Mitsubishi Materials Corp. unveiled a new three-year management strategy on Wednesday, abandoning prior financial goals after a collapse in copper processing fees squeezed profits well below expectations.
The Tokyo-based metals producer now forecasts ordinary profit of ¥43 billion ($276 million) for the fiscal year ending March 2026, roughly half the ¥87 billion target set in its 2023 roadmap. Return on equity is expected to reach just 3%, a third of the planned 10%.
The company blamed deteriorating treatment and refining charges (TC/RC) paid by miners, after some Chinese smelters agreed to process copper concentrates for zero fees in mid-year negotiations—far below the 2025 benchmark of $21.25 per ton.
Under the revised plan covering fiscal years 2027-2029, Mitsubishi Materials will reduce copper concentrate processing to 60-70% of current levels while doubling e-scrap recycling capacity by fiscal 2036. The company targets at least 8% ROE and 7% ROIC by fiscal 2029, with ordinary profit exceeding ¥85 billion ($545 million).
The strategy includes integrating copper concentrate purchasing operations with Pan Pacific Copper, Japan’s largest refined copper supplier. Mitsubishi Materials also aims to achieve 100% tungsten recycling by fiscal 2031, up from approximately 70%.
Capital allocation over the three-year period totals roughly ¥500 billion ($3.2 billion), with 70% of growth investment directed toward materials businesses. The company has already executed a voluntary retirement program and is consolidating production facilities.
Whether these targets prove more realistic than the discarded ones remains uncertain.
