program for Compliance with
Competition Laws, which includes rules such as those requiring
all employees to report in advance planned transactions orgatherings with competitors to confirm that that they do not
violate competition laws, requiring individual managers to submit
periodic reports to the head office, and so on. In fiscal 2021, we
continued to check application based on the aforementioned
program, and confirmed that these were generally being applied
properly. (There were no adverse dispositions issued by regulators in regard to anti-competitive behavior.)

Complete Inspections for Compliance With
Environment and Safety Laws
We conducted complete inspections for compliance with environment and safety laws at 2 Group sites in fiscal 2021. We
confirmed that environment-related and occupational health andsafety-related laws were thoroughly understood by employees
at all Group company sites and no serious lack of understanding
was observed. All sites are also responding appropriately tomatters requiring improvement.

Inspections for Compliance With Labor
Laws
We conducted inspections for compliance with personnel andlabor laws at eight Group sites in fiscal 2021 and confirmed thatthey were properly managed.

Compliance Education
The Group facilitates the fulfillment of compliance education toincrease awareness and knowledge of compliance among executives and other employees, and conducts a variety of compliance and legal training sessions in Japan and, overseas basedon business characteristics and social trends.
In fiscal 2021, in addition to annual rank-specific compliancetraining (for directors, managers, new employees, etc.) that is
conducted every year, training sessions on internal controls,
security trade controls, harassment, the Subcontract Act,
Stamp Tax Act, etc. were conducted as theme-specific legal
and regulatory education sessions. At overseas bases, we conducted education for expatriates at the headquarters or thebases, taking into account business characteristics and social
trends, etc. In Germany and China, lectures on the Group’s
compliance system and explanations of important laws andregulations, such as those dealing with competition law compliance and anti-bribery, were presented mainly to national staff
managers by lawyers, legal staff, and other instructors. It wasan opportunity for participants to deepen their understanding ofcompliance.
Going forward we plan
to continue to studying andimplementing compliancetraining programs in Japanand overseas, based ontrends in legal revisions, regional characteristics, andother factors.
Compliance training for executives by
Kubori Hideaki, attorney at law, Hibiya Park
Law Office (Headquarters)

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Section 3 Materiality and ESG Management
GovernanceMateriality 6

Strengthen GovernanceTax GovernanceProtection of Intellectual Property

The JX Nippon Mining & Metals Group recognizes that the proper fulfillment of tax obligations in the countries and regions wherea company does business is one of the most important social
responsibilities that it should fulfill. Based on this, we are fostering awareness of tax compliance and working to maintain our
tax governance system in accordance with the ENEOS GroupTax Matters Policy.

The Group recognizes that intellectual property rights are important company assets and strives to protect and utilize suchrights. In addition, the JX Nippon Mining & Metals Group Basic
Procurement Policy clearly states that we respect the intellectual
property rights of other companies and endeavor to not infringeon them. In researching and developing new products andtechnologies, we conduct preliminary investigations to ensurethat our products do not infringe on intellectual property rights.

ENEOS Group Tax Matters Policy (Excerpt)
1. Basic Approach	Companies have a social responsibility to appropriately honor their tax obligations in the countries and areas where they conduct their businessactivities.
2. Compliance with Applicable Laws and Regulations
We comply with the relevant tax laws and regulations in the countries and areas in which we conduct our business activities.
	We conduct our business activities in accordance with the purposes of the rules regarding international tax matters (such as the OECD Transfer Pricing
Guidelines for Multinational Enterprises and Tax Administrations and the Base Erosion and Profit Shifting Project).
3. Fostering Awareness of Tax Compliance	Through continuous training concerning tax matters and other relevant training, we make efforts to maintain and improve our awareness of tax
compliance.
4. Optimization of Tax Costs	By using the Advance Pricing Arrangement and other relevant systems, we attempt to obtain agreement with tax authorities, and make efforts to
reduce risks and optimize costs.
5. Establishment of Relationships of Trust with Tax Authorities	At the request of tax authorities, we timely and properly provide them with necessary information.

cil. These important risks include risks related to business continuity and sustainability, such as climate change and risks related to human rights. The organization responsible for material
risks takes the lead in responding to these risks. In addition, theExecutive Council monitors the status of these actions.
In fiscal 2021, in order to strengthen our risk management
initiative, an external organization conducted an evaluation of

our ERM framework and its operational status. We have also
made improvements in response to the issues identified. We willcontinue to take risk management initiatives as we operate
PDCA cycles within this mechanism. In this process, we will
evaluate the appropriateness and adequacy of our risk management system, identify issues, and make continuous
improvements.

1. Management Risks
Risks that may hinder the achievement of the Group’s management goals are selected by consensus from the General Managers of corporate
departments.
2. Business Risks
Each department or Group company selects risks that may affect the achievement of goals related to the execution of business by the respective
organization. Each organization appoints Risk Management Promotion Managers and Risk Management Promoters, with the goal of promoting thepenetration of risk management activities within each organization.

Risk Management Structure
Executive Council
Approval/Instruction

Discussion/Report

Risk Management Office
Support/Monitoring

ReportMaterial risks
The organization responsible
for material risks

Management Risks

Hearing

Management Risks• Management and employees will participate in risk management initiatives.

Management Risks
Support/Monitoring

ReportDesignation of Material risks
by the General Managers ofCorporate Departments

Risk Management
We identify, analyze, and assess various risks surrounding our business based on future projections and changes in the internal andexternal environment, and implement measures such as reducing, transferring, and retaking these risks. In addition, by monitoring thesituation, we promote risk management in accordance with the following principles with the goal of appropriately managing risks andsupporting the management of the Group.

Support/Monitoring

Risk Management Promotion Managers
Risk Management Promoters

ReportInstruction/
Support/Monitoring

Stakeholder Departments/
Group Companies for Material risks

Business Risks

ReportStakeholder Departments/
Group Companies
for Management Risks• Recognize risks linked to business goals and promote them as an organization-wide activity.

Instruction/
Support/Monitoring

ReportOrganizations
Domestic/Overseas Sites
Group Companies
Under Jurisdiction• Respond flexibly to risks, taking into account the organization’s purpose, mission, and goals, as well as internal and external conditions.
• Continuous improvement based on information from stakeholders and evaluation of the effectiveness of risk management efforts.

Risk Management Promotion System

Status of Risk Management Initiatives

At the Group, we select Material risks, approve response plansfor each material risk, and monitor these plans, all with the approval of the JX Nippon Metals & Mining Executive Council. In
addition, the Risk Management Office in the Company’s Administration Department is responsible for the overall risk management for both the Company and Group, handling ERM.

Risk is defined as “any uncertainty that may affect the management of JX Nippon Mining & Metals Group companies.” Here,in order to achieve risk management that is linked to our longterm vision, medium-term management plan, and business plan,
we classify risks into “management risks” and “business risks.”
Among those management risks and business risks, risks that
we determine will have a significant impact on the Group’s management, and that should be addressed on a company-widebasis, are designated as “material risk s” by the Executive Coun-

103 JX Nippon Mining & Metals Corporation

Strengthen Risk Transfer Strategies

Promotion of Risk Personnel Education

Risk response is the assessment of risk and the selection andimplementation of an appropriate response to that risk, andincludes transfer, reduction, retention, or avoidance. For risks
that could have a significant impact on our business activities
despite our risk reduction measures, we will utilize insurance asa means of risk transfer to address the risk. The Risk Management Office has established uniform standards for insurance
coverage to ensure that insurance is properly arranged andutilized. We will continue to review these standards as appropriate to ensure effective and precise risk transfer responses.

With the aim of increasing risk sensitivity, the Group conducts
training for those responsible for and in charge of risk management promotion. For example, we share perspectives and casestudies that are necessary to properly identify risks that may
affect the achievement of each organization’s goals. In addition,
we hold workshops on an ongoing basis to discuss measures
to prevent the emergence of risks related to cross-divisional
themes.

Sustainability Report 2022 104

Section 3 Materiality and ESG Management
GovernanceBusiness Continuity Plan (BCP) Initiatives
The Group has formulated business continuity plans (BCP*1) tominimize damage and achieve early recovery in the event ofbusiness interruption due to a major earthquake.
From fiscal 2020, we have taken this to a higher level andhave begun working toward the establishment of an all-hazard
BCP called a resource-based BCP. This is not a BCP for each
event such as an earthquake or a flood, but one that focuses
on resources (facilities, raw materials, materials, etc.) that arelikely to disrupt business activities during emergencies, andorganizes relevant disaster mitigation and recovery measures.
In addition, we regularly survey the risk of disasters occurring
where our major business sites are located to help us makedecisions about preventing damage and investing in facilities.
Through these efforts, we aim to further strengthen our BCPs.
We also continue to further improve our initial disaster
response.
In fiscal 2021, at the head office and other sites, we (1) theestablishment of a disaster control headquarters, (2) the confir-

Materiality 6

Strengthen Governancemation of employee safety, (3) the assessment of damages both
inside and outside each company, and (4) the sharing and discussing of information, and initiation of measures. The exercise
was carried out without disclosing the scenario. The Groupendeavors to verify BCPs through periodical training and establish a Business Continuity Management (BCM*2) system forfurther improvement.

