Sumitomo Metal Mining

Basic Information

Stock Code
5713
Industry
Nonferrous Metals
Category Detail
Iron, Steel & Metal Products
Prefecture
Tokyo
Establishment Year
June 1937
Listing Year
June 1950
Official Website
https://www.smm.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Taiheiyo Metal, Mitsui Mining & Smelting, Toho Zinc, Mitsubishi Materials, DOWA Holdings, Furukawa Mechanical Metal, Osaka Titanium Technologies, Toho Titanium, Nippon Concentrates, Sumitomo Electric

Overview

Sumitomo Metal Mining is Japan's largest nonferrous metals manufacturer founded in 1937, possessing world-class mining development and smelting technologies, and a comprehensive resource company with a high market share in the battery materials field.

Current Situation

Sumitomo Metal Mining recorded consolidated sales of approximately 1.4453 trillion yen and net profit of approximately 58.6 billion yen (fiscal year ending March 2024), and conducts mining development and nonferrous metals smelting business domestically and internationally. Starting from the world-class Besshi Copper Mine, it can secure stable resources at multiple sites including the Hishikari Gold Mine and the US Morenci Copper Mine. In the battery materials business, it holds a high share in the cathode material market for electric vehicles and maintains a solid transaction base with automakers including Toyota Motor. It focuses on technology development and is proactive in developing new materials for functional materials and electronic materials. Regarding sustainability, it addresses reducing environmental impact and resource recycling, emphasizing fulfillment of social responsibilities. Moving forward, while strengthening ESG initiatives, it will advance growth strategies amid increasing global battery demand, and diversify its resource portfolio through expansion of overseas mining projects. It also continuously strengthens occupational safety, health, and environmental responses, aiming to enhance sustainable corporate value.

Trivia

Interesting Facts

  • Owns the Hishikari Mine, Japan's largest gold mine.
  • The only company in Japan supplying electrolytic nickel.
  • Origins in the Sumitomo family's copper smelting technology founded in 1590.
  • Holds high market share in battery materials for electric vehicles.
  • Holds interests in the Morenci Mine, one of the world's major copper mines in the US.
  • Established position as core non-ferrous metals company in Sumitomo Group.
  • Experienced litigation from the 1975 Toroku Arsenic Pollution Incident.
  • History of overcoming management crisis in the Tokaimura JCO Criticality Accident.
  • Highly evaluated as a materials manufacturer for diverse functional materials.
  • Focusing on advanced battery recycling technology through subsidiaries.
  • Conducts production at multiple overseas mines, with multinational management track record.
  • Possesses end-to-end supply chain from resource development to materials manufacturing.
  • Listed on Tokyo Stock Exchange Prime Market, a component of Nikkei 225.
  • Achieves high profitability through logistics and smelting efficiency.
  • Battery materials business expected to grow with EV expansion.

Hidden Connections

  • Its main resource copper is used in battery materials for major automakers like Toyota.
  • As a Sumitomo Group member, builds strong partnerships with financial and trading affiliates.
  • Has established JVs with multiple multinational companies in domestic and overseas mine projects.
  • Has track record of technical collaborations with Murata Manufacturing and Shin-Etsu Chemical in electronic materials.
  • Built sustainable operations based on lessons from past environmental litigation.
  • Diverse business figures involved including Sumitomo Life, Mitsui Trust Bank, JP Morgan Securities.
  • Adopted as constituent of Nikkei 225 and JPX-Nikkei 400 Index.
  • Owned the former Sumitomo Besshi Mine Railway, contributing to mine area development.

Future Outlook

Growth Drivers

  • Expansion of battery materials demand due to electric vehicle adoption
  • Sales growth from rising resource prices domestically and internationally
  • Stable operation start of overseas mine projects
  • Technology development responding to stricter environmental regulations
  • Expansion of high value-added products in functional materials field
  • Improved corporate evaluation through accelerated sustainability investments
  • Commercialization and market expansion of battery recycling technology
  • Synergy creation through strengthened ties within Sumitomo Group
  • Enhanced competitiveness via talent acquisition and organizational strengthening
  • Cost reductions through energy-saving technology introduction
  • Productivity improvements via DX promotion
  • Strengthened sustainable resource development initiatives

Strategic Goals

  • Achieve 30% domestic and international share in battery materials business
  • 50% reduction in greenhouse gas emissions
  • 20% sales ratio from recycling business
  • Risk reduction through multinational diversification of overseas mine interests
  • Launch 30 new products in functional materials field
  • Improved CSR evaluation through strengthened community coexistence
  • 30% improvement in operational efficiency via digital technology
  • Maintain zero safety accidents in workplace environment
  • Enhanced supply chain transparency and sustainable procurement
  • Achieve over 20% ratio of female managers

Business Segments

Resource Development Business

Overview
Business that stably supplies non-ferrous metal resources through mine development domestically and internationally.
Competitiveness
Abundant resource holdings and overseas expansion capabilities
Customers
  • Automakers
  • Electronics Manufacturers
  • Materials Processing Companies
  • Metal Trading Companies
Products
  • Mine Development
  • Metal Concentrate Supply
  • Resource Exploration

