Identifier
Created
Classification
Origin
09TOKYO271
2009-02-04 22:46:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Tokyo
Cable title:
JAPAN TO EXPAND EFFORTS TO ACQUIRE RARE METALS
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UNCLAS SECTION 01 OF 02 TOKYO 000271
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EMIN ENRG PREL SENV JA XA
SUBJECT: JAPAN TO EXPAND EFFORTS TO ACQUIRE RARE METALS
SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE APPROPRIATELY.
UNCLAS SECTION 01 OF 02 TOKYO 000271
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EMIN ENRG PREL SENV JA XA
SUBJECT: JAPAN TO EXPAND EFFORTS TO ACQUIRE RARE METALS
SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE APPROPRIATELY.
1. (SBU) SUMMARY: The GOJ is more than doubling its budget for rare
metals exploration and acquisition in FY2009. Priorities include
remote sensing activities in southern Africa, projects to stockpile
and recycle rare metals from used equipment, and research to
leverage advances in technology to extract rare metal deposits from
abandoned mines, according to a senor official from the Japan Oil,
Gas and Metals Exploration Corporation (JOGMEC). These activities
are at the core of the GOJ's intensifying strategy to secure Japan's
3.3 trillion yen demand for rare metals used to manufacture personal
computers, cell phones, audio devices, navigation systems, aircraft,
and autos. END SUMMARY.
2. (SBU) The JOGMEC Director General for Metals Finance Tsuguyo
Takahashi told emboffs the JOGMEC is pleased with the proposed
FY2009 budget for metals exploration activities and is eager to
expand several projects as soon as the budget passes the Diet. The
JOGMEC's funding for rare metals exploration and acquisition in
FY2009 will more than double to 31.1 billion yen ($346 million).
3. (SBU) Although international demand for rare metals is currently
down due to global economic conditions, the JOGMEC expects supplies
will tighten in the near future as demand for new energy
technologies such as solar panels and fuel cells, as well as liquid
crystal displays and other devices that rely on these commodities
increases.
Takahashi added the yen's appreciation has been a boon to the
JOGMEC's projects overseas.
NEW REMOTE SENSING COOPERATION
--------------
4. (SBU) Takahashi identified remote sensing for deposits of rare
metals in Africa as a key focus of the JOGMEC's rare metals
procurement strategy. Under an agreement concluded at the spring
2008 TICAD IV conference in Tokyo, the GOJ established a geologic
remote sensing center in Botswana. (Note: According to GOJ Africa
funding strategy documents, the center's total budget for the next
five years amounts to five hundred million yen. End Note.) The
JOGMEC began training Botswana Geological Survey project staff to
manage the facility in August 2008 and encouraged Mozambique,
Madagascar and South Africa to participate in the project during a
mission to Southern Africa in September 2008
5. (SBU) Takahashi said the JOGMEC has been running several
exploration projects from the Botswana center with state-run mining
companies from neighboring countries as well as with major
multinational natural resource companies. The JOGMEC intends to
ramp up these projects once the FY2009 budget is passed. The JOGMEC
is expanding its activities elsewhere as well, e.g., through a joint
exploration agreement with the Brazilian metals and mining company
Vale signed in May 2008.
INCREASING DEMAND RESULTING IN RECYCLING
--------------
6. (SBU) The JOGMEC is financing programs to recycle used rare
metals from disposed computers, cell phones, and other devices.
Takahashi said the JOGMEC is collaborating with Dowa Kogyo, a major
recycling company, to research jointly environmentally friendly
recycling operations. (Note: the FY2009 budget proposal for rare
metals recycling more than doubles the FY2008 amount from 1.2
billion yen to 2.9 billion yen. End Note.) This research project
also includes a GOJ-funded study on the health hazards of working
with metals recycling run by the Akita prefecture Kosaka Institute.
7. (SBU) The third priority for the JOGMEC is to fund research
projects to extract rare metal deposits remaining in abandoned
mines. Takahashi explained technological advances have made it
feasible to extract rare metals from Japanese deposits where the
yields were previously too small or activities too costly to justify
extraction. The JOGMEC is financing a joint project with Sumitomo
Metal & Mining that deploys these new technologies to re-open the
Hishikari Mine in Kagoshima-prefecture. Officials at the JOGMEC
believe these mine re-openings can be an important domestic source
of rare minerals.
