JX Advanced Metals is reportedly set to reduce its copper production by several tens of thousands of tonnes in fiscal year 2025 from previous projections, according to a Reuters report, citing a top company official.

One of Japan's leading copper smelters, JX Advanced Metals, with an annual production capacity of 450,000 tonnes (t), had previously indicated the possibility of production cuts. The company's fiscal year concludes in March 2026.

Japanese copper smelters, including JX Advanced Metals, are struggling with reduced treatment and refining charges (TC/RCs) and shrinking margins, a result of limited concentrate supply and increased smelting capacity in China.

Some Chinese smelters have also reportedly agreed to process copper for Chilean miner Antofagasta without fees.

JX Advanced Metals president Yoichi Hayashi was quoted by the news agency as saying: “In the short term, we plan to slash annual electrolytic copper output by several tens of thousands of tonnes from our earlier estimate as we can't purchase concentrates under current conditions.”

Looking ahead, JX Advanced Metals aims to reduce its smelting capacity to mitigate risks associated with concentrate procurement and smelting, although Hayashi did not specify the extent of the reduction.

Approximately half of JX's refined copper is exported, predominantly to China, where demand may decline as new domestic smelters begin operations. Mitsubishi Materials, another industry player, is considering similar reductions.

Despite these cutbacks, Hayashi emphasised the importance of smelting for recovering rare metals such as tantalum, which are vital for semiconductor materials – a key area of growth for the company.

“We are reviewing the optimal scale from various perspectives, including the use of recycling materials," Hayashi stated.

Negotiations between Japanese smelters and global miners ended without a TC/RC agreement, prompting companies to forgo contracted term supplies, according to industry sources.

However, Hayashi mentioned that some miners are open to negotiating different terms with Japanese companies compared to the Chinese benchmark deals, which could support the world's fourth-largest smelting sector.

JX Advanced Metals is also shifting its focus from mining and smelting to semiconductor materials.

In June, the company announced its intention to acquire a stake in the Copi mineral sands project in Australia, led by RZ Resources, to secure rare metals for chip materials.

“We are actively seeking new projects," Hayashi added, noting that future investments would be smaller than its previous Chilean copper mine venture, which led to significant impairment losses.

Since debuting on the stock exchange in March, JX Advanced Metals has focused on refining its decision-making processes and improving communications with investors.

The company has updated its annual profit projections upward, with Hayashi optimistic about achieving the financial goals set for 2027, which include an operating profit margin ranging from 12% to 17%.

JX has also set a long-term objective to significantly increase its operating profit to $1.7bn (Y251.9bn) by 2040.