The Yomiuri Shimbun reported that the Vietnamese government will ensure a stable supply of rare earth minerals to Japan, which is needed for manufacturing high tech products.
As per report, the trading companies Toyota Tsusho Corporation and Sojitz Corporation, and a Vietnamese government run resource development company will launch a JV to start developing a major earth mineral site in Viet Nam in the next fiscal year. More than 90% of these rare minerals are imported from China. Japan hopes that obtaining Viet Nam's cooperation will secure a more stable supply.
The JV will begin commercial mining operations as early as 2011, supplying about 5,000 tonnes of the minerals, or about a quarter of Japan's annual consumption, for about 20 years. Toyota Tsusho and Sojitz plan to acquire 49% of the deposit rights, but an economy, trade and industry ministry official said that "The majority of the unearthed minerals are highly likely to be exported to Japan."
Rare earth minerals, such as the elements lanthanum, cerium and neodymium, are indispensable in the manufacture of permanent magnets for products such as hybrid vehicle motors and computer hard disks. Demand for the minerals is expected to continue growing.
The Japanese government plans to support the resources development project by having Japan Oil, Gas and Metal National Corporation conduct geological surveys of the planned area and have official development assistance used to build roads and bridges. Obtaining the rights for rare earth mineral deposits in Viet Nam is a big step forward in securing a stable supply of the minerals to Japan, which relies entirely on foreign imports of the materials.
In 2008, Vietnam government drew up a framework to support efforts by domestic companies to secure supplies of natural resources to the country. However, even if all of Viet Nam's rare earth mineral production was imported, it would only cover about a quarter of Japan's annual consumption. Further efforts to diversify mineral supplies are needed.
(Sourced from www.yomiuri.co.jp/dy)