TOKYO 00000271 002 OF 002
ZUMWALT
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EMIN ENRG PREL SENV JA XA
SUBJECT: JAPAN TO EXPAND EFFORTS TO ACQUIRE RARE METALS
SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE APPROPRIATELY.
1. (SBU) SUMMARY: The GOJ is more than doubling its budget for rare
metals exploration and acquisition in FY2009. Priorities include
remote sensing activities in southern Africa, projects to stockpile
and recycle rare metals from used equipment, and research to
leverage advances in technology to extract rare metal deposits from
abandoned mines, according to a senor official from the Japan Oil,
Gas and Metals Exploration Corporation (JOGMEC). These activities
are at the core of the GOJ's intensifying strategy to secure Japan's
3.3 trillion yen demand for rare metals used to manufacture personal
computers, cell phones, audio devices, navigation systems, aircraft,
and autos. END SUMMARY.
2. (SBU) The JOGMEC Director General for Metals Finance Tsuguyo
Takahashi told emboffs the JOGMEC is pleased with the proposed
FY2009 budget for metals exploration activities and is eager to
expand several projects as soon as the budget passes the Diet. The
JOGMEC's funding for rare metals exploration and acquisition in
FY2009 will more than double to 31.1 billion yen ($346 million).
3. (SBU) Although international demand for rare metals is currently
down due to global economic conditions, the JOGMEC expects supplies
will tighten in the near future as demand for new energy
technologies such as solar panels and fuel cells, as well as liquid
crystal displays and other devices that rely on these commodities
increases.
Takahashi added the yen's appreciation has been a boon to the
JOGMEC's projects overseas.
NEW REMOTE SENSING COOPERATION
--------------
4. (SBU) Takahashi identified remote sensing for deposits of rare
metals in Africa as a key focus of the JOGMEC's rare metals
procurement strategy. Under an agreement concluded at the spring
2008 TICAD IV conference in Tokyo, the GOJ established a geologic
remote sensing center in Botswana. (Note: According to GOJ Africa
funding strategy documents, the center's total budget for the next
five years amounts to five hundred million yen. End Note.) The
JOGMEC began training Botswana Geological Survey project staff to
manage the facility in August 2008 and encouraged Mozambique,
Madagascar and South Africa to participate in the project during a
mission to Southern Africa in September 2008
5. (SBU) Takahashi said the JOGMEC has been running several
exploration projects from the Botswana center with state-run mining
companies from neighboring countries as well as with major
multinational natural resource companies. The JOGMEC intends to
ramp up these projects once the FY2009 budget is passed. The JOGMEC
is expanding its activities elsewhere as well, e.g., through a joint
exploration agreement with the Brazilian metals and mining company
Vale signed in May 2008.
INCREASING DEMAND RESULTING IN RECYCLING
--------------
6. (SBU) The JOGMEC is financing programs to recycle used rare
metals from disposed computers, cell phones, and other devices.
Takahashi said the JOGMEC is collaborating with Dowa Kogyo, a major
recycling company, to research jointly environmentally friendly
recycling operations. (Note: the FY2009 budget proposal for rare
metals recycling more than doubles the FY2008 amount from 1.2
billion yen to 2.9 billion yen. End Note.) This research project
also includes a GOJ-funded study on the health hazards of working
with metals recycling run by the Akita prefecture Kosaka Institute.
7. (SBU) The third priority for the JOGMEC is to fund research
projects to extract rare metal deposits remaining in abandoned
mines. Takahashi explained technological advances have made it
feasible to extract rare metals from Japanese deposits where the
yields were previously too small or activities too costly to justify
extraction. The JOGMEC is financing a joint project with Sumitomo
Metal & Mining that deploys these new technologies to re-open the
Hishikari Mine in Kagoshima-prefecture. Officials at the JOGMEC
believe these mine re-openings can be an important domestic source
of rare minerals.
TOKYO 00000271 002 OF 002
ZUMWALT