Mitsubishi Materials Corporation

Geopolitical and Geoeconomic Risks

Building a Procurement Portfolio of Copper Concentrates, E-Scrap, and Other Raw Materials

Copper concentrate and E-Scrap

While the majority of copper concentrate, the main raw material in copper products, is imported from South America such as Chile and Peru, there are potential supply risks due to the decline of promising mines and other factors. Mitsubishi Materials Corporation will secure supplies of copper concentrate through strategies including the participation in new medium-sized copper mines, while also increasing its procurement of scrap materials and phasing in capital expenditures at the Naoshima smelter & Refinery and Onahama smelter & Refinery to handle the increase in scrap volume. In addition, to bolster the collection of scrap materials, we will maintain and strengthen ties with recyclers, investigate and explore possibilities such as the set up of relay yards and sampling sites, and strive to build a resource recycling loop utilizing home appliance recycling plants.

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Other Raw Materials

The Procurement & Logistics Department is working to enhance supply chain management to mitigate procurement risks such as supply disruptions due to natural disasters, operational incidents at suppliers, pandemics, geopolitical risks and other incidents. The specific initiatives we are pursuing are summarized below.
We will identify key components and materials that could have a significant impact on our operations and strengthen the management of related supply chain information. By managing information on a new procurement system to be introduced from the second half of the fiscal year ending March 2025, we will achieve the centralized management and visualization of information, and also enable the two-way management of information with suppliers.
Additionally, in the event of an emergency involving the materialization of risks such as natural disasters, the system is designed to automatically alert supplier representatives. As this will enable us to confirm whether there are supply disruptions in the supply chain and gather information faster than before, it will enable us to implement swift and effective measures from the early stages of a crisis.
In conjunction with these efforts, we will conduct risk assessments of key components and materials and clarify response policies based on risk ranks. By securing alternative supply sources and implementing appropriate management to secure safe inventory levels based on these rankings, we will take efforts to ensure stable operation and maintain the steady supply of products to a higher level.

MMC, MBS, DFF Inc., Trans-Asia Inc., ideaship Inc., KPMGあずさサステナビリティ

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