Mining Business

• Overview
• The Sustainability Action Plan
• Management of Mines in Operation
• Mine Closure Plan
• Management of Suspended and Closed Mines
• Water Management
• Tailings Dams Management
• Use of Security Companies
• Relationships with the Local Communities

Overview

Mitsui Kinzoku has started mine operations in Kamioka area, Gifu prefecture in 1874, and ever since, we have been in the mining business for over 150 years. In Republic of Peru, we currently have our own developed mines in operation: the Huanzala Mine and the Pallca Mine operated by Compania Minera Santa Luisa of Mitsui Kinzoku Group. It has been over 50 years since the Huanzala mine started its operation in 1968. The Pallca Mine was developed as a branch of the Huanzala Mine in 2006.

In Japan, most of the mines have suspended or terminated operation due to resource depletion.

Sustainability Actions in Mining Business（The Sustainability Action Plan）

We recognize that the mining business has a particularly large impact on the surrounding environment and the local communities. Based on this recognition, we identify environmental and social issues related to our mining business and implement focused measures.

In FY2020, we formulated the Sustainability Action Plan for Mining Business. Based on our materiality, we identified risks related to mining pointed out in the basic principles of ICMM and by SASB for each mining site and consolidated those risks into priority initiatives. In the mining business management, we conduct progress control annually in order to achieve the KPIs stipulated in the action plan. 

Summary of Progress in FY 2022

While the plans were generally conducted as scheduled at sites in Japan, some plans were carried over to FY2023 at sites in Peru due to Covid-19 and other factors.

Item	Commitment	Related SDGs	Targets （KPIs）	Plans for FY2023
Mining business management (ESG risk management frameworks)	Reduce ESG risks specific to the mining business through appropriately managing materiality items	G3,G4,G6,G7,G8,G9, G12,G13,G15,G16	1. Implement the Sustainability Action Plan for Mining Business at mining sites (including closed mines) 2. Survey the operating mines with a capital ratio of >50% about human rights and environmental risk of mining business	1.Check the progress of FY23 initiatives and follow up on them. Verify the plan for FY24 2. Review FY22 survey results and consider corrective actions
GHG emissions	1. Afforestation around the tailings dam (Japan） 2. Soil preparation for afforestation at the former open-pit mining site (Japan）	G13,G15	1. Afforestation of the total area of 1,000 of the Akeshi Mine by 2023 - Afforestation of the total area of 2,000㎡of the Akeshi Mine by 2025 2.Improvement of soil at the former open-pit mining site of the Kamioka Mine for afforestation	1.Consider additional afforestation areas aiming to achieve the FY2025 target* 2. Add soil and plant grass on a continuous basis
Energy management	Consideration of introducing renewable energy (Japan）	G7,G13	Completion of investigations for construction of a hydroelectric power plant	Conduct economic evaluations for building a solar power station (Peru)
Water management	1. Acid Mine Drainage Acid Mine Drainage (Peru） 2. Water recycling - Improve water recycling rate (Peru） - Promotion of mining water recycle (Japan） 3. Suspended and closed mines Appropriate management of environmental risks of suspended and closed mines (Japan	G6,G15	1. Implementation of measures to prevent surface water from permeating  - Development of a plan to improve water recycling rate - 80% solution in industrial water shortage and 27% reduction in wastewater quantity ３．Zero environmental accidents	1.  - Work with hired consultants to conduct hydrogeological surveys  - Locate surface water inflow areas  - Create a clean/contaminated mine water separation plan   2.Conduct recyclable water quality assessments, and examine availability - Develop a facilities plan - Start to identify amounts of water - Manage sedimentation basin in the mine and collect contaminated water from Maruyama site   ３． - Continued management of water level in the mine - Completion of renewal of aging facilities as needed - Check the water level in the mine and maintain it
Waste and hazardous materials	1. Waste Implement a plan to reduce waste (Peru） ２. Tailings dam Strengthen management of tailings dam and minimize related risks (Peru/Japan）	G6,G12,G15	1. Implementation of a plan to reduce waste based on an analysis of types of waste generated 2. - Reinforcement and operation of a stability monitoring system - Completion of accident simulations  - Completion of compliance with new seismic resistance standards (700 gal) - Develop a risk minimization plan for tailings dam	1.Carry out reduction activities according to the plan  2. - Install monitoring equipment and start measurement (Peru) - Perform accident simulations (Japan) - Select consultants to perform accident simulations (Peru)
Impacts on biodiversity	Integrated Report Mitsui Kinzoku Group Sustainability Initiatives 08 Impacts on biodiversity
Health and safety	Strengthen dust control measures (Japan）	G3	Install a dust collector for weld fumes	- Standardize dust mask fitting tests - Consider installation of welding fume collector if necessary - Consider adding mist sprayers along with heat stroke countermeasures
Human rights	Establish a security guard system in accordance with the Human Rights Policy(Peru)	G17	Implement measures to establish a security guard system in accordance with the Human Rights Policy	Work with hired consultants to conduct business risk assessments in accordance with the Voluntary Principles on Security and Human Rights
Community engagement	Conduct activities based on community engagement and identify impact(Peru)	G3,G4,G7,G8,G9	Identification of impact on local communities	Decide on priority items; start conducting impact assessments

*The Akeshi Mine is constructing a new waste rock storage facility to manage it safely  and is cutting down trees and leveling of ground on the site.
Afforestation is proceeding as planned, and additional afforestation is being considered to achieve the 2025 target (KPI).

