By Yuka Obayashi
TOKYO (Reuters) -Japan’s JX Advanced Metals said on Friday it would invest 7 billion yen ($47 million) to boost pre-treatment capacity as it aims to increase the processing of recycled raw materials in its metals and recycling business.
Amid declining profitability in copper concentrate smelting, the company is considering scale-down options and promoting “green hybrid smelting,” which reduces reliance on copper concentrates while boosting the share of recycled feedstock.
With metal prices rising and global competition for recycled raw materials intensifying, stable procurement has become a challenge.
IMPROVING PROFITABILITY
To address this, JX, one of Japan’s top copper smelters with 450,000 metric tons of annual production capacity, will increase pre-treatment capacity, including a kiln, by 50% by fiscal 2027 to handle more materials requiring pre-treatment, such as low-grade e-waste, it said.
The investment is expected to improve profitability in the metals and recycling business while supporting copper resource circulation, which underpins renewable energy and electrification, JX said.
It cited solid demand for precious and rare metals recovered mainly from recycled raw materials in its advanced material businesses, including semiconductor and information and communication materials, noting that higher recovery volumes would strengthen these supply chains.
With some of these metals designated as critical minerals amid growing supply risks from producing nations, ensuring stable procurement is also of significant social importance, it added.
Japanese copper smelters are grappling with tumbling treatment and refining charges (TC/RCs) and shrinking margins due to tight concentrate supply and expanding smelting capacity in China.
JX President Yoichi Hayashi told Reuters earlier this month that the company would likely cut copper production by tens of thousands of tons in fiscal 2025 compared with earlier plans and unveil a roadmap to reduce smelting capacity by March.
($1 = 149.7900 yen)
(Reporting by Yuka ObayashiEditing by Mark Potter)