Smelting Business

Overview
Smelts various non-ferrous metals and supplies them to various industries.
Competitiveness
High-efficiency smelting equipment and processing technology
Customers
  • General Manufacturing
  • Semiconductor Industry
  • Battery Manufacturers
  • Chemical Manufacturers
Products
  • Gold, Silver, Copper Bullion
  • Platinum Group Metals
  • Nickel Products
  • Zinc & Lead Products

Functional Materials Business

Overview
Business that supplies high-function materials for electronics and construction fields.
Competitiveness
Materials development capabilities and diverse application fields
Customers
  • Electronic Component Manufacturers
  • Auto Parts Manufacturers
  • Building Materials Manufacturers
  • Chemical Manufacturers
Products
  • Electronic Powder Materials
  • Catalyst Products
  • Functional Cements
  • Packaging Materials

Battery Materials Business

Overview
Holds top-class domestic share in production of battery materials for EVs.
Competitiveness
Stable supply of high value-added materials
Customers
  • Electric Vehicle Manufacturers
  • Secondary Battery Manufacturers
  • Electronics Manufacturers
Products
  • Cathode Materials
  • Battery Additives
  • Nickel-Cobalt Mixtures

Environment & Recycling Business

Overview
Business focused on recycling metal resources and reducing environmental impact.
Competitiveness
Advanced recycling technology and regulatory compliance
Customers
  • Waste Treatment Companies
  • Manufacturing Companies
  • Local Governments
Products
  • Metal Recycling
  • Waste Treatment Solutions

Energy-Related Business

Overview
Provides products for the energy industry such as sulfuric acid business.
Competitiveness
Stable production facilities and technological capabilities
Customers
  • Power Generation Companies
  • Energy Equipment Manufacturers
Products
  • Sulfuric Acid Manufacturing
  • Electrolytic Products

Competitive Advantage

Strengths

  • One of the world's largest non-ferrous mine resource holdings
  • Integrated supply chain management
  • High smelting technology and product quality
  • Strong market share in automotive battery materials
  • Extensive international overseas project experience
  • Abundant resource development know-how and technology
  • Diverse materials development capabilities and applications
  • Historical trust of the Sumitomo Group
  • Thorough environmental measures and safety management
  • Broad business portfolio
  • Robust R&D investment structure
  • Strong customer base and partnerships
  • Stable financial foundation
  • Numerous mining and smelting bases domestically and internationally
  • Global supply chain network

Competitive Advantages

  • High price competitiveness due to domestic largest-scale non-ferrous mine resources
  • Strong transaction relationships with major automakers in battery materials
  • Integrated system from mine development to smelting and materials manufacturing
  • Risk diversification through diverse mine projects in countries worldwide
  • High development capabilities for high value-added products in functional materials and electronic components
  • Solid credit based on Sumitomo Group brand and stable management
  • Long track record in environmental and safety regulatory compliance
  • Promoting materials technology innovation through advanced research labs
  • Advanced in-house logistics and quality control systems with established traceability
  • Market fluctuation resilience through diversified business
  • Differentiation from competitors by focusing on high value-added product development
  • Pursuing regional adaptation and growth opportunities via overseas investments and JVs
  • Aggressive investments enabled by stable cash flow
  • Highly rated by ESG investors due to strong environmental awareness
  • Enhanced competitiveness through energy-saving manufacturing processes

Threats

  • Impact on earnings from international resource price fluctuations
  • Strengthening of environmental regulations on mining and smelting
  • Market changes from technological innovations in new materials or substitutes
  • Geopolitical risks and political changes in mine development
  • Delays and cost increases in overseas projects
  • Risk of loss of social trust due to safety management deficiencies
  • Intensifying competition in battery materials market
  • Cost and revenue fluctuations from exchange rate changes
  • Friction and litigation with local communities from resource extraction
  • Supply chain disruption risks
  • Difficulty securing talent due to declining labor population
  • Aging of resource extraction equipment and increased renewal costs

Innovations

2023: Battery Materials Recycling Technology Development

Overview
Revolutionized recycling technology from used batteries to promote resource circulation.
Impact
Succeeded in improving recycled raw material quality and reducing manufacturing costs.

2022: Introduction of High-Performance Sulfuric Acid Manufacturing Process

Overview
Introduced new sulfuric acid manufacturing technology to reduce environmental impact.
Impact
Achieved 20% reduction in CO2 emissions.

2021: Participation in New Mine Development Project (Chile Quebrada Blanca Mine)

Overview
Acquired interests in one of the world's leading copper mines to strengthen production base.
Impact
Enables stable supply with increased copper resources.

2020: Expansion of High-Function Electronic Materials Development

Overview
Advanced research and development of new powders and catalyst materials.
Impact
Secured new orders from electronic component manufacturers.

2024: Mass Production of High Energy Density Battery Materials for EVs

Overview
Started large-scale production of next-generation battery materials.
Impact
Market share expansion and strengthened revenue base.

Sustainability

  • Promotion and expansion of battery materials recycling business
  • Reduction of greenhouse gas emissions in mining and smelting
  • Environmental protection activities through collaboration with local communities
  • Sustainable resource procurement in supply chain
  • Strengthening of occupational safety and health management systems and employee training