Message to Shareholders

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About Us

Nittetsu Mining Co., Ltd. ("our company") was established after separating from the mining division of the former Japan Iron & Steel Co., Ltd. (presently, Nippon Steel Corporation) in 1939. The intention was to develop and steadily supply raw materials, such as coal, iron ore, and limestone, for steelmaking.

Since then, our company has prospered and expanded, while bearing a heavy responsibility for supplying raw materials to basic industries in Japan through the development of underground resources. Amid a revolution in the resources and energy sectors during a period of economic growth, our main operations have changed from coal to metal and limestone. Today, our company has established a unique position in the industry as a comprehensive resources corporation engaged in mine development both at home and overseas.

From now on, responding to social demand, we will make every effort to steadily supply these resources. At the same time that we are using the traditions and technologies accumulated over a long period, we will tackle the development of other technologies around mines, such as security and the development of new resources both at home and overseas; adding value to mineral resources; and consulting on mining and geology, among other activities. We will take further action to strengthen our business base as a comprehensive resources corporation in order to achieve further growth.

In addition, we will contribute to our shareholders, customers, and community by demonstrating the total strength of our company group and through the development of such businesses as machinery and other products centered on preserving the environment, as well as the real estate business, renewable energy, etc.

Business Results

During the fiscal year ended March 31, 2023, the Japanese economy showed some signs of recovery, such as the normalization of social and economic activities despite the impact of the new coronavirus infection, but the economy remained in a difficult situation due to soaring resource and energy prices caused by the prolonged situation in Ukraine and other factors, as well as monetary tightening in various countries that put downward pressure on global economic growth.

Under these economic conditions, the Nittetsu Mining Group's net sales increased 10.0% year on year to 164,020 million yen due to higher sales in the mineral resources business and the machinery and environmental business, among others.

As for profit and loss, operating income decreased 13.3% year on year to 13,632 million yen due to decreased profit in the mineral resources business and increased development and research costs for overseas copper mines, and ordinary income decreased 20.5% year on year to 13,204 million yen due to worsened investment income/loss by equity method.

On the other hand, net income attributable to owners of the parent increased 5.4% year on year to 9,780 million yen, due to a decrease in income taxes, in addition to the recording of a gain on the sale of stock holdings.

• Financial Highlights

Future Outlook

As for the future outlook, while the COVID-19 disaster is expected to be under control, risks such as the emergence of new mutant strains and the re-spread of infection still remain. In addition, the situation is expected to remain unpredictable due to soaring resource and energy prices caused by the situation in Ukraine, a worsening labor shortage, and high costs of materials procured overseas due to exchange rate fluctuations. In addition, the business environment surrounding the Group is undergoing significant changes, including structural reforms at steel manufacturers and the impact of government and private-sector initiatives aimed at realizing a decarbonized society.

In response to this business environment, the Group will strive to improve and strengthen its management structure by further enhancing sales, improving productivity, reducing overhead costs, enhancing the business continuity plan (BCP), and responding to the SDGs, as well as to strengthen and expand its business foundation to improve business performance and achieve a sustainable society. We will strive to improve our business performance and realize a sustainable society.

Furthermore, we will continue to fulfill our heavy responsibility of supplying raw materials to key industries in the future, and will promote sustainable growth and enhancement of corporate value over the medium to long term, and enhance corporate governance in order to contribute to shared prosperity with our stakeholders, including shareholders, business partners, local communities, and employees.

In addition, the Group is actively working to promote sustainability, and with the aim of becoming carbon neutral by 2050, we are improving the efficiency of our facilities, introducing energy-saving technologies, greening former mine sites, acquiring forest certification for company-owned forests, and generating electricity using natural energy. We will continue to engage in environmentally friendly business activities.

We extend our appreciation to all shareholders and ask for your continued support and cooperation.

June 2023

Reiichi Morikawa
Representative Director and President