Nippon Mining & Metals Focuses on Integration

Nippon Mining & Metals has spent about 5 months after metal related 3 companies under Nippon Mining Holdings were integrated in April 2006, which were Nikko Materials, Nikko Metal Manufacturing and previous Nippon Mining & Metals. Masanori Okada, president of present Nippon Mining & Metals, explained the current business conditions and the management strategies with synergism by the integration.Mr. Okada said the firm would not accept BHP Billiton’s contention to abolish price participation system, though BHP Billiton and Japanese nonferrous metal smelters are facing serious conflict in the copper ore price negotiation. He said the firm had a choice to seek the court ruling as the firm did in the previous price negotiation at the end of 2005.Mr. Okada indicated BHP Billiton and Japanese smelters could enter the next negotiation at the end of 2006 without the agreement in this mid-year negotiation. He said there is little impact on the copper ingot production in the short term due to existing 2 years purchase agreement even if Nippon Mining & Metals cannot reach the price agreement with BHP Billiton at the year-end negotiation.Mr. Okada said the copper smelting business focuses on efficient production through Pan Pacific Copper. He said the recycling of precious metals is profit center for the recycling business. He said the firm considers collecting recycling materials from offshore sources while the firm expands asbestos melting business at Hitachi plant. Mr. Okada said the electronic materials unit tries to expand output capacity for growing items including semiconductor, liquid crystal and magnetic material target while the unit expands new core items including metallized two layer polyimide film or MAQINAS. He said the metal fabrication unit develops continuous gold plating technology through the subsidiary, Fuji Electronics. He said the rolled copper foil business is the model for company wide cooperation when the electronic materials unit and metal fabrication unit develop new products for the users.