VZCZCXRO3247
RR RUEHFK RUEHJO RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0271/01 0352246
ZNR UUUUU ZZH
R 042246Z FEB 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 0555
INFO RUEHBJ/AMEMBASSY BEIJING 7574
RUEHOK/AMCONSUL OSAKA KOBE 6051
RUEHFK/AMCONSUL FUKUOKA 2264
RUEHNAG/AMCONSUL NAGOYA 0124
RUEHNH/AMCONSUL NAHA 4611
RUEHKSO/AMCONSUL SAPPORO 2822
RUEHOR/AMEMBASSY GABORONE 0041
RUEHSA/AMEMBASSY PRETORIA 0313
RUEHJO/AMCONSUL JOHANNESBURG 0021
RUEHBR/AMEMBASSY BRASILIA 0443
RUEHTO/AMEMBASSY MAPUTO 0202
RUEHAN/AMEMBASSY ANTANANARIVO 0117
RHMCSUU/DEPT OF ENERGY WASHINGTON DC

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