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Copper Smelting Industry in Japan
- Challenging the future -
Hiroshi Yao Chairman Japan Mining Industry Association
Joint Meeting 2013
May 2013
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Contents
About JMIA
Recovery from the earthquake
Japan: Broad political & economic context
Business climate – our industry
What differentiates us from others
Challenges
Conclusion
JAPAN MINING INDUSTRY ASSOCIATION 2/29
About JMIA
Recovery from the earthquake
Japan: Broad political & economic context
Business climate – our industry
What differentiates us from others
Challenges
Conclusion
JAPAN MINING INDUSTRY ASSOCIATION 3/29
【Established】 April 1948 【Members】 8 major non-ferrous metal & smelting companies + 44 others 【Objective】 Sustainable development of non-ferrous industry in Japan 【Activities】 • Formulate and propose mining policies to the Government • Collect and share information on supply/demand and new applications • Promote best practice and science through seminars • Create educational opportunities for students and members through
coordination with academia, International Institute for Mining Technology and governmental bodies
• Interact with various stakeholders such as industrial associations and governmental bodies both in Japan and abroad to promote industry’s interest ( ICMM, ICSG, ILZSG, INSG, IWCC, ICA, IZA, ILA, ECI )
• Networking amongst members
JAPAN MINING INDUSTRY ASSOCIATION
About JMIA
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About JMIA
Recovery from the earthquake
Japan: Broad political & economic context
Business climate – our industry
What differentiates us from others
Challenges
Conclusion
JAPAN MINING INDUSTRY ASSOCIATION 5/29
JAPAN MINING INDUSTRY ASSOCIATION
Recovery from the earthquake
2011 Tohoku Earthquake
Date: March 11, 2011 14:46
Magnitude :9.0
Epicenter:Pacific Ocean off the Sanriku Coast
• Most powerful earthquake known to hit Japan
• Following Tsunami intensified damage
• More than 15,800 deaths, 2,600 missing
(as of Apr 2013)
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10 plants in Tohoku/Kanto area
Hachinohe
Onahama
JAPAN MINING INDUSTRY ASSOCIATION
Recovery from the earthquake
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Berth & Unloader
Coastal Road Residential Area
JAPAN MINING INDUSTRY ASSOCIATION
Recovery from the earthquake After Earthquake and Tsunami Current
Outlet port
Tank house
• 410 employees • 350 contractors • dispatched staffs of
Mitsubishi Materials
The Revival of Onahama
Staffs engaged
Operations resumed
• 65% in 3.5 months • 100% in 5.5 months
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About JMIA
Recovery from the earthquake
Japan: Broad political & economic context
Business climate – our industry
What differentiates us from others
Challenges
Conclusion
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Japan: Broad political & economic context
JAPAN MINING INDUSTRY ASSOCIATION
• Stock market that peaked 23 years ago
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Nikkei 225
• Prolonged deflation
• Increasing public debt • Rapidly aging society
Are we setting precedents of “challenges” in an advanced society?
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Japan: Broad political & economic context
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Mr Abe came to power
About JMIA
Recovery from the earthquake
Japan: Broad political & economic context
Business climate – our industry
What differentiates us from others
Challenges
Conclusion
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Business climate – our industry 1. Competition from emerging countries
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5000
10000
15000
20000
25000
Cap
acit
y (K
mt)
World Copper Smelter Capacity
Other
North America
Latin America
Europe
Indonesia
Japan
China
Source:
WoodMackenzie
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+50% in 10+years led by Chinese
Business climate – our industry
JAPAN MINING INDUSTRY ASSOCIATION
2. Shrinking domestic demand
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Copper supply/demand - Japan Supply
Demand
Unit : Kt Cu
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2006 2007 2008 2009 2010 2011 2012
Sulfuric acid supply/demand - Japan
Source: JMIA
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Business climate – our industry
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3. Environmental challenges
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The question
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Are we going to continue to be a viable contributor to
Japanese/global economy?
Yes, we are!!
