Sumitomo Metal Mining (SMM) tries to lower productive cost at Toyo Smelter & Refinery in Ehime Prefecture, Japan by 20% toward fiscal 2012 ending in March 2013 compared with fiscal 2009. Toyo is SMM’s electrolytic copper plant. SMM aims to improve profitability of copper smelting business by cost down and technological innovation when concentrate price stays high and yen exchange rate maintains strong.
SMM plans productive cost down at Toyo by 8% in fiscal 2010 compared with fiscal 2009. The plant reduces operating and maintenance costs as well as lowers depreciation by investment downsizing. The firm eyes 20% cost down during the latest mid-term management plan for fiscal 2010-2012. Toyo also continues 10% production cut to gain maximum profit even at high concentrate price. SMM examines introduction of its unique flash furnace burner, developed in 1980s, at Toyo to improve profitability by technological approach. General burner blows air from upside of the shaft while SMM’s original burner blows air from the shaft’s side nozzles. This method realizes better copper collectivity. Toyo implemented the first test operation of the burner in August 2010 and confirmed the smooth smelting operation at 2,500-3,000 tonnes per day. In mid fiscal 2011, Toyo will reline all bricks inside the flash furnace during 60 days. This is the first total relining since the furnace’s operation start in 1971. SMM expects for operative risk rejection, better productivity and less slag generation.Japan Steel Scrap Composite Prices (Sangyo Press)
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