jx_en_ar_in_fy2013_10
Transcript of jx_en_ar_in_fy2013_10
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Revenue and Expense Structure of Copper Smelters
The cost of copper concentrate, which smelting and refining companies pay to mining companies, is the LME copper cathode price less TC/RC,
which are smelting and refining margins. TC/RC under long-term contracts are normally determined through annual negotiations. The actual sales
price of copper cathode produced by copper smelters is the LME price plus a sales premium, which is established by reference to various factors,
including importation costs and quality.
Flowchart from Mining to Smelting and Refining
The method of processing copper ore differs according to the type of ore (sulfide copper ore or oxide copper ore).
Pyrometallurgical method (sulfide copper ore)
Coppercathode
(electrolyticcopper)
Cu: 99.99%
Copper mine Copper smelter
Sulfide copper ore
Cu2S, CuFeS2
Cu: about 1.0%
Copper concentrate
Cu: 30.0%
S: 30.0%
Fe: 30.0%
Smelting (flash furnace 65.0%)
Converting (converter 99.0%)
Refining (anode furnace 99.3%)
MiningElectrolytic
refining
Crushing,Grinding,Flotation
Scrap
Hydrometallurgical method (SX-EW* method) (oxide copper ore) * Solvent Extraction-Electrowinning
Coppercathode
(electrolyticcopper)
Cu: 99.99%
Copper mine
Oxide copper ore
CuO, Cu2O
Leaching(sulfuric acid leaching)
Solvent extraction(extraction of copper ions)
MiningElectrolytic
refiningCrushing
Earnings structure of copper smelter and refinery Movement in TC/RCLME copper
cathode priceCopper cathode
sales price
Sales premium($denominated)
Cost of copperconcentrate
TC/RC($denominated)
Share ofcoppersmelter
Share ofmining
company
Cost of copperconcentrate
($denominated)
0
100/10
80/8
90/9
70/7
60/6
50/5
40/4
30/3
20/2
10/1
2007 2008 2009 2010
*
2011 2012 2013(CY)
(TC/RC)
* Smelting and refining margin at the end of 2010 comprises multiple agreements in accordance withcontract counterparties, contract periods, etc.
TC (Treatment Charge): Dollars per ton of copper concentrateRC (Refining Charge): Cents per pound of copper contained in copper concentrate
About the Copper Business
22 JX Holdings, Inc.
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Principal Products and Applications of Electronic Materials
Applications of electronic materials products in smartphones
Electronic materials made from copper are indispensable in advanced electronic devices, such as smartphones, tablets, and PCs. Global demand is
increasing due to technical innovation and to economic growth in emerging countries. The JX Group is one of the worlds leading vendors for suchproducts as sputtering targets for semiconductors and flat panel displays, treated rolled copper foil for flexible printed circuit boards, and precision
rolled products, which are primarily used as connector materials. On a base of processing technologies developed over many years, the Group is
working to develop innovative technologies.
End-use applications
Principal electronicmaterials products
JX Groupsglobal share(as of 2012)
Primaryapplications
PCsMobile
phones /Smartphones
Digitalequipment /Audiovisualequipment
Telecommu-nications
infrastructureAutomobiles
Treated rolled copper foil 70%(No. 1)
Flexible printedcircuit boards
Target materials
Semiconductortargets
60%
(No. 1)
CPUs, memorychips, etc.
ITO targetsfor flat panel
displays
30%
(No. 1)
Transparentelectrodes
HD mediatargets
50%
(No. 1)
HDD (hard diskdrives), etc.
Precision rolledmaterials
Phosphorbronze
20%
(No. 1)
Connectors,springs for elec-
tronic components
Corson alloy(C7025) 45%(No. 1)Lead frames,connectors
Titaniumcopper alloy
70%
(No. 1)
High-classconnectors, etc.
In-P compound semiconductors50%
(No. 1)
Optical communi-cation devices,high-speed IC
IT-related
The JX Groups electronic materials products
Autofocus camera modules
Flexible printed circuit boards
Micro SIM /SD card connectors
Lithium-ion batteries
Battery terminals
Ground contacts
Earphone jacks
Board-to-board connectors
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About Recycling and Environmental Services
Flowchart of recycling and environmental services
Producer
Recycled materials
Industrial waste Collection Receipt Slag
Collection Receipt
Analysis
Pretreatment
Metal recovery
Copper /Precious metals
Declining amountof metals contained
in materials
Intensifyingcollection
competition
Principal recycled materials
Electronic componentscraps (connectors)
Electronic componentscraps (semiconductorpackages)
Punched scrap(gold-plated brass)
Discarded mobilephones
Discarded printedcircuit boards
About the Copper Business
Intensifying worldwide competition for natural resources and the necessity to reduce the environmental burden have led to the increasing impor-
tance of recycling metal resources. However, in recent years a rising number of electronic component companies have shifted their operationsoverseas, and there has been a trend toward the reduced use of metals. These factors have reinforced the trend toward a lower volume of recycled
materials generated in Japan. Accordingly, we are increasing the collection of recycled materials overseas and differentiating our operations,
including the detoxification processing of industrial waste.
Flowchart of complete detoxification processing for low-concentration PCB waste
Rotary kiln incinerator
Waste, including low-concentration PCB(insulation oil, etc.)
Waste, includinglow-concentration PCB
(chassis from transformers, etc.)
Wash tower Stack
Electrostaticprecipitator
Detoxified gas
Fixed bed furnace
Secondaryincinerator
Quenchtower
Bag filter
After disassembly, chassis are recycled intocopper, steel, aluminum, etc., at smelters, etc.
Detoxification of WasteCHECK
PCBs (polychlorinated biphenyls) are materials that provide excellent electrical insulation and are principally used in insulation oil in trans-
formers and capacitors. Due to the harmful nature of PCBs, their manufacture or import is currently prohibited. In Japan, there are only seven
bases, including the JX Groups bases, that can detoxify not only insulation oil that directly contains PCBs but also chassis that used that type
of oil. The processing capacity is not suffi cient for the volume of waste. Moving forward, the JX Group will work to expand and differentiate
its detoxification processing operations.
Detoxificationprocessing
24 JX Holdings, Inc.