Sojitz to step up probes for rare metals used in eco-friendly cars

(November 20, 2009)

TOKYO, JAPAN --Sojitz Corporation is taking action to bolster its setup for procurement of rare metals and rare earth metals. It is projecting an increase in demand for the same as materials for eco-friendly car components and already has an in-house ad-hoc team, which it established in the spring of this year. The company plans to bolster its probes for lithium, which is used in vehicle-mounted secondary cells, in China's Qinghai Province and Tibet Autonomous Region. For rare earth metals, which are used for permanent magnets in motors, it is pursuing a feasibility study for a mine in Vietnam together with a Vietnamese firm.

South America accounts for just over 50% of the global production of lithium, and China's share is only about 4%. China, however, has no particular restrictions on export of lithium, and holds the additional benefit of proximity to major producers of secondary cells such as Japan and the Republic of Korea.

The feasibility study for a rare earth mine now under way in the Dong Pao mining concession in the western part of Vietnam is scheduled for completion in June 2010. The concession has an estimated 550,000 tons of deposits, and Sojitz sees prospects for yearly production in the range of 6,000 to 7,500 tons (in terms of oxides). If the company makes the decision to embark on commercial mining, it intends to export virtually the entire output to Japan.