Japan plans to mine in Vietnam for rare earth metals used in high-tech manufacturing in a bid to reduce its dependence on China, which virtually monopolizes the global supply of the strategic materials, officials said yesterday.
Japanese Prime Minister Naoto Kan and Vietnamese Prime Minister Nguyen Tan Dung are expected to agree on the proposed deal in Hanoi later this month, a trade ministry official said.
Japanese Trade Minister Akihiro Ohata said Vietnam has a promising potential for rare earths production and Tokyo wants to jointly work with Hanoi on the exotic metals.
Rare earths are crucial in advanced manufacturing for items such as computer disk drives, mobile phones and hybrid car components. China produces about 97 percent of the world’s supply of rare earths.
Japanese Trade Ministry official Hideyuki Wakutsu said Japan and Vietnam will set up a joint venture to mine rare earths. He gave no further details.
China has blocked rare earths shipments to Japan since Sept. 21 in possible retaliation for Tokyo’s arrest of a Chinese fishing boat captain near the disputed Diaoyutai Islands (釣魚台).
The captain was released — and Beijing has repeatedly denied any official ban on shipments to Japan — but Japanese authorities said supplies have yet to resume.
The disruption has shaken Japanese industry, which is now looking for new suppliers of the exotic metals other than China and considering becoming a rare earth recycling center.
With the mining deal in Vietnam, Wakutsu said Japan wants to reduce its dependence on China for rare earth supplies. About 60 percent of China’s rare earth shipments go to Japan, he said.
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