JX Nippon Mining & Metals Group Basic Policy on Information Security
As a company with a social mission to provide a stable supply of nonferrous metals and advanced materials, the JX Nippon Mining & Metals
Group recognizes that the information entrusted to us by our customers and business partners, as well as trade secrets and personal
information held by us, are important assets. We have established a basic policy for information security in order to systematically andcontinuously strengthen information security.
1. L egal compliance and social responsibility
Comply with laws and regulations, government guidelines, contractual obligations, and internal rules related to information security, and work

*1 BCP: Business Continuity Plan
*2 BCM: Business Continuity Management

to foster compliance management and a culture that emphasizes information security.
2. Maintain and strengthen the trust we receive from customers and business partners
Ensure the protection of information assets entrusted to us by our customers and business partners.
3. Contribute to the expansion of our own business opportunities
Ensure protection of information assets that can be a source of competitive advantage.

Quality Control in the Supply Chain

BCP training at the Head Office

The Group recognizes that its social mission is to provide a stable supply of nonferrous metals and materials in order to contribute to
the sustainable development of society. Based on this policy, we aim to improve the level of quality control throughout the entire
supply chain.

VOICE

JX Nippon Mining & Metals Group Basic Quality Policy

Comments From Saganoseki Smelter & Refinery Representative

The JX Nippon Mining & Metals Group hereby sets forth, and acts in observance of, this Basic Quality Policy in order to contribute to the

Saganoseki Smelter & Refinery conducted a BCP training in October 2021, practicing improvement
measures for issues that had emerged during the previous year’s training and discussing facility
recovery plans. This time, we conducted a training exercise conducted for a tsunami caused by anearthquake and focused on verifying whether the new rules of conduct stipulated in the BCP document could be implemented without delay. It included the evacuation of employees and vehicles tohigher ground and the establishment of a first-aid station.
The Saganoseki Smelter & Refinery is located in an area adjacent to the ocean and therefore
faces a high risk of experiencing earthquakes and tsunamis. We will continue to make efforts to further strengthen our BCP system to ensure a stable product supply.

Information Security Initiatives
The Group has taken steps to build an information security
management system (ISMS) in compliance with ISO 27001 fromthe three perspectives of strengthening information security
compliance, increasing customer trust, and leveraging information internally and externally. In fiscal 2021, we conducted risk
assessments and internal audits of information security in eachdepartment and made improvements based on the results ofthese assessments under the supervision of the Information
Security Officer. We also further strengthened physical protection measures. In addition, in order to raise awareness of information security within the Group, we conducted rank-based
training programs based on the newest information available,
including training for members of management and training for
general employees.
In upgrading information security, we will incorporate thecyber security measures implemented by the IT Department. At
the same time, we will promote continuous improvement in

105 JX Nippon Mining & Metals Corporation

development of a sustainable society while recognizing that its social mission is to stably supply nonferrous metals and materials.
1.Grasp the requirements of customers and society correctly in order to offer products and services that customers can trust and that satisfy theirneeds.
JX Metals Smelting Co., Ltd.
Administration Department,
Saganoseki Smelter & Refinery

Iwai Koji

quality.

Information Security Structure
Information Security Officer
Information Security Committee

Secretariat

Information
Security Secretariat

Information Security
Managers

environmental conservation.
3.Establish a quality management system, carry out continual improvements, and develop human resources.
4.Comply with all pertinent laws and regulations of Japan and other countries, and provide customers and society with accurate information on

accordance with ISMS in order to contribute to the realizationof our long-term vision of becoming a technology-based
company.

Management

2.Improve and maintain quality in all processes from development, design, and production to delivery, while paying due attention to safety andEstablishing and Operating a Quality
Management System
The Group has and operates a quality management system(QMS) to realize our Basic Quality Policy. We work to continually
make improvements through steady PDCA cycles, aiming torealize better quality through the QMS. Company sites both inJapan and overseas have acquired QMS third-party certification(ISO 9001, etc.).
In addition, the Group reviews quality improvement activities
and establishes action plans through the Quality Management

Meeting, which is made up of top management. We also holdQuality Assurance Managers’ Meetings twice annually to share
information on quality management. Participants share the action plans adopted at the Quality Management Meeting andshare issues encountered and best practices found at each site
to promote interactions among quality assurance managers. In
addition, we are working to improve the effectiveness of internal
quality audits, automate inspections, and strengthen the trainingof quality control personnel.

Information Security
and Internal
Audit Managers

Departments
Information Security
Promoters

Information Security
Promoters

Information Security
Promoters

Sustainability Report 2022 106

Section 3 Materiality and ESG Management
Governance

ESG Data Book
Manufacturing Sites With Third-Party QMS Certification[Domestic]
Isohara Works; Kitaibaraki Precision Co., Ltd.; Kurami Works; JX
Nippon Coil Center Co., Ltd. (Kurami Office, Kawasaki Office);
Hitachi Works (Copper Foil Dept.); Ichinoseki Foil ManufacturingCo., Ltd.; JX Metal Smelting Co., Ltd. (Saganoseki Smelter &Refinery, Hitachi Works); Japan Copper Casting Co., Ltd.
(Saganoseki Works); JX Metals Trading Co., Ltd. (Takatsuki
Plant); JX Metals Precision Technology Co., Ltd. (Esashi Works,
Nasu Works, Kakegawa Works); TANIOBIS Japan Co., Ltd.
(Headquarters, Mito Plant); and Toho Titanium Co., Ltd.
(Headquarters/Chigasaki Plant, Hitachi Plant, Yahata Plant,
Wakamatsu Plant, Kurobe Plant)[Overseas]
Nippon Mining & Metals (Suzhou) Co., Ltd.; Nikko Fuji Precision(Wuxi) Co., Ltd.; JX Nippon Mining & Metals Dongguan Co., Ltd.;
Nikko Metals Taiwan Co., Ltd. (Longtan Works, Kuanyin Works);
JX Nippon Mining & Metals Philippines, Inc.; JX Nippon Mining &Metals USA, Inc.; JX Nippon Mining & Metals Korea Co., Ltd.;TANIOBIS GmbH (Goslar); TANIOBIS Smelting GmbH & Co. KG(Laufenburg); TANIOBIS Co., Ltd. (Map Ta Phut); Materials
Service Complex Malaysia Sdn. Bhd.; Materials Service Complex
Coil Center (Thailand) Co., Ltd.; and SCM Minera Lumina Copper
Chile

Quality Control Department Activities
The Quality Control Department is in charge of planning, proposal, promotion, and oversight for enhancement of Group-wide
quality control. This department is also engaged in clarifying
Group-wide QMS requirements, improving the effectiveness ofinternal quality audits, and supporting quality improvement activities and quality control education at manufacturing sites.
In fiscal 2021, we continued to remotely conduct internal
quality audits at 13 sites inJapan and overseas, despite restrictions imposed by
the COVID-19 pandemic.

Liability Claims
In fiscal 2021, there were no claims pursued under the Product
Liability Act due to personal or property damage caused by
defects in products made by Group companies.

Providing Information on Products andServices
In accordance with the Basic Quality Policy, the Group provides
customers with information on its products and services throughproduct specifications and Safety Data Sheets (SDS)*. For example, sulfuric acid sold by Group companies is designated asa deleterious substance under Japan’s Poisonous and Deleterious Substances Control Act. By limiting our business partners
to sellers of poisonous or deleterious substances and issuing
SDSs, we strive to prevent serious negative effects on the occupational health and safety for our customers and their employees after delivery.
* A Safety Data Sheet (or SDS) is a document that provides information on chemical
substances, product names, suppliers, hazards, safety precautions, and emergency
responses with regard to a given chemical product.

Addressing the ICMM’s Performance Expectations (PEs)
Quality Assurance Initiatives With Suppliers
Cooperation with suppliers is essential for thorough quality assurance. The Group respond to its suppliers based on quality
management standards and quality requirements. Our efforts
include conducting regular evaluations and quality audits, reducing quality risks, and improving the quality level of our suppliers. We also conduct Supplier Surveys to promote mutual
understanding with our suppliers.