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About JMIA
Recovery from the earthquake
Japan: Broad political & economic context
Business climate – our industry
What differentiates us from others
Challenges
Conclusion
JAPAN MINING INDUSTRY ASSOCIATION 17/29
Pogo,Sumitomo
Hishikari,Sumitomo
Gold mine
Morenci,Sumitomo
La Candelaria,Sumitomo
Cerro Verde,Sumitomo
Ojos del Salado,Sumitomo Northparkes,
Sumitomo
Goro, Sumitomo
Taganito,Sumitomo Soroako,Sumitomo
Rio Tuba,Sumitomo
Batu Hijau, Sumitomo Mitsubishi Furukawa
Figesbal,Sumitomo
Namosi, Mitsubishi, Nittetsu
Copper Mountain,Mitsubishi
Escondida,JX,Mitsubishi
Los Pelambres,JX,Mitsubish
Atacama Kozan,Nittetsu Caserones,PPC
Sierra Gorda,Sumitomo
Collahuasi,JX,Mitsui Huanzala,Mitsui
Atalaya,Mitsui
Rasp,Toho Endeavor,Toho
Tizapa,Dowa
Gibraltar,Dowa,Furukawa
Copper mine Zinc mine Lead mine Nickel mine Uranium mine
McClean Lake,OURD
Akouta,OURD
Huckleberry, Mitsubishi
Dowa Furukawa
Midwest,OURD
Pallca,Mitsui
What differentiates us
JAPAN MINING INDUSTRY ASSOCIATION
1. Investment in first-class mines
•Have secured supplies from first-class mines through participation in mine projects •Aiming to increase the portion of supplies from invested mines
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What differentiates us
JAPAN MINING INDUSTRY ASSOCIATION 19/29
Project Country Production
commenced
Share of Japanese entities
Morenci US 1987 15.0%
Escondida Chile 1990 12.5%
La Candelaria Chile 1995 20.0%
Northparkes Australia 1996 20.0%
Huckleberry Canada 1997 50.0%
Collahuasi Chile 1998 12.0%
Batu Hijau Indonesia 1999 35.0%
Los Pelambres Chile 2000 40.0%
1. (cont.) Investment in first-class mines
Project Country Production
commenced
Share of Japanese entities
Antamina Peru 2001 10.0%
Atacama Kozan Chile 2003 60.0%
Cerro Verde Peru 2006 21.0%
Ojos del Salado Chile 2006 20.0%
Copper Mountain Canada 2011 25.0%
Gibraltar Canada 2013 25.0%
Caserones Chile 2013 100.0%
Sierra Gorda Chile 2014 45.0%
List of Japanese investment in copper mine projects (1987~ present)
Source: JMIA
What differentiates us
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1. (cont.) Investment in first-class mines
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Others
Imports frominvested mines
Ratio of importsfrom invested mines (%)
x 1,000t % Copper Concentrate Imports - Invested Mines
Source: JMIA
What differentiates us
JAPAN MINING INDUSTRY ASSOCIATION
2. Smelters – the ideal infrastructure for recycling
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No Waste
Slags
Acid
Copper Smelter
What differentiates us
JAPAN MINING INDUSTRY ASSOCIATION
3. Government-supported recycling-system
Chronology of recycling-related regulations
2000 The Basic Law for Establishing
the Recycling-based Society
2001 Home Appliance Recycling Law
(air conditioner, TV, refrigerator, washing machine)
2004 addition of freezer to HARL
2005 Act on Recycling, etc. of End-of-Life Vehicles
2009 addition of LCD/Plasma TV, dryer to HARL
2013 Small Home Appliance Recycling Law
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What differentiates us
JAPAN MINING INDUSTRY ASSOCIATION
Smelters
To Consumers
Manufacturers
Authorized Recyclers
Municipalities Retailers
Consumers collected
Recovery of metals
Dismantled, Crushed & sorted
Used as raw materials
Small home appliance recycling law (effective Apr 2013)
3. (cont.) Government-supported recycling-system
Source: MOE, METI
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What differentiates us
JAPAN MINING INDUSTRY ASSOCIATION
A slight digression…
“Sense of regret concerning waste when the intrinsic value of an object or resource is not properly used.”
“Mottainai “ (もったいない)
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About JMIA
Recovery from the earthquake
Japan: Broad political & economic context
Business climate – our industry
What differentiates us from others
Challenges
Conclusion
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Challenges
JAPAN MINING INDUSTRY ASSOCIATION
•Strict environmental regulations
•By-product sales
•Electricity costs
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About JMIA
Recovery from the earthquake
Japan: Broad political & economic context
Business climate – our industry
What differentiates us from others
Challenges
Conclusion
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Conclusion
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•serves crucial needs of our countries •vital industry that “bridges” the value chain
•collaborates with both upstream/downstream industries to make contribution to society
JAPAN MINING INDUSTRY ASSOCIATION
Thank you!
ありがとうございました。
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