Sojitz, JOGMEC deal secure supply Rare Earths Japan

Sojitz, JOGMEC deal to secure supply of Rare Earths for Japan

4:47 PM, 31st March 2011
Sojitz, JOGMEC deal to secure supply of Rare Earths for Japan
Mount Weld Rare Earths Concentration Plant.

 

TOKYO, JAPAN: Sojitz Corporation and Japan Oil, Gas and Metals National Corporation (JOGMEC) announced that they have entered into definitive agreements with Lynas Corporation Ltd (Lynas), an Australian Rare Earths Company, to provide a total of $ 250 million through loan and equity and to receive the allocation of a minimum of 8,500 tonnes (±500 tonnes) per annum of Rare Earths products for Japan, which currently represents 30 per cent of the Japanese market, over a period of ten years.

 

In addition, Sojitz signed a distribution & agency agreement with Lynas that Sojitz will be appointed as a sole distributor and sole agent of Lynas in Japan. This agreement will enable Sojitz to achieve stable supply of various types of high quality Rare Earth products to Japanese customers.

 

In an attempt to meet the increased Rare Earths demand around the world, Lynas currently develops its mine and concentration plant at Mount Weld in Western Australia and its advanced materials Plant for separation and refining in Malaysia in two stages, phase 1 and phase 2. The phase 1 project (total investment of AUD 540 million) is scheduled to begin production in 3Q 2011 (11,000 tonnes per annum). Phase 2 project (total investment of USD 250 million) will expand production capacities of Malaysian Plant (addition of 11,000 tonnes per annum).

 

Rare Earths products, known as “The Vitamins of Modern Industry,” are used in many new fields. Sojitz and JOGMEC believe that it is essential to secure a stable source of supply of Rare Earths products as it will greatly contribute to the long-term growth of the manufacturing industry in Japan.

(C) WOC News

 

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