Promotion of Personnel Quality Education
The Group ensures that all employees are thoroughly familiar
with the Basic Quality Policy through quality control education.
In addition, to we also provide quality control education to all
employees to improve their problem identification and resolution
capability, helping them to logically infer the root cause of aproblem and independently resolve it and improve the quality of
their work. These training programs, which range from introductory to advanced courses according to the level of the participants, have become an established part of employee training.
Starting in fiscal 2020, the Company’s Quality Control Department encourages internal quality auditors to acquire qualifications such as QMS Auditor and is introducing retrospective
training from outside instructors in order to improve their competence.

ICMM, of which JX Nippon Mining & Metals is a member, requires its member companies to conduct PEs*, a program toverify each company’s progress in achieving the roles and results
expected of the mining and metals industry. In response, theGroup conducted a self-assessment of its corporate office andseven sites. The following is a summary of the assessment
results.
Of the sites for which self-assessment was conducted, weplan to undergo third-party validation at the Saganoseki Smelter& Refinery and Hitachi Works, both of JX Metals Smelting Co.,
Ltd., as well as the Caserones Copper Mine. This is due to theirhigh quantitative importance in terms of elements such a business scale and production volume.
* Performance Expectations (PEs) is a program to evaluate companies’ achievementof requirements in the ICMM’s Mining Principles and Position Statements. Self-assessments and third-party validations are required for subject sites. Self-assessments are scored on a three-point scale: Meets, Partially Meets, and Does not Meet

Self-Assessment Analysis

Site

Results
Partially Meets*1

Meets*1

Does not meet*1

Not applicable*1

Total

Corporate

13

15

1*2

0

29

JX Metals Smelting Co., Ltd.
(Saganoseki Smelter & Refinery)

21

3

0

7

31

JX Metals Smelting Co., Ltd.
(Hitachi Works)

21

3

0

7

31

TANIOBIS (Goslar)

21

3

0

7

31

TANIOBIS (Laufenburg)

21

3

0

7

31

TANIOBIS (Thailand)

21

3

0

7

31

Caserones Copper Mine

27

3

0

1

31

Kasuga Mine

22

3

0

6

31

All the criteria indicated for each PE item in the Validation Guidance of ICMM have been met and there is sufficient evidence to demonstrate that these have been met*1 Meets:Partially meets: Some of the criteria of the Validation Guidance have been met, or there is some insufficient evidence
Does not meet: The criteria have not been met, or there is no evidence
Not applicable: Not applicable to Validation Guidance criteria*2 This is due to no Group-wide policy prohibiting exploration or development of new mines in World Heritage areas. We will consider the possibility of establishing such a policy going
forward.

Quality control education (Headquarters)

107 JX Nippon Mining & Metals Corporation

Sustainability Report 2022 108

ESG Data Book

Mass Balance Table for the Group (Fiscal 2021)

Environmental Management
Operating Sites That Have Obtained ISO 14001 Certification (as of March 31, 2022)

INPUT

Domestic Operating Sites: 29

EnergyRaw Materials
Primary raw materials

Water Resources

Fuel

Fresh water

Domestic operating sites

1,378 kt

Domestic operating sites

2,728 TJ

Overseas operating sites

19 kt

Overseas operating sites

2,290 TJ

Total

1,397 kt

Recycled raw materials

5,018 TJ

Total

Electricity*
164 ktDomestic operating sites

11,804 TJ

Overseas operating sites

13 kt

Overseas operating sites

9,668 TJ

178 kt17.7 cubic meters

Overseas operating sites

millioncubic meters

9.9

27.6 million
cubic meters

Total

21,472 TJ

Total

Hitachi Works of JX Nippon Mining & Metals Corporation (including HMC Manufacturing

JX Nippon Mining & Metals Philippines, Inc.

Department, Technology Development Center, Hitachi Seido Works of JX Metals Smelting

JX Nippon Mining & Metals USA, Inc.

Co., Ltd. and JX Nippon Environmental Services Co., Ltd.)

Materials Service Complex Malaysia Sdn. Bhd.

Copper Foil Dept. of JX Nippon Mining & Metals Corporation (including Hitachi Works of JX

JX Nippon Mining & Metals Korea Co., Ltd.

Nippon Foundry Co., Ltd. and Ichinoseki Foil Manufacturing Co., Ltd.)

Nikko Fuji Precision (Wuxi) Co., Ltd.

Isohara Works of JX Nippon Mining & Metals Corporation

Longtan Works of Nikko Metals Taiwan Co., Ltd.

Kurami Works of JX Nippon Mining & Metals Corporation (including JX Nippon Coil Center

Nippon Mining & Metals (Suzhou) Co., Ltd.

Co., Ltd. and the Kurami Office of JX Metals Trading Co., Ltd.)JX Nippon Mining & Metals Dongguan Co., Ltd.

Saganoseki Smelter & Refinery of JX Metals Smelting Co., Ltd. (including Japan Copper

TANIOBIS GmbH(includes TANIOBIS Smelting GmbH

Casting Co., Ltd., and JX Metals Smelting Logitech Co., Ltd.)& Co. KG, TANIOBIS Japan Co., Ltd., and TANIOBISJX Nippon Tomakomai Chemical Co., Ltd.

Co., Ltd.)JX Nippon Mikkaichi Recycle Co., Ltd.
Chigasaki Plant of Toho Titanium Co., Ltd. (including its Kurobe Plant and Wakamatsu Plant
and Toho Technical Service Co., Ltd.)

SeawaterDomestic operating sites

TotalmillionDomestic operating sites

Overseas Operating Sites: 12

JX Metals Precision Technology Co., Ltd. (Esashi Works, Tatebayashi Works, Nasu Works,
millionDomestic operating sites

33.4 cubic meters

Overseas operating sites

million— cubic meters33.4 million
cubic meters

Total* Includes thermal energy (consuming steam, hot water,
and cold water) supplied by third parties

and Kakegawa Works)
Amagasaki Office of JX Metals Trading Co., Ltd. (including Takatsuki Plant)
Shirakawa Plant of JX Nippon Takasho Co., Ltd.
Tsukuba Factory of Furuuchi Chemical Corporation

EnergyEnergy Consumption Intensity at Smelters andRefineries (Fuel and Electricity)

Energy Consumption

JX Nippon Mining & Metals Group

Total of domestic operating sites
Total of overseas operating sites(calorific value, terajoules)(calorific value in gigajoules per ton of refined copper produced)
20

40,00031,603OUTPUT

30,00020,00010,0000Copper concentrate

311 ktElectrolytic copper

383 ktGold

35 t

Silver

320 t

Platinum

515 kgPalladium

2,301 kg

Sulphur oxides

Nitrogen oxides

Total of domestic operating sites

Domestic operating sites

Domestic operating sites

383 kt282 kt4.4 ktScope2

Electro-deposited androlled copper foil

12 kt

Copper alloy, special steel
strips, etc.

33 kt
20 kt

Titanium sponge

1,047 kt

109 JX Nippon Mining & Metals Corporation

Overseas operating sites

Scope1
Scope2Total

155 kt73 kt

892 ktTotal

4.5 ktFinal disposal ofwaste materials
Domestic operating sites

Chemical substances(release and transfer)

8.7 ktOverseas operating sites

45.7 kt

Total of domestic operating sites

0.42 kt

Total

54.4 kt

12,57011,95818,657

14,222

14,532

2019

Overseas operating sites

Total

2021

14.6

2020

2021

5

0

(FY)

2019

(FY)

Energy Consumption in Logistics Stages (Domestic)

Domestic operating sites Overseas operating sites(calorific value, terajoules)
800

0.0 ktKerosene (kL)143

0.3 ktLight oil (kL)

2,725

52,663600Class A heavy oil (kL)

9,755

1,003

400

Class B and C heavyoil (kL)

14,492

1,972

200

Reclaimed oil (kL)2,558

Wastewater
Domestic operating sites
million52.5 cubic meters
Overseas operating sites

Total

2020

14.2

10

Breakdown by Fuel Type

0.3 kt0.1 ktTotal of overseas operating sites

339 t

Other metals (selenium, tellurium)

Sulfuric acid (by-product)

CO2
Scope1

12,945

13.6* Energy consumption is calculated by applying the calorific value conversion
coefficients for fuel and electricity as stipulated in the Act on the Rational Useof Energy (Energy Conservation Act). (9.97 MJ/kWh or 9.28 MJ/kWh is applied
for purchased electricity)

Emissions

Principal Products

15

26,49026,791

1.1

millioncubic meters

53.6

millioncubic meters

0

LPG/Butane (t)

5,399

7

LNG (t)

4,664

843

Coke (t)3,146Petroleum coke (t)2,558City gas (thousand
cubic meters)

18,343

686

677

670

2019

2020

2021

(FY)

* Applicable to specified consigners as defined in the Act on the Rational Use ofEnergy. Four Group companies fall under this definition: JX Nippon Mining &Metals Corporation, JX Metals Smelting Co., Ltd., Kasuga Mines Co., Ltd., andPan Pacific Copper Co., Ltd.

