TOKYO - Gold prices continue to surge, while China’s restrictions on rare earths and other developments are drawing renewed attention to mineral resources, prompting a closer look at resource strategies in an increasingly geopolitical era through an interview with Sumitomo Metal Mining President Shinsuke Matsumoto.
At a gold-themed event held last month at a department store in Tokyo, a gold sculpture of Shohei Ohtani drew crowds of onlookers, with the pair of gold statues priced at 55 million yen and made using roughly 3,000 gold coins. Interest in gold has intensified alongside rising prices and Ohtani’s global fame. Often referred to as a “safe-haven asset,” gold has surged to roughly four times its level before Russia’s invasion of Ukraine four years ago.
Amid this backdrop, Japan’s only operating gold mine—Sumitomo Metal Mining’s Hishikari mine in Kagoshima Prefecture—has gained prominence. Development began in the early 1980s, with the first ore vein discovered at a depth of 100 meters in 1985, marking roughly 40 years since production started. From the mine entrance, workers descend to a depth of 345 meters, comparable to the height of Tokyo Tower.
At the site, geothermal hot spring water plays a crucial role in gold formation. Gold contained in magma during volcanic activity about one million years ago was carried near the surface by hot water, forming one of the world’s highest-grade gold veins. The mine’s total tunnel length extends about 170 kilometers, and advanced machinery is used to precisely locate narrow veins embedded in hard rock. Automated equipment assists with drilling and explosive placement, while workers monitor subtle changes in vein direction and rock hardness.
Ore extracted here averages about 20 grams of gold per ton—more than ten times the grade of major global mines. Quartz containing gold is sorted and transported to a refinery in Ehime Prefecture to be processed into gold products. Sumitomo Metal Mining produces roughly 3.5 tons of gold annually from the mine.
Matsumoto said the Hishikari mine remains a valuable asset for the company, which has extracted about 270 tons of gold there over the past four decades. An estimated 154 tons may still remain, and ongoing exploration is under way around the site. While gold prices are currently elevated, Matsumoto noted that financial market dynamics often drive demand, with about 30% of the roughly 5,000 tons of gold produced globally each year used for investment purposes. Ongoing geopolitical uncertainty has pushed funds into gold as a stable asset.
The company’s performance has been strong, with net profit for the fiscal year ending March 2026 expected to be about 8.5 times higher than the previous year, while its share price has more than doubled over the past year. Still, Matsumoto stressed that as a manufacturing-oriented company, Sumitomo Metal Mining aims to focus on producing materials rather than relying solely on price fluctuations.
Beyond gold, the company mines copper, nickel and other resources overseas, mainly in South America, North America and Australia, often in partnership with major global mining firms. It operates eight overseas mines and is also expanding its materials business. One example is a functional material called Solament, which absorbs infrared radiation while allowing light to pass through and has been incorporated into products such as umbrellas that were sold at the Osaka-Kansai Expo.
Matsumoto said the global environment has shifted from an era of free-flowing globalization to one marked by geopolitical competition, making resource acquisition overseas more difficult and costly. For Japan, which lacks domestic resources, building partnerships by offering advanced refining and production technologies will be key to securing access. Improving productivity and reducing costs at refining facilities are also essential to maintaining competitiveness.
Looking ahead, Matsumoto emphasized the importance of developing human resources to ensure the company’s continued growth over the next 400 years, noting that even as AI advances, human judgment remains critical in process development and new product creation.
Japan’s only active gold mine has produced about 270 tons of gold so far and still holds significant potential, with exceptionally high ore grades by global standards. As gold prices soar and geopolitical tensions reshape supply chains, the mine’s role in preserving mining technology and supporting Japan’s resource security has taken on renewed significance.
Source: TBS
