Extending Mine Life through Exploration and Deep Development at Existing Mines

「From the perspective of our financial capacity, it is difficult to continue the resources business, and we will exit the business early through measures such as closing or selling our owned mines.」

「The current main medium-grade orebody will be exhausted over the next 3 years, while development of the deep orebody that is to become the next main production area would require substantial investment and increase operating costs. We therefore concluded that continued medium- to long-term operations at the Rasp mine, premised on developing that orebody, would not be sufficiently economically viable, and in November 2023 decided to close the mine in 2024.」

「We concluded that the economics of developing the orebody that was to become the next main production area were poor and that the medium- to long-term business plan for the mine, premised on developing that orebody, was not economically viable. We therefore decided to close the Rasp mine by the end of 2024.」

「We concluded that the economics of developing the orebody that was to become the next main production area were poor and that the medium- to long-term business plan for the mine, premised on developing that orebody, was not economically viable. We therefore decided to close the Rasp mine by the end of 2024.」

「At the Rasp mine, actual mining of the high-grade orebody was postponed until the beginning of fiscal 2024, resulting in lower run-of-mine ore grades and reduced production.」

「At CBH's Rasp mine in Australia, concentrate production declined from the previous fiscal year, mainly due to lower ore grades resulting from reduced mining volumes of high-grade orebodies, compounded by slower operation of the processing plant due to operator shortages during the COVID-19 pandemic.」

「In addition, operating income turned into a loss due to lower production resulting from declining ore grades and the associated deterioration in productivity.」

「Operating profit declined due to lower production resulting from declining ore grades and less favorable ore sales terms.」

「At CBH's Rasp Mine, operations shifted in July 2020 to an optimal production configuration involving an approximately 30% production cut aimed at improving economic performance. As a result, concentrate production declined, and, together with lower metal prices compared with the previous period, comparing January–December, and the suspension of operations at the Endeavour Mine, revenue fell to ¥7,557 million, a decrease of ¥3,888 million, or 34%, from the previous period.」

「Although there were developments such as the suspension of operations at CBH's Endeavor mine,」

「The Resources business also reported lower consolidated revenue year on year, partly because CBH Co.'s Endeavor mine had remained shut since the end of the previous year.」

「Deep exploration aimed at extending the mine life produced insufficient results from an economic evaluation standpoint, and the mine was placed on care and maintenance at the end of 2019.」

「It is necessary to increase recoverable ore reserves through peripheral exploration and deep development at existing mines and thereby extend mine life.」