2,980

Sustainability Report 2022 110

ESG Data Book

Climate Change

Water Resources
Water Usage*1(million cubic meters)(million cubic meters)

Total of domestic operating sites
Total of overseas operating sites

150

110.3

9.5
100

100

0

2019

8.9

9.9

48.8

51.1

2020

18.9
(32.7%)

Groundwater

0.0(0.0%)
19.5(32.0%)

million cubic
metersRainwater

0.0(0.0%)

2019

Oceans

2020

(FY)

2021

7.3
(11.9%)

million cubic
meters33.4(54.7%)

Sewage systems

0.6(1.1%)

Fiscal 2020
52.5

million cubic
meters31.0(53.7%)

Rivers13.9(26.4%)

Fiscal 2021
61.0

0.6
(1.2%)

14.4(26.9%)

Fiscal 2021
53.6

38.1
(72.6%)

million cubic
meters38.6(71.9%)*1	Seawater usage at the Saganoseki Smelter & Refinery of JX Metals Smelting Co., Ltd. is calculated based on pumping capacity.
	Freshwater usage at the Saganoseki Smelter & Refinery of JX Metals Smelting Co., Ltd. and water usage at other operating sites are based on flowmeter readings or on invoicesfrom the site’s respective water utility.
*2	The volume of water discharged into public waters (oceans and rivers) at each operating site represents the following: an amount calculated based on drainage weirs (Hitachi Works,
Isohara Works, JX Nippon Tomakomai Chemical Co., Ltd., and JX Nippon Mikkaichi Recycle Co., Ltd.); an amount obtained by multiplying groundwater usage by a fixed rate (Kurami
Works, Toho Titanium Co., Ltd.’s Chigasaki Plant); an amount from invoices (Toho Titanium Co., Ltd.’s Yahata Plant and Kurobe Plant); or an amount based on flowmeter readings(other operating sites). The volume of water discharged into the sewage system at each operating site represents the following: an amount calculated based on daily water discharge(TANIOBIS Co., Ltd.); or an amount based on flowmeter readings or on invoices from the site’s respective sewage utility for other operating sites.

Water Usage Intensity at Smelters and Refineries(cubic meters per ton of refined copper produced)

250

250

150

150

100

138.3

101.2

86.2

104.2

93.1

100

520

2019

2020

2021

762
2019

0
(FY)

2019

2020

2021

30

0

58.0

0

Total of domestic operating sites
Total of overseas operating sites

(t)
90

2019

61.3

2020

(FY)

CO2 Emissions in Logistics Stages(thousand tons of CO2)
50

48.3

47.6

46.8

2019

2020

2021

25

(FY)

(kilograms of SOx per ton of refined copper produced)

Total of domestic operating sites
Total of overseas operating sites

16

11.3

12

0.1

4.2

2019

9.1

4.5
0.1

0.1

2020

8

4.4

4.1

4.5

2021

6.0

4

(FY)

0

2019

2020

2021

(FY)

30

29.8

(FY)

0

0.1

0.6

0.1

35.2
2021

0.5
0.4

0.4

37.1

2.2

2020

0.8

0.7

7.3

0.4

29.8

0.2

0.6

2019

(kilograms of NOx per ton of refined copper produced)

0.6

0.7

0.6

8.6

NOx Emission Intensity at Smelters and Refineries

Total of domestic operating sites
Total of overseas operating sites

60

0

58.0

2021

(kt)

0.8

* Totals are for operating sites subject to legal requirements (sites that discharge
water into oceans).

111 JX Nippon Mining & Metals Corporation

2021

(kt)

1.0

27.6

0

2020

SOx Emission Intensity at Smelters and Refineries

NOx Emissions

43.8

52.6

2019

SOx Emissions

4

(FY)

BOD Load
Total of domestic operating sites
Total of overseas operating sites

52.6

0

(FY)

2021

0.47

0.5

* Totals are for operating sites subject to emissions regulations.

COD Load

60

2020

6

Water Pollutants

61.3

488

0.80

* Applicable to specified consigners as defined in the Act on the Rational Use ofEnergy. Four Group companies fall under this definition: JX Nippon Mining &Metals Corporation, JX Metals Smelting Co., Ltd., Kasuga Mines Co., Ltd., andPan Pacific Copper Co., Ltd.

0(t)

Scope1
383
Scope2
282

0.97

1.0

0

2

90

892

416

4.6
0

162
279

* Scope 1 emissions are those from energy consumption (fuel), emissions fromincineration of waste materials (waste oil, waste plastic, sludge, waste wood),
and emissions from reducing agents, neutralizing agents, graphite electrodes,
and recycled materials, converted to equivalent CO2.
* Scope 2 emissions are those from electricity consumption converted toequivalent CO2. Emissions from electricity consumption include those fromthermal energy (consuming steam, hot water, cold water) supplied by third
parties. The emission factors applied for Scope 2 calculation are as follows fordomestic and overseas Group operating sites, respectively.
Domestic: T he latest adjusted emission factors per electric power utility
published by the Ministry of the Environment and the Ministry of
Economy, Trade and Industry are applied
Overseas: E mission factors published by local power companies, national
governments, or country-specific emission factors published in the
IEA Emission Factors 2021, issued by the International Energy
Agency (IEA), are applied

8

50

50

Scope1
155
Scope273

1,345

Air Pollutants

200
137.6

(tons of CO2 per ton of refined copper produced)
1.5

Water Discharge Intensity at Smelters and Refineries(cubic meters per ton of refined copper produced)

200

163
253

500

52.5

Total of domestic operating sites
Total of overseas operating sites

CO2 Emission Intensity at Smelters and Refineries

1,697

1,000

1.1

0

0

Tap water

0.8(1.4%)

Fiscal 2020
57.8

7.2
(12.4%)

53.6

1.0

Total Water Discharge*2

Industrial water

0.7(1.1%)

52.5

109.6

51.5

Total Water Usage*1
Seawater

2,000
1,500

50

(FY)

2021

2,500

0.7

61.0

57.8

109.5

(Thousand tons of CO2)

Total of domestic operating sites
Total of overseas operating sites

150

118.9

50

CO2 Emissions From the Entire JX NMM Group(Scope 1 & 2)

Water Discharge Volume*2

(FY)

*T
 otals are for operating sites subject to legal requirements (sites that discharge
water into rivers or streams).

0

0.6

0.3

0.0

0.2

0.3
2019

2020

2021

(FY)

0

2019

2020

2021

(FY)

* Totals are for operating sites subject to emissions regulations.

Sustainability Report 2022 112

ESG Data Book

Occupational Health and Safety

Waste Materials and By-Products

Occupational and Other Accidents*1, *2
Volume of Final Disposal of Waste

Total Discharge Volume by Type of Waste Materials
Sludge(kt)

Cinders

Waste oil

60

54.4

49.0

Acid/Alkaline waste

8.3
12.3 (9.6%)(14.3%)

40

Slag

20.9
(18.7%)

10.1

0

2019

2020

* These do not include the approximately 27.0 million tons of slag from the Caserones CopperMine.
* The volume of final disposal of waste has increased rapidly due to the inclusion of Toho Titanium
Co., Ltd.’s offshore landfill volume and final disposal volume of the TANIOBIS Group in calculations, as of fiscal 2020.

65.0(58.2%)

Employees (includingGroup companies)

3.9(3.5%)

2.8(2.5%)

By-Product Production
88(3.7%)Slag

GypsumIron concentrate

89(3.7%)

71(3.6%)

72(3.7%)

Fiscal 2020
2,391kt

946(39.6%)

Safety performance atdomestic operatingsites*3

1,268(53.0%)

771(39.3%)

Employees ofsubcontractors*7

1,047(53.4%)Breakdown of Release Volumes of PRTR Substances(kt)

On-site landfill disposal

Water

Air

0.08
0.06

0.50
0.44

0.056

0.056

0.42

0.034

0.4

0.052
0.035

0.038

0.04

0.37

0.45

0.2

0.022

0.02

0.06

0

2019

0.05

0.06
2020

2021

0

(FY)

0.018

0.0
2019

0.0

0.0
2020

(Reference)
Safety performance at overseas operatingsites*10

0.017
2021

(FY)

Cabinetorder no.

