September 9, 2022
DOWA HOLDINGS CO., LTD.
DOWA HOLDINGS CO., LTD. (14-1, Sotokanda 4-chome, Chiyoda-ku, Tokyo; 36.4 billion yen; President: SEKIGUCHI Akira; “the Company”) hereby announces that a meeting of the Board of Directors held today has resolved to terminate the tolling contract for smelting copper concentrates between our subsidiary, DOWA METALS & MINING CO., LTD. (14-1, Sotokanda 4-chome, Chiyoda-ku, Tokyo; 1 billion yen; President: SUYAMA Toshiaki; ”DMM”), and the tolling contractor, Onahama Smelting and Refining Co., Ltd., at the end of March 2023. The details are as follows.
With the termination of this tolling contract, the Company has decided to transfer all of the shares of Onahama Smelting and Refining Co., Ltd. owned by DMM to Mitsubishi Materials Corporation.
1. Background and purpose of termination of the contract
DMM produces and sells copper cathodes mainly from recycling materials at its wholly owned subsidiary, KOSAKA SMELTING & REFINING CO., LTD., and by the tolling of copper concentrates to Onahama Smelting and Refining Co., Ltd.
The DOWA Group has established the evolution of recycling-oriented business model as a basic strategy and decided to promote enhancing metal recycling as one of the priority initiatives in its medium-term management plan, Midterm Plan 2024. Based on this plan and to concentrate its management resources in the metal recycling business, the Company has decided to terminate the tolling contract between DMM and Onahama Smelting and Refining Co., Ltd.
2. Overview of Onahama Smelting and Refining Co., Ltd.
| (1) Corporate name | Onahama Smelting and Refining Co., Ltd. |
| (2) Head office | 2-2, Kandatsukasa-machi 2-chome, Chiyoda-ku, Tokyo |
| (3) Representative | YAMADA Takahiro, President |
| (4) Capital | 6,999 million Japanese yen |
| (5) Founded | 1963 |
| (6) Shareholder composition |
Mitsubishi Materials Corporation 55.714% DOWA METALS & MINING CO., LTD. 31.621% Furukawa Metals & Resources Co., Ltd. 12.665% |
3. Date of termination of the tolling contract
March 31, 2023
4. Future outlook
The impact of this matter was not included in the consolidated financial forecasts for the fiscal year ending March 2023 that were released on August 10, 2022. However, the impact would be expected to be small. If we determine that it is necessary to revise the forecasts in the future, we will swiftly announce the revision.
Contact for inquiries
DOWA HOLDINGS CO., LTD.
https://ir.dowa.co.jp/en/ir/contact1.html
