JX Nippon Mining & Metals Corporation will expand into the mineral resources business in the field of rare metals, and will work to build and reinforce an integrated business structure encompassing upstream to downstream operations. As a first step, the Company has decided to participate in the business of producing tantalum raw materials.
From January 2023, under the joint venture (JV) with AMG Brasil SA, we will produce tantalum concentrates from ores extracted at the Mibra mine operated by AMG. These tantalum concentrates will be purchased on a priority basis by TANIOBIS GmbH, a member of the JX Nippon Mining & Metals Group, and will account for approximately 20% of TANIOBIS’s total procurement. In addition to ensuring the stable procurement of raw materials for the production of advanced materials, this will also further our efforts toward sustainable and responsible procurement.
The strategy outlined in the JX Nippon Mining & Metals Group Long-Term Vision 2040 positions rare metals, which are essential for the production and development of advanced materials, as a central business domain alongside copper. As part of this strategy, TANIOBIS and the rest of the Group have been working to expand business in functional tantalum powders and other advanced materials. These advanced materials are used in leading-edge semiconductors and tantalum capacitors, and demand is increasing steadily in line with expanding demand for mobile devices and telecommunications infrastructure. This growth is expected to continue into the future.
Tantalum and many other rare metals are expected to become even more vital in the future as the raw materials for advanced materials. In addition to the importance of securing a long-term and stable supply of these raw materials, companies are also being called upon to be proactive in their efforts toward responsible procurement, which gives due consideration to safety and human rights and is ethical and sustainable. With the aim of securing a long-term and stable supply of the raw materials for advanced materials and carrying forward our efforts toward responsible procurement, the Group has been considering several specific projects for participation in the resources business in the rare metals field.
As well as contributing to a stable supply of advanced materials for which supply chain transparency is ensured, we hope that this decision will enable the Company to acquire business expertise by participating in the production of tantalum materials at a mine owned by a trustworthy partner, as a first step in our expansion into the resources business in the rare metals field. Through our investment in this business, we aim to build our presence as a player in the upstream operations of the rare metals field, and hope that this will lead to the acquisition of competitive mining interests in the rare metals field and otherwise help to further strengthen our integrated business structure encompassing upstream to downstream operations.
In accordance with the JX Nippon Mining & Metals Group Long-Term Vision 2040, the Company will continue to aim for a stable supply of advanced materials for which supply chain transparency is ensured from the raw materials stage, and will continue contributing to social development and innovations.