(t)

Release volume
Chemical substance

Air

Water

Transfer volume
On-site landfill
disposalSewage systems

Waste materials

1

31 Antimony and its compounds

0.1

0.5

0.0

0.0

7.9

2

75 Cadmium and its compounds

0.1

0.1

0.0

0.0

20.8

3

132 Cobalt and its compounds

0.0

0.1

0.0

0.0

19.5

4

300 Toluene

32.0

0.0

0.0

1.6

281.0

5

305 Lead compounds

0.7

0.1

0.0

0.0

14.6

6

309 Nickel compounds

0.1

0.4

0.0

0.0

9.3

7

354 Dibutyl phthalate

0.0

0.0

0.0

0.3

5.8

8

405 Boron compounds

0.0

9.3

0.0

0.0

3.5
(g-TEQ)

9

7

10

10

13

24

Total (persons)

13

20

34

Strain or overexertion

1

5

6

Fall on same level

1

1

3

Caught in, on or between

1

3

1

Fatalities*4

—

0.00

0.00

Occupational accidents withsevere consequences*4

—

0.00

0.00

Accidents with lost work days*4

—

0.53

0.74

Severity rate of industrial accidents*

—

0.03

0.03

Cumulative work hours*6

Major types ofoccupational
accidents*5

243 Dioxins

0.1

0.0

0.0

0.0

7.0

* The values given are the total amount reported by operating sites subject to reporting requirements under the PRTR Act. (the domestic companies defined in Scope of thisReport on page 3 as subject to Environment section reporting).
Of the 49 chemical substances subject to reporting, those totaling at least 5.0 tons in any category, and dioxins, are listed here.
There were no cases of chemical substances released into the soil.

113 JX Nippon Mining & Metals Corporation

Major types ofoccupational
accidents*5—

13,290,060

13,442,362

Fatalities (persons)

0

2

0

Occupational accidents withsevere consequences (persons)

2

0

0

Accidents with lost work days
(persons)

2

2

6

Accidents without lost work days
(persons)

5

6

13

Total (persons)

9

10

19

Cut or rubbed

1

4

4

Crashes or falls to lower level

0

2

2

Struck by object

2

0

0

Fatalities*4

—

0.64

0.00

Occupational accidents withsevere consequences*4

—

0.00

0.00

—

0.64

1.94

Severity rate of industrial accidents*6.7

—

4.82

0.11

Cumulative work hours*7—

3,117,548

3,090,280

Total casualties (persons)

22

30

53

Occupational injury rate per 1,000 employees (four ormore lost workdays)*8

0.7

1.1

1.7

Explosions and fires (incidences)*9

3

1

0

Fatalities (persons)

1

0

0

Accidents with lost work days (persons)

18

13

19

Accidents without lost work days (persons)

3

5

7

Total (persons)

22

18

26

Caught in, on or between

8

3

8

Fall on same level

1

5

4

Strain or overexertion

0

3

3

Major types ofoccupational accidents

Volumes of Release and Transfer of Major PRTR Substances in Fiscal 2021
No.

3

Accidents without lost work days
(persons)*4

Accidents with lost work days*4

Transfer volume

0.38

0

Frequency rate ofindustrial
accidents*6,7

0.8
0.6

0

Fiscal 2021
1,961kt

Volumes of Release and Transfer of PRTR Substances
Release volume0

Accidents with lost work days
(persons)*4

Casualties ofoccupational
accidents*5

Chemical Substances(kt)

0

Occupational accidents withsevere consequences (persons)*4

6

Sulfuric acid2021
0Frequency rate ofindustrial accidents*6* Total emissions increased because slag, which had been reused as valuable resources, is
now treated as waste.

2020
0

Casualties ofoccupational
accidents

Fiscal 2021
111.6 kt

1.8
(1.7%)

5.0(5.9%)

(FY)

2021

4.5
(4.0%)

Fiscal 2020
85.8 kt

2.1(2.5%)
2.7(3.1%)

12.6(11.3%)

2019
Fatalities (persons)*4

Other

53.3
(62.1%)

2.2(2.6%)

20

Category

Waste plastics*1 Safety performance data is compiled on a calendar year basis (January to December).
*2 The number of casualties presented in this table includes work-related illnesses such as back pain and heat stroke.
*3	Until 2019, data included the Company and other Group companies (excluding Toho Titanium Co., Ltd.); however, from 2020, Toho Titanium and subcontractors have alsobeen included in the scope of aggregation, and data has been retroactively revised to 2019. Note that frequency and severity rates are excluded.
*4 Each accident category is defined as follows.
• Fatalities: Worker deaths resulting from work-related causes.
• Occupational accidents with severe consequences: Accidents resulting in more than six months of lost work days or a disability grade.
•A ccidents with lost work days: Accidents requiring one or more days of absence from work for the purpose of examination, treatment or recuperation. These shall in
principle be at a physician’s discretion. Note that this excludes “Occupational accidents with severe consequences.”•A ccidents without lost work days: An accident that does not require one full day or more of absence from work as diagnosed by a physician, and in which the affected
worker is able to go to work after the accident.
*5 Incidences related to the cause of the injury or illness, based on “Types of Accidents,” published by the Ministry of Health, Labour and Welfare.
*6	Both the frequency rate (the number of persons harmed or killed due to occupational accidents per million cumulative actual work hours) and the severity rate (number ofwork days lost per thousand cumulative actual work hours) had only covered Company employees until 2019; however, as of 2020, these figures cover Company
employees and employees at other Group companies (including Toho Titanium Co., Ltd.). Note that cumulative working hours are calculated based on the hours reported
from work sites with production facilities (operations divisions) and major offices such as the head office, including some estimation in the figures.
*7	Safety statistics for subcontractor employees include not only those stationed permanently but also spot vendors. Note that these are subject to statistics for frequency
rate and severity rate as of 2020. Here, cumulative work hours are calculated as follows: Number of permanently stationed subcontractor employees at the end of eachmonth x number of operating days x 8 hours/day.
	(Reference) In 2021, the frequency and severity rate of occupational accidents for all businesses in Japan were 2.09 and 0.09, respectively (Source: Ministry of Health,Labour and Welfare, “Survey on Industrial Accidents”)*8	The Group defines a serious accident as one that results in four or more lost work days, and considers the occupational injury rate per 1,000 employees to be one of its
key indicators for evaluation. (Occupational injury rate per 1,000 employees (four or more lost workdays) = number of casualties with four or more lost workdays ÷ total
number of employees (including employees of regular partner companies) x 1,000)*9 No physical injuries were caused as a result of explosions/fires.
*10	While this includes Group companies and subcontractors, this data should be used only for reference as it is difficult to conduct follow-up surveys and aggregate working
hours for subcontractors at overseas operating sites, and detailed data such as frequency rates are not disclosed.

Sustainability Report 2022 114

ESG Data Book

Human Resource Development

No. of Employees (by Region; as of March 31, 2022)(persons)Japan

Training Programs Implemented in Fiscal 2021

(hours)Managerial staff
Male

Total program hours(annual)Non-management employees

Female

Total

Male

Female

Total

Total

Male

FemaleTotal

13,049505

13,55454,244

7,646

61,89067,2938,151

75,444

30

11

22

42

14

24

24

25

24

Per employee* Survey scope: Employees of JX Nippon Mining & Metals plus those seconded by the Company to JX Nippon Environmental Services Co., Ltd. and JX Metals
Smelting Co., Ltd. (Saganoseki Smelter & Refinery, Hitachi Refinery)

North America

South America

Asia

EuropeMiddle East

Total

Male

6,266

96

904

1,043

342

12

Female

815

29

88

446

72

0

8,663
1,450

Total

7,081

125

992

1,489

414

12

10,113

No. of Newly Hired Employees (April 1, 2021 to March 31, 2022)(persons)

Male

Employment and Work Styles

FemaleTotal

New hires

718

151

869

Percent of total employee countas of March 31, 2022

8%

10%

9%

(persons)

Age 29 oryounger

Age 50 orolder

Age 30 to 49

Total

337

400

132

869

23%

7%

5%

9%

Survey scope:	Companies in which JX Nippon Mining & Metals has 50% or more of their voting rights, directly or indirectly(persons)

Counting of seconded employees: Includes all employees being seconded to or from the companies subject to this survey

