P.72 Mineral Resources Group

72 03. Performance & Data

Mineral Resources Group

Through mineral resource development and the construction of its value chain, we will provide value that is unique to us and contribute to the development of industry and the realization of a sustainable society in Japan and around the world, thereby creating an enriched future for all.

Main relevant material issues Koichiro Yazaki Group CEO, Mineral Resources Group

▍Quantitative information

• 1,000　750　500　250　0
• 15　10　5　0

FY2025 Investment｜Approx. ¥15.0 billion

Main investment areas

• Upstream and midstream interests in non-ferrous metals,

steel making raw materials, fuel for power generation, carbon products, etc.

Major asset replacement

• Details not disclosed

▍External Environment: Business Environment

Opportunities

• The global trend of energy transition
• Shifting demand driven by decarbonization and the transition to a circular economy
• As mineral resource development becomes increasingly complex,

opportunities to provide our capabilities are expanding, leading to greater chances to participate in new projects

Risks

• Rising geopolitical risks are driving changes in supply-demand structures and increasing mineral resource price volatility
• Increasing complexity in mine development is leading to higher development risks and rising development and operational costs

▍Internal Environment: Key Strengths

• Extensive experience and expertise gained through operating and managing complex mining projects as an operator
• Highly competitive and high-potential business assets
• Offering customized trading solutions across a wide range of market commodities,

including derivatives

• Robust partnerships, strong industry networks, and a global customer base

▍Business Strategy

• Leverage our strengths and enhance our capabilities to expand the earnings base through engagement in copper and other projects in collaboration with partners, in anticipation of growing demand
• Advance our trading capabilities by leveraging our expertise in commodity derivatives, while pursuing integrated upstream, midstream, and downstream business development through a market-in approach, underpinned by our diverse and high-quality customer base
• Build business value chains that contribute to addressing key social challenges, such as decarbonization and the realization of a circular economy

▍Business Development

• Handling of non-ferrous metal raw materials and products, aluminum, iron ore, coal, and carbon-related raw materials and products
• Business operations throughout the entire value chain, from upstream to midstream and downstream

Upstream business:

Mine development and operation

• Copper
• Gold
• Silver, lead, and zinc
• Aluminum
• Coal
• Iron ore
• Uranium
• Manganese
• Carbon

Midstream/downstream businesses:

Trading, manufacturing, and processing

• Trading
• Manufacturing/processing

▍Medium-Term Management Plan 2026

Initiatives in final year of medium-term management plan

• Maintain stable earnings from our core mining operations even amid resource price volatility, with manufacturing and trading businesses providing support and demonstrating the resilience of our portfolio
• Relentlessly pursue safe and stable operations and cost competitiveness aimed at maximizing the value of core assets; enhance the stability of our earnings base through agile reviews and capital allocation

Initiatives for next medium-term management plan

• Continue maximizing the value of existing assets,

sharpen the Groupʼs distinctive strengths, and selectively capture investment opportunities that support future growth

• Continue creating earnings opportunities through manufacturing and trading while leveraging digital technologies and AI to enhance the quality of decision-making to deliver stable value creation in a rapidly changing environment

▍Key Market Trends

In addition to ensuring a stable supply of raw materials and products that support industry in response to market needs, we leverage derivatives to capture price differentials across markets and time horizons, thereby supporting key market functions such as price discovery and liquidity. Against the backdrop of sustained demand growth and supply constraints, we are also strengthening our business foundation by expanding our equity interests, particularly in copper and other mineral resources that are expected to face tightening supply-demand balances over the medium to long term.

Delivering resources to support markets

SCGC and SCMI (e.g., derivatives trading, precious metals trading) Quebrada Blanca copper mine (Chile) Press Metalʼs aluminum smelters (Malaysia) Assmang iron ore and manganese mining business (South Africa) High-Performance Overhead Transmission Conductors with Carbon Fiber–Reinforced Plastic（ CFRP） Core Technology (France)* Cerro Verde copper mine (Peru) Mineracao Usiminas iron ore mine (Brazil) * Source: Epsilon Composite

Widening copper supply–demand gap

Production from new projects with a high probability of development Copper demand Supply–demand gap Production from existing projects