In August 2022, the JX Metals Group formulated our Sustainable Copper Vision. This vision reflects our recognition that copper is an essential material for achieving carbon neutrality and describes our policy for the supply and ongoing evolution of sustainable copper. We will continue pursuing Green Enabling Partnerships, which are collaborations and cooperation with partners involved in the supply and use of copper, for the development and wider dissemination of this vision.
Copper is an essential material for achieving carbon neutrality; therefore, copper suppliers and users are regarded as Green Enablers.
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Meeting increasing demand for copper requires a stable supply of copper ore and recycled raw materials.
While demand for copper will continue to grow over the long term, the supply of copper ore and recycled raw materials from existing mines is limited, and the supply-demand balance for copper 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.
We offer copper products using 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 most noteworthy 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.
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The JX Metals Group calculates electrolytic copper CFP produced at each of our facilities. We became the first copper smelter in Japan to obtain third-party assurance for the results of our calculations.
Under this initiative, we calculated the cradle to gate greenhouse gas emissions (raw materials procurement to product shipment) per kilogram of electrolytic copper produced at the Saganoseki Smelter & Refinery and Hitachi Works in fiscal 2021. Our calculations were in accordance with the GHG Protocol, which is an international calculation and reporting standard. Our results were certified by DNV Business Assurance Japan K.K., a third-party certification organization.
We plan to disclose the calculation results to our electrolytic copper customers in the future. We plan to discuss the results of our calculations with companies participating in the Green Enabling Partnership, addressing the low CFP (calculated using the mass balance method*), the high recycling ratio, and other significant environmental values associated with the supply of electrolytic copper.
Third-party certification
Our flash smelting furnace process not only uses 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 need for fossil fuels or other resources. We pursue the optimal combination of copper ore and recycled materials through our Green Hybrid Smelting to achieve sustainable production of copper. 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 and measures.
Saganoseki Smelter & Refinery, JX Metals Smelting Co., Ltd.
The Copper Mark Certification
The Saganoseki Smelter & Refinery and Hitachi Works are engaged in responsible production activities. These facilities were the first in Japan to receive The Copper Mark, a highly credible assurance framework that demonstrates the copper industry's commitment to the green energy transition.
The Copper Mark is a certification program established in 2019 requiring compliance with 32 standards, including standards for the environment, human rights, community, and governance. Both of the business sites will continue to undergo evaluations based on the various standards established under The Copper Mark.
In January 2023, the Caserones Copper Mine (Chile), in which we hold a partial interest, began the process for obtaining The Copper Mark. As international demands for ESG initiatives increase, we will continue efforts to strengthen the competitiveness of sustainable businesses.
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 and scrap collection, raw materials reuse, and joint technology development.
In August 2023, we established a Green Enabling Partnership with Intel Corporation, a leading company in the semiconductor industry and an advanced company in sustainability. We supply products to Intel, receiving the 2023 EPIC Distinguished Supplier Award. With this new partnership, our relationship with Intel has become even stronger. Under the partnership, we will continue to work toward the evolution and dissemination of sustainable copper.
In terms of increasing recycling ratios, we work with Intel to ensure the effective use of copper resources. Now, we plan to explore the potential of recycling other copper-related materials used in the manufacture of semiconductors. In terms of promoting responsible procurement and other initiatives, our two companies intend to continue efforts to build a responsible and sustainable copper supply chain.
The EPIC Distinguished Supplier Award recognizes suppliers that demonstrate outstanding performance across all evaluation criteria. To be eligible for the award, suppliers must achieve high goals that meet expectations and score 80% or higher in performance evaluations throughout the year.
In July 2023, we formed a Green Enabling Partnership with BHP, a leading global resources company. Under this partnership, we will continue to develop a responsible copper supply chain by strengthening traceability and certification of origin for raw materials, pursuing ongoing efforts to develop a responsible copper supply chain. We will work with BHP to reduce GHG emissions from the marine transportation of copper concentrates and sulfuric acid and share knowledge regarding the calculation of electrolytic copper CFP.
In January 2023, we signed an agreement with Waseda University to establish an endowed chair program* that contributes to carbon neutrality, the circular economy, and our Sustainable Copper Vision, in particular. Waseda University published a carbon neutrality declaration in 2021 and the university aims to achieve net zero CO2 emissions at each of its campuses by 2032, which is the 150th anniversary of its founding. Under the terms of the agreement, JX Metals and Waseda University will collaborate in the development of highly specialized human resources and the pursuit of basic research related to sustainable copper smelting technology.
