JX Advanced Metals, a Japanese company, will increase the processing capacity of recycled material

JX Advanced Metals, a Japanese company that specializes in metals and recycling, announced on Friday its intention to invest $7 million to improve pre-treatment capabilities. The goal is to increase the amount of raw materials recycled for processing.

The company, which is experiencing a decline in profitability from copper concentrate smelting operations, is looking at scaling down options and promoting 'green hybrid smelting'. This reduces the reliance on copper concentrats while increasing the use of recycled feedstock.

Metal prices are rising, and the global competition to recycle raw materials is intensifying. Stable procurement has become more difficult.

IMPROVING PROFITABILITY

JX, a top copper smelter in Japan with 450 000 metric tons annual production capacity will increase its pre-treatment capacity by 50%, including the addition of a kiln by fiscal 2027, to accommodate more materials that require pre-treatment such as low grade e-waste.

JX stated that the investment will improve profitability for metals and recycling businesses while also supporting copper resource circulation which is essential to renewable energy and electric vehicles.

It noted that the demand for precious metals and rare materials recovered from recycled materials was strong in its advanced materials businesses, which include semiconductors and information and communications materials. Higher recovery volumes could strengthen these supply chain.

It added that, with some of these metals being designated as critical minerals, and the growing risks of supply from producing countries, ensuring stable acquisition is of great social importance.

Due to a tight supply of concentrates and growing smelting capacity, Japanese copper smelters face tumbling treatment charges and refining costs (TC/RCs), as well as shrinking margins.

JX President Yoichi Haashi said earlier this month that JX would likely reduce copper production by thousands of tons compared to earlier plans in fiscal 2025 and reveal a roadmap for reducing smelting capacities by March.

(source: Reuters)