Toshiba targets rare metals deal in Kazakhstan

By Robin Harding in Tokyo
Published: October 26 2009 02:00 | Last updated: October 26 2009 02:00

Japanese companies, urged on by their government, are racing to secure supplies of rare metals and rare earth elements that are vital to many technology products.

By the end of the year Toshiba aims to agree a deal with Kazatomprom, the national uranium company of Kazakhstan, to extract rare metals such as beryllium and tantalum, and rare earth elements such as dysprosium and neodymium alongside uranium mining.

Global concern about the supply of such materials increased last month after reports that China - the dominant producer of rare earths - might ban the export of some elements.

A Japanese government official said on Friday that it was "extremely important" to secure supplies.

The magnetic properties of the rare earths neodymium and dysprosium mean they are used in powerful but lightweight motors, which are essential to the success of electric vehicles.

Toshiba said: "Demand for rare metals is increasing, as they are used in diverse energy-saving, environmentally friendly products . . . [and] assuring stable supply has become more important than ever."

Many rare metals - such as tantalum, which is vital to the electronics industry - are in limited supply . Toshiba wants to secure raw materials for semiconductors.

Toshiba, which is one of the world's leading builders of nuclear reactors, has a close relationship with Kazatomprom, which is an investor in one of its uranium projects.

Kazatomprom owns a minority stake in Toshiba's Westinghouse nuclear division.

Japan's government is so concerned about potential shortages that the Democratic party made "acquiring secure supplies of rare metals" through recycling and "diplomatic approaches with exporting countries" one of its election manifesto pledges this year.

Kazakhstan is one of Japan's principal diplomatic targets. In August, Sumitomo Corp, the trading house, agreed a separate deal with Kazatomprom to extract rare earth elements from leftovers at abandoned uranium mines.

Toyota Tsusho, a trading company affiliated to Toyota, is developing rare earth supplies in India and Vietnam and Japan's government has signed a deal to explore for rare metals in southern African countries.

At home, Japan's government is trying to increase the proportion of rare metals recycled from used mobile phones and other consumer electronics.