The Mining Industry of Japan Is Made up of a Small Non-Ferrous Metal Mining Sector and a Large World-Class Minerals Processing Sector
Total Page:16
File Type:pdf, Size:1020Kb
TheThe MiningMining IndustryIndustry ofof JapanJapan METAL MINING AGENCY OF JAPAN Mineral Resources Information Center 34 MT Bldg., 1-25-5 Toranomon, Minato-ku, Tokyo JAPAN 105-0001 Tel: (81) 3 5512 1418 Fax: (81) 3 3593 9410 E-mail: [email protected] Contents Overview 1 Supply & demand of non-ferrous metals 2 Major metal smelters & refineries 12 Major metal mines 14 Major metal prices/stocks 15 Key sector contacts 16 Mineral Resources Information Center (MRIC) The Mineral Resources Information Center (MRIC) was established as a department of the Metal Mining Agency of Japan (MMAJ) in 1968. The MRIC collects, distributes and analyzes information related to nonferrous metal resources exploration and development in both Japan and around the world, on topics such as developments in the world mining industry, geological data, supply & demand statistics, mining law and mineral investment. This information is made publicly available in reports and on the Internet. The MRIC also organizes conferences and seminars on mining-related issues, and administers the MMAJ’s 10 Overseas Offices. For further information on the MRIC and its various publications, please access the MMAJ’s Internet homepage at: http://www.mmaj.go.jp Cover Photo: A gold-silver bearing quartz vein at the Hishikari Mine (courtesy of Sumitomo Metal Mining) Published in December 2002 TheThe MiningMining IndustryIndustry ofof JapanJapan Overview The mining industry of Japan is made up of a small non-ferrous metal mining sector and a large world-class minerals processing sector. In 1970 there were 246 operating metal mines employing 34,000 people. In June 2001 Kamioka mine (Pb,Zn) was closed, so the above number has dwindled to 14 operating mines, among which the most significant ones are Toyoha (Pb,Zn) and Hishikari (Au,Ag), employing about 400 people in total. In contrast, Japan has developed a large-scale custom smelting sector to supply domestic and overseas manufacturing industries. A large portion of copper, lead, zinc and nickel ores, as well as primary aluminium are imported from overseas. SUPPLY & DEMAND OF NON-FERROUS METALS IN JAPAN In 2001, domestic production of lead, zinc, copper and nickel slightly decreased by 3%, 1.5%, 0.8% and 4.3% respectively compared to the previous year. It was mainly because some lead and zinc smelters implemented maintenance works while some copper smelters faced difficult situation of concentrate feed. However, the historical low price of copper compelled major producers in Japan to declare reduced production in 2002 in harmony with the major mining houses in the world. Also, domestic consumption of these metals largely decreased by 5.4%, 6.2%, 14.8% and 21% respectively compared to the last year in the because Japanese economy slowed down in 2001, especially later half of the year. Above all, the IT (Information Technology) recession affected a lot to the consumption of nickel, copper and zinc. In contrast copper export temporarily jumped up in 2001 because of the sustainable demand in the Asian region. CURRENT TOPICS In the 1990’s Japanese companies actively materialized equity participation in large mines development mainly in Chile and Indonesia in order to secure stable supply of metal concentrate. This trend still advanced in the recent years. Antamina mine in Peru kicked off its concentrate production in June 2001. Also, Sumitomo Metal Mining and others decided to join Rio Tuba nickel project in Philippines in order to obtain mixed sulfide to be refined, which would be generated with the latest hydrometallurgical technology. The only project, of which a Japanese company took majority, is Atakama Kozan operated by Nittetsu Mining in the Atakama desert of Chile. The mine finally started its production of copper concentrate in November 2002. However, recent trend of low metal prices cast shadows across overseas activities by Japanese companies. Rey de Plata mine in Mexico suspended its operation due to low lead and zinc prices. Also, Los Pelambres and Escondida, the both are giant copper mines in Chile partially invested by Japanese companies, reduced production from the beginning of year 2002. On the