Japan still chasing rare earth deposits outside of China.

SECURING new rare earth deposits is a major priority for the Japanese government, according to the exploration director of JOGMEC (Japan Oil, Gas and Metals National Corporation), who told a conference in Perth this morning that diversifying supply of rare earths is an “urgent matter” for the Japanese economy.

JOGMEC Metals Exploration Department director Shuichi Miyatake told Informa’s Rare Earths & Future Metals Forum this morning that Japan was keen to see new rare earth mines open outside China, to reduce its dependence on Chinese suppliers.

China controls around 95% of rare earth oxide production, and talk last year that the economic giant was considering restricting exports sparked concern in other manufacturing economies, as rare earth metals are vital to the production of many high-tech products – including hybrid vehicles, mobile phones, computers, television and even smart missiles.

While that concern has diminished somewhat in recent months, finding non-Chinese sources of rare earths is still a priority for JOGMEC, the Japanese government authority tasked with securing a stable supply of oil and natural gas and nonferrous metal and mineral resources to ensure the Japanese manufacturing sector keeps ticking over.

Miyatake told conference delegates that JOGMEC has four exploration projects currently underway.

In early March, JOGMEC signed an exploration agreement with Canadian mining firm Midland Exploration, agreeing to spend $C2.7 million ($A2.8 million) over three years to earn a 50% interest in a project in the Ytterby region of northern Canada, near the Strange Lake heavy rare earth deposit (owned by Quest Uranium).

In October last year, JOGMEC signed a memorandum of understanding with the Sumitomo Corporation and the Kazakh National Atomic Company (Kazatomprom) to provide technical support for a rare earth recovery project the two companies are considering in Kazakhstan.

The Japanese authority also has also been conducting long-standing exploration activities in South Africa with that country’s Council for Geoscience, and in northern Vietnam, in association with the Vietnamese government.

Similar deals are likely to continue, as Japanese authorities continue to seek security of supply for rare earths – though Miyatake noted that JOGMEC was primarily exploration focused, and would likely hand over projects to commercial partners for further development as they approach the feasibility stage.
 
Nick Evans, Monday, 29 March 2010