North
AmericaJapan

No. of Employees (by Employment Status and Employment Contract Type; as of March 31, 2022)(persons)

Employment status

Full-time

Contract typeFemaleTotal

Contracts
without fixed
terms

8,045

1,249

9,294

Contracts with
fixed terms

524

120

644

8,569

1,369

9,938

Full-time subtotal

Part-time

Male

27

45

72

Contracts with
fixed terms

67

36

103

94

81

175

8,663

1,450

10,113Full-time

Contracts without
fixed terms

North
America

Japan

South
America

Asia

EuropeMiddle East

Total

123

916

1,423

364

12

9,294

Contracts with
fixed terms

475

2

76

63

28

0

644

6,931

125

992

1,486

392

12

9,938

Contracts with
fixed terms

48

0

0

3

21

0

72

Part-time
subtotal

102

0

0

0

1

0

103

150

0

0

3

22

0

175

7,081

125

992

1,489

414

12

10,113Total

115 JX Nippon Mining & Metals Corporation

New hires

581

28

140

108

12

0

869

8%

22%

14%

7%

3%

0%

9%

Female

Total

Retiring employees

550

95

645

Percent of total employee countas of March 31, 2022

6%

7%

6%

North
America

Japan

6,456

Part-time subtotal

Total

Percent of total employee count as of March 31,
2022

Male

Contracts
without fixedterms

Full-time subtotal

Middle East

No. of Employees Ending Employment (April 1, 2021 to March 31, 2022)(persons)

Contract type

Europe(persons)

Age 29 oryounger

Age 50 orolder

Age 30 to 49

Total

146

309

190

645

10%

5%

7%

6%
(persons)

Part-time subtotal

Employment status

Asia(persons)

Contracts
without fixed
terms

Total

South
AmericaSouth
America

Asia

EuropeMiddle East

Total

Retiring employees

357

34

120

124

10

0

645

Percent of total employee count as of March 31,
2022

5%

27%

12%

8%

2%

0%

6%

* Figures include employees transferred to companies outside of survey scope and those returning due to termination of secondment.
* Figures do not include employees who were transferred within a company inside the survey scope, or those returning due to termination of secondment.
* Employees retiring at the mandatory retirement age are not in scope.

Membership in Labor Unions (as of March 31, 2022)(persons)

Male

FemaleTotal

No. of union members

5,426

799

6,225

Unionization rate

63%

55%

62%

(persons)

Age 29 oryounger

Age 30 to 49

Age 50 or
older

Total

1,120

3,896

1,209

6,225

76%

65%

46%

62%

Sustainability Report 2022 116

ESG Data Book

Diversity

Independent Assurance Report

Use of Childcare Leave in Fiscal 2021 (JX Nippon Mining & Metals)(persons)

Male

FemaleTo the President and Chief Executive Officer of JX Nippon Mining & Metals Corporation

Total

No. of employees using leave

20

13

33

No. of employees eligible to use leave*

106

13

119

Usage rate (rounded to nearest percent)

19%

100%

28%

We were engaged by JX Nippon Mining & Metals Corporation (the “Company”) to undertake a limited assurance engagement of the environmental and social
performance indicators marked with* Male: Employees with a child born within the fiscal year
Female: Employees whose post-childbirth leave ended during the fiscal year and who can take childcare leavemandatory requirements set out in ICMM position statement; the Company’s prioritization process for selecting assets for the validation of Asset-level

Retention Rate After Childcare Leave (Percentage of Those Still Employed 12 Months After Returning From Leave)(JX Nippon Mining & Metals)(persons)

Male

Female

Total

19

3

22

No. of employees still employed 12 months after
returning to work

16

3

19

84%

100%

86%

Rate of Return to Work After Childcare Leave (JX Nippon Mining & Metals)
Male

No. of employees who returned to work fromchildcare leave during fiscal 2021

17

No. of employees scheduled to return to work
Percentage

29

17

12

29

100%

100%

100%

Status of Rehiring Efforts in Fiscal 2021 (JX Nippon
Mining & Metals)

Our Responsibility
Our responsibility is to express a limited assurance conclusion on the Indicators based on the procedures we have performed. We conducted our engagementin accordance with the ‘International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements other than Audits or Reviews of Historical
Financial Information’ and the ‘ISAE 3410, Assurance Engagements on Greenhouse Gas Statements’ issued by the International Auditing and Assurance

Total

12

Persons With Disabilities as a Percentage of the Workforce
in Fiscal 2021 (JX Nippon Mining & Metals)(persons)

No. of age-limited retirees

70

No. of these rehired

53

Percentage

Percentage of employees with disabilities(statutory minimum: 2.3%)76%

No. of Locally Hired Senior Managers Overseas (Section Manager or Above) and Locally Hired Employees(as of March 31, 2022)(persons)

Number of senior
managers

Senior managers asa share of locally
hired employees*1

Number of locally
hired employees*2

Male

13

15%

85

Female3

10%29

North America subtotal

16

14%

114

Male

43

5%

862

Female6

7%

86

North America

South America

South America subtotal

49

5%

948

Male

38

12%

327

EuropeFemaleThe Company’s Responsibility
The Company is responsible for the preparation of the Indicators in accordance with its own reporting criteria (the “Company’s reporting criteria”), as described
set out in ICMM position statements; reporting on the Company’s prioritization process for selecting assets for the validation of APEs; reporting on the
Company’s identification and prioritization of material issues and reporting on the Company’s approach and management of its material issues.

(persons)

FemalePerformance Expectations (APEs); the Company’s identification and prioritization of material issues and the Company’s approach and management of its
material issues included in its Sustainability Report 2022 (the “Report”) for the fiscal year ended March 31, 2022.

in the Report; reporting on the alignment of the Company’s policies to the ICMM’s 10 Princiles, the relevant CPEs and the applicable mandatory requirements

No. of employees who returned to work fromchildcare leave during fiscal 2020

Percentage

2.21%Standards Board. The limited assurance engagement consisted of making inquiries, primarily of persons responsible for the preparation of information
presented in the Report, and applying analytical and other procedures, and the procedures performed vary in nature from, and are less in extent than for, areasonable assurance engagement. The level of assurance provided is thus not as high as that provided by a reasonable assurance engagement. Our
assurance procedures included:•	Interviewing the Company’s responsible personnel to obtain an understanding of its policy for preparing the Report and reviewing the Company’s reporting
criteria.
• Inquiring about the design of the systems and methods used to collect and process the Indicators.
• Performing analytical procedures on the Indicators.
•	Examining, on a test basis, evidence supporting the generation, aggregation and reporting of the Indicators in conformity with the Company’s reporting
criteria, and recalculating the Indicators.
• Visiting Toho Titanium Co., Ltd.’s Wakamatsu Plant and Yahata Plant selected on the basis of a risk analysis.
• Evaluating the overall presentation of the Indicators.
•	Assessing the alignment of the Company’s policies to the ICMM’s 10 Principles, the relevant CPEs and the applicable mandatory requirements set out in
ICMM position statements through documentation reviews and interviews.
• Assessing the Company’s prioritization process for selecting assets for the validation of APEs through documentation reviews and interviews.
•	Interviewing the Company’s responsible personnel and reviewing documents with respect to the Company’s process of identifying and prioritization its
material issues and its approach to and management of its material issues.
Conclusion
Based on the procedures performed, as described above, nothing has come to our attention that causes us to believe that:• the Indicators in the Report are not prepared, in all material respects, in accordance with the Company’s reporting criteria as described in the Report;•	the Company’s policies are not aligned to the ICMM’s 10 Principles and the applicable mandatory requirements set out in ICMM position statements as
described on page 18 of the Report;• the Company’s self-assessment of the relevant CPEs is not as described on page 108 of the Report;• the Company’s prioritization process for selecting assets for the validation of APEs is not as described on page 108 of the Report;• the Company has not identified and prioritized its material issues as described on pages 35 and 36 of the Report;• the Company has not approached and managed its material issues as described on pages 35, 36, 47, 61, 77, 89, 94 and 99 of the Report.
Our Independence and Quality Control
We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which includes
independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality andprofessional behavior. In accordance with International Standard on Quality Control 1, we maintain a comprehensive system of quality control including
documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.

8

12%

68

46

12%

395

Male

106

11%

982

Female

63

14%

444

Asia subtotal

169

12%

1,426

KPMG AZSA Sustainability Co., Ltd.

