May 28, 2026JX Advanced Metals CorporationMitsubishi Materials CorporationMitsui Kinzoku Company, LimitedMarubeni Corporation
JX Advanced Metals Corporation (President: Yoichi Hayashi, hereinafter, “JX”), Mitsui Kinzoku Company, Limited (President: Shoji Ikenobu, hereinafter, “Mitsui Kinzoku”), Marubeni Corporation (President: Masayuki Omoto, hereinafter, “Marubeni”) and Mitsubishi Materials Corporation (Executive Officer and President: Tetsuya Tanaka, hereinafter, “MMC”; collectively, the “Companies”) hereby announce that, as of May 28, 2026, the Companies have entered into a definitive agreement (hereinafter, “Final Agreement”) regarding the integrating of MMC’s businesses (the purchase of copper concentrates and the sales of related products including copper cathodes, sulfuric acid, and other by-products derived from copper concentrates; hereinafter, the “Target Business”) into Pan Pacific Copper Co., Ltd. (hereinafter, “PPC”), which is a joint venture among JX, Mitsui Kinzoku, and Marubeni. This transaction is hereinafter referred to as the “Transaction.”
As competition with overseas smelters increases, the conditions for purchasing copper concentrates from mining companies (TC/RC*)have significantly deteriorated, and the outlook for the external environment surrounding the copper smelting business remains uncertain. Domestic copper smelters play a vital role not only in producing copper cathodes, but also in recovering rare metals and precious metals. These metal resources are indispensable for advanced technologies and products, especially for developing AI data centers, and the sustained operation of copper smelters is extremely important from the perspective of economic security.
Under these circumstances, as announced in November 2025**, the Companies have been specifically discussing and considering this integration with the aim of establishing a new framework to strengthen international competitiveness and maintain and improve profitability. The Companies have decided to execute the Transaction such that PPC will take over the Target Business by means of a company split and transfer the Target Business from PPC to a newly established subsidiary of PPC (hereinafter, the “New Company”)***. Following the transaction, the ownership stakes in PPC will be as follows: JX 32.50%, MMC 32.00%, Mitsui Kinzoku 21.90%, and Marubeni 13.60%****. PPC will thereby become an equity-method affiliate of each of the Companies, and the New Company will become a wholly owned subsidiary of PPC (hereinafter, PPC and the New Company will be collectively referred to as the “PPC Group”). Currently, PPC subcontracts its smelting and refining business to JX Metal Smelting Co., Ltd., and Hibi Smelting Co., Ltd, and after the Transaction, MMC will also become a subcontractor for the PPC Group.
Through the Transaction, the PPC Group will be able to increase its procurement volume of copper concentrate, thereby enhancing its purchasing power by leveraging economies of scale. In addition, by consolidating common functions and building an optimal supply structure, the PPC Group will promote greater efficiency in its production and sales operations, leading to cost reductions and further improvements in profitability. Furthermore, by combining the strengths and expertise of each company, the PPC Group will pursue synergies such as the optimization of its sales portfolio and further strengthen the competitiveness of its copper smelting business. The Transaction is intended to strengthen the PPC Group’s competitiveness and implement a fundamental restructuring to ensure sustainable business operations, given the challenging environment currently facing the copper smelting industry.
The execution of the Transaction is planned for October 1, 2026, subject to the completion of necessary filings with and the receipt of approvals from relevant domestic and foreign authorities, such as the Japan Fair Trade Commission.
* TC/RC: “Treatment Charge” and “Refining Charge” used in copper concentrate transactions.** Execution of a Memorandum of Understanding Concerning the Integration of Businesses for the Purchase of Copper Concentrates and the Sales of Related Products *** The Transaction will be executed as follows: (i) PPC will establish a new company, and then (ii) an absorption-type split of the Target Business to PPC (hereinafter, the “First Absorption-Type Split”) will be carried out, with MMC as the transferring company and PPC as the transferee company, (iii) on the same date as the First Absorption-Type Split, subject to the condition subsequent that the First Absorption-Type Split takes effect, an absorption-type split of the Target Business will be carried out, with PPC as the transferring company and the New Company as the transferee company.**** Figures are rounded to the second decimal place.
