ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter “ITOCHU”) announced today that a memorandum on SDGs collaboration has been signed with the Brazilian CSN Group as a model case for initiatives, along with the implementation of business partnerships with companies in Japan and abroad that possess excellent technologies, with the aim of promoting decarbonization and digital transformation (hereinafter, "DX") in the field of metals and mineral resources. ITOCHU owns Brazilian iron ore mining interests (Casa de Pedra [CdP] Mines) together with the CSN Group and we have agreed on collaborating in decarbonization and DX to increase operational efficiency at the CdP Mines and to contribute to decarbonization at the Mines and CSN steel work. Moreover, ITOCHU also plans to conduct broader collaboration, including current ITOCHU decarbonization initiatives in the field of metals and minerals (*1), as a way to further contribute to decarbonization of CSN Group operations, such as through low-carbon ironmaking technology, hydrogen and ammonia, and CCUS.

To promote digital transformation to improve operational efficiency, cut costs, and increase safety in metal and mineral resources, ITOCHU has entered into business partnerships with companies (solution vendors) in Japan and abroad that possess excellent digital solutions, know-how, and track records with regard to improving all the relevant processes. *2 See annexed table for a list of principal partners
ITOCHU will utilize the networks in the metal and mineral resource industry that it has built through previous interest investment and management as well as trade business to discover DX needs, introduce them to solution vendors, and take a leading role in DX matters, focusing primarily on mines where ITOCHU owns interests. It will also offer packages of multiple solutions to suit the needs of each mining company as well as make recommendations and provide initial support to those companies.
Moreover, its aim is also to provide solutions that support the SDGs, such as decarbonization of operations through DX-mediated emissions control and increased safety through more sophisticated monitoring.

As a model case of these initiatives, ITOCHU together with GE Digital started a DX project for operations at a CdP Mine in April 2021. In the first stage of this project, the plan is to implement solutions to visualize operational data and administrative and financial data for managers as well as to conduct preventive maintenance at plants and relevant equipment and to analyze and improve the efficiency of operations. It is expected to contribute to improving business profitability mainly through cost reductions and improvement in metal recovery rate. In the second stage and beyond, the aim is for further efficiency improvement by linking data from mines to ports as well as more advanced data linking of ITOCHU functions and market information.
In addition to its collaboration for operational DX, in line with the growing global interest in decarbonization, ITOCHU aspires to contribute to cutting CO₂ emissions at CdP Mines and other CSN businesses such as ironworks. As such, it has signed a memorandum with CSN, CSN Mineracao, and CSN Inova (the CSN Group) to work together for the SDGs and jointly investigate and potentially invest in new technologies. We agreed to implement initiatives for operational DX and decarbonization in the CdP Mine model case. In the future, it plans to jointly expand to third-party mines and businesses on the basis of the model case.

ITOCHU positions "Strengthening Contributions to and Initiatives for the SDGs" as one of its basic policies in the medium-term management plan Brand New Deal 2023. Centering on mines where it has interests, it will contribute to improving operational efficiency in the metal and mineral resource industry as a whole, increasing safety, and achieving the SDGs.

*2 Annexed table: Principal partners (solution vendors)