other hand, Japanese smelting companies planned to increase capacity of their overseas smelters such as Onsan in Korea, Gresik in Indonesia, Jinlong in China and Port Kembla in Australia so that they could strengthen their competitiveness. In the circumstances of such low metal prices due to the uncertain world economy the major mining houses developed further their M&A strategy; thus, the Japanese mining industry is also required to seek for effective operations. Following the alliance between Nippon Mining & Metals and Mitsui Mining & Smelting in copper industry, Sumitomo and Mitsui decided to form alliance in zinc industry. Such an alliance among the industry is expected to proceed further in coming years. The following brochure provides an overview of the current state of the Mining Industry of Japan. 1 Supply and demand of Non-ferrous Metals Refined Copper Supply Demand Production Domestic Demand ( Domestic Ore Imported Ore Others ) ( Wire & Cables Wrought Copper Others ) Imports Inventory at start of period Exports 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 2,000 1,500 1,000 500 0 0 500 1,000 1,500 2,000 ('000t) ('000t) 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 JAPAN ('000t/y) Supply Total 1,662.2 1,702.7 1,632.6 1,720.5 1,758.8 1,745.6 1,696.7 1,721.8 1,729.7 1,671.1 Inventory at start of period 130.8 150.3 158.5 143.3 147.5 113.5 146.0 150.1 89.4 89.3 Production 1,160.9 1,188.8 1,119.2 1,188.0 1,251.4 1,278.7 1,277.4 1,341.5 1,437.4 1,425.7 from: Domestic Ore 7.9 5.6 2.4 1.0 0.8 0.4 0.8 0.9 1.0 0.4 Imported Ore 1,038.3 1,093.5 1,023.1 1,080.2 1,139.7 1,156.9 1,148.5 1,214.3 1,289.1 1,286.8 Others 114.7 89.7 93.7 106.7 110.9 121.4 128.1 126.3 147.3 138.5 Imports 370.5 363.6 354.9 389.3 360.0 353.5 273.3 230.1 202.9 156.1 Demand Total 1,616.3 1,639.4 1,621.1 1,679.5 1,685.4 1,665.8 1,653.7 1,591.4 1,646.3 1,515.9 Domestic Demand 1,516.3 1,480.2 1,506.6 1,520.8 1,520.8 1,508.2 1,360.8 1,272.5 1,347.0 1,099.9 for: Wire & Cables 1,037.6 997.6 988.6 997.6 1,022.1 1,019.8 893.3 791.5 843.6 706.4 Wrought Copper 455.9 462.7 497.3 502.1 479.2 469.3 450.0 460.7 473.9 371.8 Others 22.7 20.0 20.7 21.1 19.4 19.0 17.4 20.3 29.4 21.7 Exports 100.0 159.2 114.4 158.7 164.6 157.7 292.9 318.9 229.4 416.0 Inventory at end of period 150.3 158.5 143.3 147.5 113.5 146.0 150.1 89.4 89.3 70.9 WORLD ('000t/y) Production 11,169.8 11,306.3 11,166.2 11,829.4 12,756.4 13,599.3 14,141.6 14,462.8 14,813.7 15,544.5 Consumption 10,761.2 10,971.7 11,639.2 12,167.3 12,414.4 13,080.2 13,339.0 14,023.5 15,103.9 14,561.5 Source: Yearbook of Minerals & Non-ferrous Metals Statistics, METI World Metal Statistics, WBMS 2 Refined Lead Supply Demand Production Domestic Demand ( Domestic Ore Imported Ore Others ) ( Batteries Inorganic Chemicals Others ) Imports Inventory at start of period Exports 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 400 300 200 100 0 0 100 200 300 400 ('000t) ('000t) 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 JAPAN ('000t/y) Supply Total 352.2 341.0 325.9 330.2 306.2 294.0 282.6 273.2 287.3 291.5 Inventory at start of period 30.8 40.8 37.8 28.3 48.2 33.4 27.6 32.2 23.4 18.3 Production 270.3 258.1 234.3 226.6 224.7 228.0 227.6 227.1 239.4 236.0 from:Domestic Ore 29.1 28.4 19.2 8.9 10.1 8.2 6.8 6.9 8.7 5.7 Imported Ore 189.7 183.8 162.5 139.2 130.4 134.1 137.8 118.6 120.8 121.7 Others 51.5 46.0 52.5 78.4 84.2 85.6 83.0 101.6 109.9 108.7 Imports 51.2 42.1 53.9 74.8 33.3 32.6 27.4 13.8 24.5 37.2 Demand Total 310.8 289.9 273.5 275.5 272.5 272.3 253.4 244.6 252.7 244.4 Domestic Demand 307.3 282.7 273.0 274.3 271.4 272.2 252.3 240.3 251.2 243.7 for: Batteries 200.0 180.1 179.1 187.8 187.7 190.3 182.7 177.2 185.7 184.2 Inorganic Chemicals 62.3 59.0 50.4 45.8 41.0 38.4 32.3 33.1 33.2 29.3 Others 44.9 43.6 43.5 40.7 42.7 43.5 37.3 29.9 32.2 30.1 Exports 3.6 7.2 0.5 1.2 1.1 0.1 1.1 4.4 1.6 0.7 Inventory at end of period 40.8 37.8 28.3 48.2 33.4 27.6 32.2 23.4 18.3 37.7 WORLD ('000t/y) Production 5,367.9 5,396.1 5,382.6 5,588.8 5,784.8 5,970.1 5,957.5 6,332.3 6,736.9 6,701.7 Consumption 4,928.6 5,073.9 5,183.1 5,597.1 5,758.3 6,044.2 6,081.6 6,144.0 6,388.2 6,433.5 Source: Yearbook of Minerals & Non-ferrous Metals Statistics, METI World Metal Statistics, WBMS 3 Refined Zinc Supply Demand Production Domestic Demand ( Domestic Ore Imported Ore Others ) ( Galv.