Through mine development that takes the environment and society into consideration,
the DOWA Group stably provides non-ferrous metal resources, including zinc, to support a prosperous society.
To realize a prosperous society through the supply of metals
By stably supplying metals, we believe that the DOWA Group can contribute to the realization of a prosperous society through products and services that use metals.
The strength of our smelting department is in its "smelting and recycling complex" structure through Akita Zinc Co., Ltd., Kosaka Smelting & Refining Co., Ltd. and an alliance with Nippon PGM Co., Ltd. that recovers platinum group metals from automobile waste catalyst.
Through the coordination of intermediate interactions at multiple smelting sites, and by utilizing the unique technology at each site, we are able to efficiently recover about 20 kinds of elements that cannot be recovered independently.
Metals are indispensable for manufacturing products in Japan such as automobiles and electronic products, but now there are few metal mines in operation in the country, and many products depend on imports.
In order to ensure the quality and quantity of metallic materials required by society, we are smelting from two raw materials - the mineral concentrate produced from mines, and recyclable raw materials.
Recycling is indispensable for the sustainable use of metals that are exhaustible resources.
On the other hand, the usage period for metal products is long and they cannot be recovered immediately.
Also, as there is no social system to stably collect a large quantity of recyclable raw materials with uniform quality, recycling alone cannot cover the world's growing demand.The DOWA Group collects recyclable raw materials both in Japan and overseas, and is actively working on mine development overseas.
To secure long-term stability for metallic raw material
Mine development takes a long time from discovery of the deposit until the actual production. Normally, surveying the reserves takes more than 10 years, and two to three years are needed until the construction of the necessary equipment to dig the ore and produce the metallic raw materials.
In addition to requiring a large amount of development expenses during this period, there is also the risk that the external environment, such as metal prices and foreign exchange rates, will change significantly
In order to alleviate such risks as much as possible, we conduct preliminary ore processing tests on projects where initial exploration has been completed. We proceed with the project only after our smelting complex has confirmed whether the quality of the mineral concentrate to be produced in future is appropriate raw material.
Criteria for project selection
- Development of multiple mines to secure long-term stability
- Select countries or regions with low political and economic risks
- Raw materials suitable for the mine, smelting and recycling complex
- An internal rate of return (IRR) that meets our company’s standard
Topic
Los Gatos Project
Zinc is used in a wide range of applications, such as anti-corrosive metal plating for automobiles, household appliances and building materials, and corrosion-resistant parts for ships and bridges.
Against the background of global expansion for metal demand that accompanies economic development, our company is working on mine development in order to secure a long-term stable supply of zinc, which is a resource that is essential to living.
DOWA Metals & Mining Co., Ltd., in cooperation with Sunshine Silver Mining & Refining Corp. (SSMRC) of the U.S., is proceeding with a project to mine silver, zinc and lead at the Los Gatos Mine in Mexico.
Mouth of the Los Gatos Mine
Outline of the project
The Los Gatos Project is a mine scheduled to start operation in July 2019.
In 2020, we will move to full-scale operation and will be able to produce zinc raw material throughout the year.
Our company’s interest is 30%, but we have the right to purchase all of the zinc raw material. About 50,000 tons of zinc raw material (around 57% zinc, 500 g/t silver) is expected to be supplied every year for 12 years.
As a result, together with the interest that we hold in the Tizapa Zinc Mine, also in Mexico, the 20% ratio for our own mining (which is the ratio of raw materials procured from mines that we have invested in) is expected to almost double. This will contribute greatly to the stable supply of zinc raw material.
Furthermore, since the zinc raw material of Los Gatos contains silver at a high level, it will be possible to recover by utilizing the technology we gained through our smelting and recycling complex.
| Mine Location |
State of Chihuahua in Mexico |
| Production Method |
Pit mining |
| Capital Structure |
DOWA 30%, SSMRC 70% |
| Minable Reserves |
9.8 million tons
Silver content 247g/ton
Zinc content 4.8%,
lead content 2.3% |
| Mineral Concentrate Production Volume |
Zinc concentrate about 50,000 tons / year
Lead concentrate about 30,000 tons / year |
| Operating Period |
About 12 years from July 2019 |
Sustainable mine development in harmony with the region
Because mines can have a major impact on the natural environment, such as ecosystems and water, and the community, it is the duty of the business operator to conduct development that considers the environment and local community.
Upon the implementation of this project, after surveying the environmental and social impact that accompanies the overall development activities, we obtained approval for development activities by submitting to government agencies a "prevention report" that formulates an operation management and implementation plan to avoid or reduce the impact.
In addition, we regularly conduct various monitoring surveys related to the environment, such as plants, animals, water and the atmosphere, and are making efforts to preserve the environment.
Not only the natural environment, but with regards to laborers working at the mine, we implement safety education and training according to the work environment, and we confirm that consideration is being given to working conditions based on international standards (IFC performance standards, etc.)
Sustainable management that is rooted in the community is essential for mines that have a long-term connection with the community.
Full-scale operation of the Los Gatos Mine will happen in the future, but at the Tizapa Mine, which has been in operation since 1994, we are continuing our efforts to contribute to the local community, with environmental conservation activities such as tree planting, and the establishment of things like hospitals and gyms.
VOICE
Together with completing a feasibility study in January 2017, the Los Gatos Project submitted to the relevant government agencies a “prevention report” based on various environmental and social impact studies.
In October of the same year, we got the approval for mine development, and started construction work.
Including contractors, up to 1,000 laborers are working at each construction site, and safety education and training are being carried out to protect the safety and health of the workers.
In addition we continue to work to gain the cooperation and understanding of the community about the mine operation through exchange activities at nearby villages.
DOWA METALS & MINING CO., LTD.
Resource and raw material director Hideo Kudo