Total

280

10%

2,883

Tokyo, Japan

Europe subtotal
Asia

Scope of aggregation: Overseas Group companies in which JX Nippon Mining & Metals has 50% or more of their voting rights, directly or indirectly
Treatment of seconded employees: Employees seconded from companies outside of survey scope to companies inside of survey scope are counted.
Employees seconded from companies inside of survey scope to companies outside of survey scope are also counted.
*1 Percentage calculated as (Number of senior managers ÷ Number of locally hired employees) x 100*2 The number of employees directly employed by overseas subsidiaries, excluding employees on secondment and employees transferred to overseas subsidiaries

117 JX Nippon Mining & Metals Corporation(the “Indicators”) for the period from April 1, 2021 to March 31, 2022; the alignment of the Company’s policies to theInternational Council on Mining and Metals (“ICMM”)’s 10 Principles, the relevant Corporate-level Performance Expectations (CPEs) and the applicable

Kazuhiko Saito, Partner, Representative Director

March 23, 2023
Notes to the Reader of Independent Assurance Report:
This is a copy of the Independent Assurance Report and the original copies are kept separately by the Company and KPMG AZSA Sustainability Co., Ltd.

Sustainability Report 2022 118

ESG Data BookGRI Standards Content Index (Core Option)

102-35

Remuneration policies—

102-36

Process for determining remuneration—

102-37

Stakeholders’ involvement in remuneration—◎ = Core Items

102-38Annual total compensation ratio—

102-39Percentage increase in annual total compensation ratio—

Green: Standards adopted for core option compliance Blue: Standard adopted for reference, rather than for compliance

General Standard Disclosure Items
No.

Disclosure

Relevant contents

GRI 102: General Disclosures (2016)
Organizational profile

Stakeholder engagement◎102-40

List of stakeholder groups

P98: Stakeholder Engagement◎102-41

Collective bargaining agreements

P115-116: ESG Data Book (Employment and Work Styles)

Identifying and selecting stakeholders

P89-92: Respect Human Rights Principles
P98: Stakeholder Engagement◎102-1Name of the organization

P15-16: Global Network◎102-42◎102-2

Activities, brands, products, and services

P21-22: Value Creation Model
P27-28: The JX Nippon Mining & Metals Group for the Future Society
P29-34: Strategies By Business◎102-43

Approach to stakeholder engagement

P98: Stakeholder Engagement◎102-44

Key topics and concerns raised

P98: Stakeholder Engagement◎102-3

Location of headquarters

P15-16: Global Network

Reporting practice◎102-4

Location of operations

P15-16: Global Network◎102-45

Entities included in the consolidated financial statements

P3-4: Editorial Policy◎102-5

Ownership and legal form

P15-16: Global Network◎102-46

Defining report content and topic Boundaries

P3-4: Editorial Policy◎102-6

Markets served

P11-14: Medium-Term Management Plan for Fiscal 2020 to 2022
P15-16: Global Network◎102-47

List of material topics

P21-22: Value Creation Model
P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)

Scale of the organization

P11-14: Medium-Term Management Plan for Fiscal 2020 to 2022
P15-16: Global NetworkP27-28: The JX Nippon Mining & Metals Group for the Future Society
P115-116: ESG Data Book (Employment and Work Styles)◎102-7◎102-8◎102-48

Restatements of information

N/A◎102-49

Changes in reporting

N/A◎102-50

Reporting period

P3-4: Editorial Policy◎102-51

Date of most recent report

P3-4: Editorial Policy

Information on employees and other workers

P115-116: ESG Data Book (Employment and Work Styles)◎102-52

Reporting cycle

P3-4: Editorial Policy◎102-53

Contact point for questions regarding the report

Back cover◎102-9Supply chain

P21-22: Value Creation Model
P23-26: Special Feature 1 Sustainable Copper VisionP27-28: The JX Nippon Mining & Metals Group for the Future Society
P29-34: Strategies By Business◎102-54

Claims of reporting in accordance with the GRI Standards

P3-4: Editorial Policy
GRI Standards Content Index (This page)◎102-10Significant changes to the organization and its supply chain

N/A◎102-55

GRI content index

GRI Standards Content Index (This page)

External assurance

P3-4: Editorial Policy
P118: Independent Assurance Report◎102-11

Precautionary Principle or approach

Specific Standard Disclosures(DX) Strategy
P77-88: Create Attractive Workplaces
P89-93: Respect Human Rights
P99-107: Strengthen Governance

103-1◎102-12External initiatives

P17-19: Responding to International Norms and Initiatives◎102-13

Membership of associations

P17-19: Responding to International Norms and Initiatives

Statement from senior decision-makerP7-10: Message From the President

Key impacts, risks, and opportunities

P7-10: Message From the President
P11-14: Medium-Term Management Plan for Fiscal 2020 to 2022
P20: Outside Director Message
P21-22: Value Creation Model
P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)

102-15

Ethics and integrity◎102-16

Values, principles, standards, and norms of behavior

P1-2: JX Nippon Mining & Metals Group Code of Conduct102-17

Mechanisms for advice and concerns about ethics

P99-107: Strengthen Governance

Governance structure

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P99-107: Strengthen Governance

Governance◎102-18

Contributing to Environmental Conservation
GRI 103: Management Approach (2016)

103-2

Strategy◎102-14◎102-56

P7-10: Message From the President
P23-26: Special Feature 1 Sustainable Copper VisionP35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P37-46: Special Feature 2 The JX Nippon Mining & Metals Group’s Climate
Change Strategy
P47-54: Contributing to Environmental Conservation
P55-60: Special Feature 3 Further Accelerating our Digital Transformation

102-19Delegating authority—

102-20Executive-level responsibility for economic, environmental, and social topics

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)

102-21

Consulting stakeholders on economic, environmental, and social topics—

102-22Composition of the highest governance body and its committees—

102-23Chair of the highest governance body—102-24

Nominating and selecting the highest governance body—102-25

Conflicts of interest

P100: Corporate Governance102-26

Role of highest governance body in setting purpose, values, and strategy

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)

102-27

Collective knowledge of highest governance body

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)

102-28

Evaluating the highest governance body’s performance

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)

102-29Identifying and managing economic, environmental and social impacts

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)

103-3

Explanation of the material topic and its BoundaryP23-26: Special Feature 1 Sustainable Copper VisionP35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P37-46: Special Feature 2 The JX Nippon Mining & Metals Group’s Climate
Change Strategy
P47: Contributing to Environmental Conservation

The management approach and its components

P23-26: Special Feature 1 Sustainable Copper VisionP35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P37-46: Special Feature 2 The JX Nippon Mining & Metals Group’s Climate
Change Strategy
P47-54: Contributing to Environmental Conservation

Evaluation of the management approachP23-26: Special Feature 1 Sustainable Copper VisionP35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P37-46: Special Feature 2 The JX Nippon Mining & Metals Group’s Climate
Change Strategy
P47-54: Contributing to Environmental Conservation

GRI 301: Materials (2016)
301-1

Materials used by weight or volume

P109: ESG Data Book (Mass Balance Table for the Group)

301-2

Recycled input materials used

P109: ESG Data Book (Mass Balance Table for the Group)

301-3

Reclaimed products and their packaging materials—

GRI 302: Energy (2016)
302-1

Energy consumption within the organization

P109-110: ESG Data Book (Mass Balance Table for the Group, Energy)

302-2

Energy consumption outside of the organization

P109-110: ESG Data Book (Mass Balance Table for the Group, Energy)

302-3

Energy intensity

P109-110: ESG Data Book (Mass Balance Table for the Group, Energy)

302-4

Reduction of energy consumption

P109-110: ESG Data Book (Mass Balance Table for the Group, Energy)

302-5

Reductions in energy requirements of products and services—

GRI 303: Water and Effluents (2018)
303-1

Interactions with water as a shared resource

P53: Other Initiatives for Environmental Conservation

303-2

Management of water discharge-related impacts

—

303-3

Water withdrawal

—

303-4

Water discharge

P111: ESG Data Book (Water Resources)

303-5

Water consumption

P111: ESG Data Book (Water Resources)102-30Effectiveness of risk management processes

P103-106: Risk Management

GRI 304: Biodiversity (2016)

102-31

Review of economic, environmental, and social topics

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)

304-1

102-32Highest governance body’s role in sustainability reporting—

102-33

Communicating critical concerns

P103-106: Risk Management102-34Nature and total number of critical concerns—

119 JX Nippon Mining & Metals Corporation

Operational sites owned, leased, managed in, or adjacent to, protected areas
and areas of high biodiversity value outside protected areas

P51-52: Conservation of

304-2

Significant impacts of activities, products, and services on biodiversity

—

304-3

Habitats protected or restored

P51-52: Conservation of

Biodiversity

Biodiversity

Sustainability Report 2022 120

ESG Data BookGRI Standards Content Index
304-4

I UCN Red List species and national conservation list species with habitats inareas affected by operations—

