TOKYO, Feb 23 (News On Japan) –
Gold costs proceed to surge, whereas China’s restrictions on uncommon earths and different developments are drawing renewed consideration to mineral assets, prompting a more in-depth take a look at useful resource methods in an more and more geopolitical period by means of an interview with Sumitomo Metal Mining President Shinsuke Matsumoto.
At a gold-themed occasion held final month at a division retailer in Tokyo, a gold sculpture of Shohei Ohtani drew crowds of onlookers, with the pair of gold statues priced at 55 million yen and made utilizing roughly 3,000 gold cash. Interest in gold has intensified alongside rising costs and Ohtani’s international fame. Often known as a “safe-haven asset,” gold has surged to roughly 4 instances its stage earlier than Russia’s invasion of Ukraine 4 years in the past.
Amid this backdrop, Japan’s solely working gold mine—Sumitomo Metal Mining’s Hishikari mine in Kagoshima Prefecture—has gained prominence. Development started within the early Nineteen Eighties, with the primary ore vein found at a depth of 100 meters in 1985, marking roughly 40 years since manufacturing began. From the mine entrance, staff descend to a depth of 345 meters, akin to the peak of Tokyo Tower.
At the positioning, geothermal scorching spring water performs a vital function in gold formation. Gold contained in magma throughout volcanic exercise about a million years in the past was carried close to the floor by scorching water, forming one of many world’s highest-grade gold veins. The mine’s whole tunnel size extends about 170 kilometers, and superior equipment is used to exactly find slim veins embedded in laborious rock. Automated gear assists with drilling and explosive placement, whereas staff monitor refined modifications in vein course and rock hardness.
Ore extracted right here averages about 20 grams of gold per ton—greater than ten instances the grade of main international mines. Quartz containing gold is sorted and transported to a refinery in Ehime Prefecture to be processed into gold merchandise. Sumitomo Metal Mining produces roughly 3.5 tons of gold yearly from the mine.
Matsumoto stated the Hishikari mine stays a invaluable asset for the corporate, which has extracted about 270 tons of gold there over the previous 4 many years. An estimated 154 tons should still stay, and ongoing exploration is underneath means across the web site. While gold costs are at the moment elevated, Matsumoto famous that monetary market dynamics typically drive demand, with about 30% of the roughly 5,000 tons of gold produced globally annually used for funding functions. Ongoing geopolitical uncertainty has pushed funds into gold as a steady asset.
The firm’s efficiency has been robust, with web revenue for the fiscal 12 months ending March 2026 anticipated to be about 8.5 instances increased than the earlier 12 months, whereas its share value has greater than doubled over the previous 12 months. Still, Matsumoto harassed that as a manufacturing-oriented firm, Sumitomo Metal Mining goals to deal with producing supplies somewhat than relying solely on value fluctuations.
Beyond gold, the corporate mines copper, nickel and different assets abroad, primarily in South America, North America and Australia, typically in partnership with main international mining corporations. It operates eight abroad mines and can be increasing its supplies enterprise. One instance is a useful materials referred to as Solament, which absorbs infrared radiation whereas permitting mild to go by means of and has been included into merchandise similar to umbrellas that had been offered on the Osaka-Kansai Expo.
Matsumoto stated the worldwide surroundings has shifted from an period of free-flowing globalization to 1 marked by geopolitical competitors, making useful resource acquisition abroad harder and expensive. For Japan, which lacks home assets, constructing partnerships by providing superior refining and manufacturing applied sciences will likely be key to securing entry. Improving productiveness and decreasing prices at refining amenities are additionally important to sustaining competitiveness.
Looking forward, Matsumoto emphasised the significance of growing human assets to make sure the corporate’s continued progress over the following 400 years, noting that at the same time as AI advances, human judgment stays vital in course of growth and new product creation.
Japan’s solely energetic gold mine has produced about 270 tons of gold to this point and nonetheless holds important potential, with exceptionally excessive ore grades by international requirements. As gold costs soar and geopolitical tensions reshape provide chains, the mine’s function in preserving mining expertise and supporting Japan’s useful resource safety has taken on renewed significance.
Source: TBS