Management of Mines in Operation

The Huanzala Mine is situated in the Andes at an elevation of about 4,000 meters, and for more than half a century it has been producing zinc, lead, and copper concentrates, contributing to a stable supply of metal resources.

In Peru, the Environmental Law promulgated in 1993, which prescribes PAMA (the Environmental Adjustment and Management Program) as an obligation to existing mines in operation. The Huanzala Mine was the first mine in Peru to acquire PAMA in 1997. The mine completed environmental measures based on PAMA in 2008 and minimized impact on the environment.

In addition, the mine acquired the certification of ISO 14001 and OHSAS 18001 in 2008 and completed a transition from the 2004 version to the 2015 version of ISO 14001, and is currently ISO 45001:2018 certified.

Mine Closure Plan

Since mineral resources are limited, environmental management after mine closure is indispensable for maintaining the surrounding environment. However, quite a few mines had been abandoned and affected the environment in history.

We have drawn up closure plans of mines subject to applicable laws and guarantee or accumulate expenses for closure to minimize the environmental and social risk after closure.

The following items are defined as goals in the closure plan;
・Priority on preserving the environment and compliance with local laws and regulations
・Landform stabilization to prevent pollution and physical and chemical containment of emissions
・Development of a versatile closure plan that allows for introduction of technical innovation and new technologies
・Environmental restoration for utilization and conservation of the land after closure
・Implementation of management measures for the social, economic, and organizational development of the local communities affected by mine operations

In Peru, the Law of Mine closure was promulgated in 2003, which required mines in operation and mine development projects to submit a closure plan and to accumulate the closure costs based on the plan.

The Huanzala Mine conducted voluntary pre-survey in 2004 prior to the law enforcement and started assessing and developing a closure plan. The Pallca Mine also developed a mine closure plan. In 2009, both mines obtained government approvals for the closure plan and guarantee closure costs and have since renewed those approvals multiple times.

We have been conducting works for mine closure in advance at both mines, including removal of waste rock that causes acid water, closure of surface water intrusion routes, separation of mine drainage into contaminated and clean water, and soil-covering/planting at the waste rock deposition site. In addition, we regularly receive audits of these works by government agencies.

 

We implement works for mine closure in advance at the Huanzala Mine and the Pallca mine. We work on removal of waste rock generated in the past operation and soil-covering/planting grass at the Huanzala Mine
left：Before soil-covering/planting grass（Huanzala, 2007）　right：After (Huanzala, 2019）

Management of Suspended and Closed Mines

Mitsui Kinzoku continues environmental management of suspended and closed mines, in accordance with the Mine Safety Act, and applicable laws and regulations. Contact of rainwater with metal containing rock generates acid water containing heavy metals. In order to manage acid water and to prevent mine pollution, we conduct inspection tours and the checking of managed site, water quality monitoring in neighboring areas, and water purification by acid water treatment equipment.

Water Management

Tailings Dams Management

In the flotation process, slurry type wastes called tailings are generated. The facility to storage “tailings” is called “tailings dam”. In recent years, a series of dam collapses occurred in Brazil and Canada, and they have been considered as significant environmental and social issues. Mitsui Kinzoku Group regards the management of tailings dams as one of the major risks in the mining business and manages them in accordance with applicable technical guidelines and manuals.

Japan

Peru

The list of tailing dams managed by Mitsui Kinzoku Group

In June 2019, Mitsui Kinzoku disclosed information about abandoned tailings dams based on requests from the British Church Pension Committee and the Swedish National Pension Fund Moral Committee.
Information Concerning Tailings Dam management

Use of Security Companies

At some of our sites, we use security companies to protect the safety of employees. We are aware of the inherent risk to human rights related to the use of weapons for security.

Regarding the use of security personnel, we will comply with local laws and regulations and respect international principles such as the Voluntary Principles on Security and Human Rights, and establish a security system based on the Human Rights Policy of Mitsui Kinzoku Group.

We have contracted a consulting firm specialized in sustainability and ESG management services to conduct a business risk assessment in line with the Voluntary Principles on Safety and Human Rights at our site in Peru.

Relationships with the Local Communities

Compania Minera Santa Luisa strives to establish relationships of co-existence and mutual prosperity with the local communities.

In order to provide more effective community support, we have selected the pastoral support that we have been working on　for many years as a focused area and are now conducting an impact assessment.

The Huanzala mine and the Pallca mine have concluded regional assistance agreements with local governments in order to support local governments and residents. Compania Minera Santa Luisa has provided various community supports such as direct support for local communities and indirect support through infrastructure investment.

Biodiversity

Integrated Report Mining business [PDF：694KB]