JX Nippon Mining & Metals Corporation is the core company engaged in the nonferrous metals business in the JX Group, which is aiming to become one of the largest "integrated energy, resources and materials business groups" in the world. As a member of the JX Group, we are constantly striving to realize the JX Group Values of ethics, advanced ideas, relationship with society, trustworthy products/services, and harmony with the environment. While acting in accordance with these values, the Company has been active in businesses covering upstream resources development, midstream metals smelting and refining, and the downstream areas of electronic materials and recycling and environmental services with copper at its core. As an integrated nonferrous metal manufacturer, the Company is forging ahead with a global mindset under its basic policy to not only grow each field of its business in a steady and solid way, but also maintain a well-balanced approach.

The characteristics of our business are:

1. We supply society with the basic metal resources and materials that support daily life and industry activities in a broad sense.
2. Our business activities—ranging from the exploration of resources and the manufacturing and fabrication of the most cutting-edge materials to materials recycling—are consistently geared to a recycling-oriented business structure that uses the limited resources from the earth as its primary raw materials.
3. Our business activities are developing globally, widely, and diversely.

The Group has defined its Code of Conduct based on these characteristics and our resolve that we will contribute to the sustainable development of both the economy and society based on the tenacious development of technologies. In other words, we believe that developing our operations will contribute to the sustainable development of the economy and society; therefore, our CSR activities are nothing more or less than our business activities. It is critical, therefore, that our employees playing main roles in carrying out our business activities are constantly aware of the degree to which they can contribute to the sustainable development of the economy and society through their daily work.

Looking back, since the Company's establishment over 100 years ago, we have worked to resolve environmental problems and pursue our business activities always with the aim of coexisting with local communities as a top concern. Our construction of the Giant Smokestack and planting of cherry trees (Jiro Nitta's novel Aru Machi no Takai Entotsu [A Tall Stack in a Town] was written on these themes) at the Hitachi Mine, the Company's birthplace, are just two of the ways in which this aspect of our company has been manifested. Now, as a member of the JX Group, we remember this aspect of our Group culture and re-acknowledge our commitment to live up to our social responsibilities in pursuing innovation in the productivity of resources and a harmonious relationship with stakeholders - two elements of our Code of Conduct.

Furthermore, we also believe that safety and disaster prevention measures as well as compliance are prerequisites to the continuation of our business, and form the basis of our CSR activities. Despite our best efforts to conduct safe, disaster-free operations, however, we did suffer two significant accidents in fiscal 2010. Reflecting seriously on the occurrence of these accidents, we are determined to once again exert our utmost efforts to implement thorough safety and disasterprevention measures in order to ensure that such accidents never happen again.

The Group has endorsed the 10 sustainable development principles of the International Council on Mining and Metals (ICMM), which is devoted to developing a sustainable society, agrees with the thoughts of the Extractive Industries Transparency Initiative (EITI), and supports the 10 principles of the United Nations Global Compact. We have also discussed the ICMM Position Statement in our CSR Committee and have given our support to it. The Sustainability Report 2011 has been compiled in accordance with the initiatives listed above, as well as with the Sustainability Reporting Guidelines 2006 of the Global Reporting Initiative (GRI) and the GRI Mining and Metals Sector Supplement, and has incorporated the 10 sustainable development principles of the ICMM.

The Group clearly recognizes its wide and diverse range of social responsibilities. In addition to reviewing the CSR activities that we have engaged in, we also actively work to communicate information about these activities both inside and outside of the Group. By absorbing a wide range of views and opinions, we are determined to further deepen and advance our CSR activities going forward.

I hope that this sustainability report will help readers deepen their understanding of our CSR activities and, at the same time, encourage them to candidly voice their opinions.