GRI 305: Emissions (2016)

GRI 405: Diversity and Equal Opportunity (2016)405-1

Diversity of governance bodies and employees

P117: ESG Data Book (Diversity)

405-2

Ratio of basic salary and remuneration of women to men

—

305-1

Direct (Scope 1) GHG emissions

P109: ESG Data Book (Mass Balance Table for the Group)
P112: ESG Data Book (Climate Change, Air Pollutants)

305-2

Energy indirect (Scope 2) GHG emissions

P109: ESG Data Book (Mass Balance Table for the Group)
P112: ESG Data Book (Climate Change, Air Pollutants)

GRI 103: Management Approach (2016)

305-3

Other indirect (Scope 3) GHG emissions

P112: ESG Data Book (Climate Change, Air Pollutants)

103-1

Explanation of the material topic and its BoundaryP35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P89: Respect Human Rights

305-4

GHG emissions intensity

P112: ESG Data Book (Climate Change, Air Pollutants)

103-2

The management approach and its components

305-5

Reduction of GHG emissions

P37-46: Special Feature 2 The JX Nippon Mining & Metals Group’s Climate
Change Strategy

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P89-93: Respect Human Rights

305-6

Emissions of ozone-depleting substances (ODS)

—

103-3

Evaluation of the management approach

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P89-93: Respect Human Rights

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions

P109: ESG Data Book (Mass Balance Table for the Group)
P112: ESG Data Book (Climate Change, Air Pollutants)
P113: ESG Data Book (Chemical Substances)

GRI 306: Waste (2020)
306-1

Waste generation and significant waste-related impacts
Management of significant waste-related impacts

P23-26: Special Feature 1 Sustainable Copper Vision

Waste generated

P113: ESG Data Book (Waste Materials and By-Products)

306-4

Waste diverted from disposal

P113: ESG Data Book (Waste Materials and By-Products)

306-5

Waste directed to disposal

P113: ESG Data Book (Waste Materials and By-Products)

GRI 307: Environmental Compliance (2016)

GRI 103: Management Approach (2016)

103-2
103-3

Incidents of violations involving rights of indigenous peoples

P89-92: Respect Human Rights Principles

Operations that have been subject to human rights reviews or impact
assessments

P89-92: Respect Human Rights Principles

412-2

Employee training on human rights policies or procedures

P93: Human Rights Education and Internal Awareness Raising412-3

Significant investment agreements and contracts that include human rights
clauses or that underwent human rights screening—

Coexistence and Co-Prosperity With Local Communities
P54: Environmental Management

Provide Advanced Materials That Support Lives and Lifestyles

103-1

411-1

GRI 412: Human Rights Assessment (2016)
412-1

306-2

Non-compliance with environmental laws and regulations

GRI 411: Rights of Indigenous Peoples (2016)

P23-26: Special Feature 1 Sustainable Copper Vision

306-3

307-1

Respect Human Rights

GRI 103: Management Approach (2016)
103-1

Explanation of the material topic and its BoundaryP35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P94: Coexistence and Co-Prosperity With Local Communities

103-2

The management approach and its components

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P94-98: Coexistence and Co-Prosperity With Local Communities

103-3

Evaluation of the management approach

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P94-98: Coexistence and Co-Prosperity With Local Communities

Explanation of the material topic and its BoundaryP35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P61: Provide Advanced Materials That Support Lives and Lifestyles

The management approach and its components

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P61-76: Provide Advanced Materials That Support Lives and Lifestyles

GRI 202: Market Presence (2016)

Evaluation of the management approach

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P61-76: Provide Advanced Materials That Support Lives and Lifestyles

202-1

Ratios of standard entry level wage by gender compared to local minimum wage

―

202-2

Proportion of senior management hired from the local community

P115-116: ESG Data Book (Employment and Work Styles)

GRI 203: Indirect Economic Impacts (2016)
Create Attractive Workplaces

203-1

Infrastructure investments and services supported―

GRI 103: Management Approach (2016)

203-2

Significant indirect economic impacts

P94-97: Social Contribution Activities

103-1

Explanation of the material topic and its BoundaryP35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P77: Create Attractive Workplaces

GRI 413: Local Communities (2016)
Operations with local community engagement, impact assessments, anddevelopment programs

P94-98: Coexistence and Co-Prosperity With Local Communities

The management approach and its components

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P77-88: Create Attractive Workplaces

413-1

103-2

Operations with significant actual and potential negative impacts on local
communities

P52: Closed Mine Initiatives

Evaluation of the management approach

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P77-88: Create Attractive Workplaces

413-2

103-3

GRI 401: Employment (2016)

Strengthen Governance

401-1

New employee hires and employee turnoverP115-116: ESG Data Book (Employment and Work Styles)

401-2

Benefits provided to full-time employees that are not provided to temporary or
part-time employees

—

401-3

Parental leave

P115-116: ESG Data Book (Employment and Work Styles)

GRI 403: Occupational Health and Safety (2018)

GRI 103: Management Approach (2016)
103-1

Explanation of the material topic and its BoundaryP35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P99: Strengthen Governance

103-2

The management approach and its components

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P99-107: Strengthen GovernanceEvaluation of the management approach

P35-36: Materialities (Priority Issues) and KPIs (Key Performance Indicators)
P99-107: Strengthen Governance403-1

Occupational health and safety management system

P78-81: Ensure Safety and Promote Health
P114: ESG Data Book (Occupational Health and Safety)

103-3

403-2

Hazard identification, risk assessment, and incident investigation

P78-81: Ensure Safety and Promote Health
P114: ESG Data Book (Occupational Health and Safety)

GRI 205: Anti-corruption (2016)
Operations assessed for risks related to corruption―

Occupational health services

P78-81: Ensure Safety and Promote Health
P114: ESG Data Book (Occupational Health and Safety)

205-1

403-3

205-2

Communication and training about anti-corruption policies and procedures

P101-103: Rigorous Compliance

Worker participation, consultation, and communication on occupational healthand safety

P78-81: Ensure Safety and Promote Health
P114: ESG Data Book (Occupational Health and Safety)

205-3

Confirmed incidents of corruption and actions taken

P101-103: Rigorous Compliance

403-4
403-5

Worker training on occupational health and safety

Worker training on occupational health and safety

403-6

Promotion of worker health

P78-81: Ensure Safety and Promote Health403-7

Prevention and mitigation of occupational health and impacts directly linked bybusiness relationships

P78-81: Ensure Safety and Promote Health403-8

Workers covered by an occupational health and safety management system

—

207-3

Stakeholder engagement and management of concerns related to tax

―

403-9

Work-related injuries

P78-81: Ensure Safety and Promote Health
P114: ESG Data Book (Occupational Health and Safety)

207-4

Country-by-country reporting―

GRI 416: Customer Health and Safety (2016)403-10Work-related ill health

—

416-1

Assessment of the health and safety impacts of product and service categories

P106-107: Quality Control in the Supply Chain

416-2

Incidents of non-compliance concerning the health and safety impacts ofproducts and services

P106-107: Quality Control in the Supply Chain

GRI 404: Training and Education (2016)
404-1

Average hours of training per year per employee

P115: ESG Data Book (Human Resource Development)

404-2

Programs for upgrading employee skills and transition assistance programs

P85-86: Human Resource Developments

404-3

Percentage of employees receiving regular performance and career development
reviews—

121 JX Nippon Mining & Metals Corporation

GRI 206: Anti-competitive Behavior (2016)
206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

P101-103: Rigorous Compliance

GRI 207: Tax (2019)
207-1

Approach to tax

P101-103: Rigorous Compliance

207-2

Tax governance, control, and risk management―

GRI-419: Socioeconomic Compliance (2016)
419-1

Non-compliance with laws and regulations in the social and economic area

P106-107: Quality Control in the Supply Chain

Sustainability Report 2022 122

We welcome your views and questions regarding this Sustainability Report 2022.
Any opinions provided will be used to improve future reports even further.
Please use our e-mail or post address below to contact us.

JX Nippon Mining & Metals Corporation Sustainability Report 2022

JX Nippon Mining & Metals Corporation ESG Promotion Department

SUSTAINABILITYREPORT 2022

10-4, Toranomon 2-chome, Minato-ku, Tokyo 105-8417, JapanThe Okura Prestige Tower
E-mail: esg_promotion@jx-nmm.com
URL: https://www.jx-nmm.com/

JX金属̲2022-E.indd 4,1

2023/03/23 18:28