Nittetsu Mining Co., Ltd.

Torigatayama Mine is one of Japan's largest limestone mines, producing high-grade limestone at an annual scale of 13,500 thousand tons. Located on the Pacific coast, it possesses shipping facilities capable of handling large vessels of up to 60,000 tons, enabling overseas exports (overseas sales of ¥7,254 million) to Taiwan, Australia, Hong Kong, and other destinations. This logistics infrastructure constitutes a unique competitive advantage that competitors would find difficult to replicate in the short term.

Atacama Mine has continued full-scale operations since 2003, and achieved an extended useful life (resulting in a decrease of ¥1,228 million in depreciation expense due to a change in accounting estimate) reflecting an increase in mineable reserves. The company holds multiple development pipelines, including the Alcaparrosa Mine (expected to commence operations around summer 2026) and the Oracle Ridge project in Arizona, USA (entry in April 2026), building a framework for continuously securing copper resources.

The real estate business boasts extremely high profitability, with sales of ¥4,746 million against operating profit of ¥3,318 million (operating margin of 69.9%). In addition to stable cash flow from rental income, the business also benefited from sales opportunities in real estate held for sale, which boosted performance (sales increased 65.1% year on year in FY2026 (ending March 2026)). It functions as a stable earnings source within the portfolio, mitigating the risk of market fluctuations in the resources business.

A copper mine development project that began with initial exploration in 2011. Although increases in development costs and delays in the operation start timing have occurred, the project has reached its final stage, with operations expected to commence around summer 2026. The borrowing limit was increased to secure additional funding. Following the start of operations, earnings contribution is expected from a substantial expansion in copper production volume.

Based on a resolution of the Board of Directors on April 20, 2026, the company acquired an 80% interest in Wedgetail Operations LLC (copper mine development) through Nittetsu Mining USA LLC, making it a sub-subsidiary. An entry agreement was concluded with Eagle Mountain Mining (Australia), and a capital increase of USD 3.5 million was carried out. This expands the resource portfolio in preparation for securing future copper resources.

The company is advancing the establishment of a joint venture with a local firm for the manufacture and sale of Polytetsu (a lime-based product) in Taiwan, as well as concretizing plans to expand stockpile facilities. Overseas sales expanded from ¥6,683 million in the previous fiscal year to ¥7,254 million in the current fiscal year. Through the development of overseas markets centered on limestone and Polytetsu, the company aims to diversify earnings away from dependence on domestic demand.

ROIC-based management was introduced under the Third Medium-Term Management Plan to improve capital efficiency. The company has reviewed its policy on reducing policy-held (cross-shareholding) shares and carried out share buybacks (a stock split of 1 share into 5 shares was implemented in October 2025). Investment securities increased from ¥39,161 million in the previous fiscal year to ¥49,870 million in the current fiscal year, indicating limited progress on reduction.

Shirasuigoe Geothermal Co., Ltd. was made a consolidated subsidiary, advancing surveys and studies for a geothermal power generation business in the Shirasuigoe area of Kirishima City, Kagoshima Prefecture. Power generation volume increased from 174 thousand MWh in the previous fiscal year to 212 thousand MWh in the current fiscal year (up 22% year on year). The company continues to expand its use of renewable energy toward achieving carbon neutrality by 2050.