Announcement of "Strategy for Ensuring Stable Supplies of Rare Metals"

The Ministry of Economy, Trade and Industry (METI) has compiled a "Strategy for Ensuring Stable Supplies of Rare Metals" in light of the results of the study conducted by the Mineral Resources Subcommittee, Advisory Committee for Natural Resources and Energy (headed by Tetsuro Urabe, Professor, Graduate School of Science at The University of Tokyo). The four pillars of the strategy are: (i) Securing Overseas Resources, (ii) Recycling, (iii) Development of Alternative Materials, and (iv) Stockpiling. METI will improve and strengthen resource and energy policies further.

Background

Rare metals are indispensable for the manufacturing of automobiles and IT products, etc. Therefore, it is extremely important to ensure stable supplies of such metals from the standpoint of maintaining and strengthening the competitiveness of Japan’s manufacturing industry. In the meantime, the environment surrounding the supply of such metals remains unstable and there are concerns about both a possible international supply crunch and deficient supplies.

Increasingly concerned about global supply shortages, the Cabinet decided to formulate "a comprehensive strategy to ensure stable supplies of rare metals including recycling of scraps as well as ensuring resources" as part of the "Follow-ups and Revision of the New Economic Growth Strategy" approved by the Cabinet Office in September 2008.

For this reason, METI has been holding the Mineral Resources Subcommittee, Advisory Committee for Natural Resources and Energy since October 2008 to discuss a comprehensive strategy to ensure a stable supply of rare metals. Based on discussions, METI formulated a draft strategy to ensure stable supplies of rare metals and heard public comments from June 12 to July 11, 2009. As a result, METI hereby announces the "Strategy for Ensuring Stable Supplies of Rare Metals".

METI will continue its effort to ensure stable supplies of rare metals based on the strategy.

Major Components of the Strategy

(1) Focused, Strategic Approach
The strategy points out the importance of determining the levels of priority for the different kinds of rare metals that need to be secured and of adopting a focused, strategic approach to high priority rare metals depending on their characteristics toward the prompt, effective and efficient realization of stable supplies of rare metals.

The strategy is based on the fact that evaluation of the supply situation is the most important factor in the determination of the relative priority of different mineral species. The strategy urges the government to consider various elements when evaluating the stability of supply. These elements include not only supply-demand and mine development trends, but also the degree to which production is concentrated and distribution characteristics. Other factors include recycling, the status of supply of alternative materials, the trends of new energy and energy-saving product and technology development trends and corporate strategy.

(2) Four Pillars for Securing Rare Metals
(i) Securing overseas resources
The strategy calls for increased Japanese support for mining development in foreign countries and infrastructure development in the surrounding areas through the extension of official development assistance (ODA). The strategy also calls for active cooperation for technology transfer and environmental conservation where Japan can capitalize on its strength. The strategy urges the government to actively utilize functions of Japan Oil, Gas and Metals National Corporation (JOGMEC), etc. to ensure stable supplies of risk money depending on capital demands.

(ii) Recycling
The strategy calls for the recycling of scrap rare metals from compact appliances such as cellular phones and digital cameras that have a high rare metal content per unit and the recycling of used products such as hard metal tools. The strategy urges the government to facilitate the recovery of used rare metals further by establishing a new recycling system and better utilizing the existing system. The strategy points out the importance of promoting the recovery and recycling of rare metals through research and development of recycling technology, and the importance of creating a recycling-oriented society toward the establishment of an appropriate resources recycling system that will operate within Asia.

(iii) Development of alternative materials
The strategy calls for development of system to strengthen and promote vertical partnerships between upstream industries and downstream industries and cross-industry and cross-sector partnerships to promote research and development activities leading to nanotechnology-based practical applications of alternative materials. The strategy also calls for creation of a business environment including creation of a R&D base which provides the use of nano-level measurement instruments and analyzers, etc. for government-industry-academia partnerships and cooperation initiatives.

(iv) Stockpiling
The strategy calls for the government to flexibly increase or release reserves of some rare metals to be stockpiled based on supply and demand trends, etc. and to continuously evaluate metal species that are not stockpiled to determine whether they should be stockpiled or not based on market trends and the progress of recycling of each species. The strategy urges the government to identify industrial needs especially for metal species that require close attention and estimate their impacts on market conditions, and to start stockpiling such metal species promptly if possible.

(3) Development of a common infrastructure toward securing of rare metals
(i) Human resources development in the resources sector
The strategy urges the government to make active efforts to develop domestic human resources supporting overseas resource businesses toward securing resources, to systematically develop overseas human resources through formulation of roadmaps, etc., and to establish an international network of personal contacts in the resource sector.

(ii) Enhancing the technical capabilities of the resources sector
It is important in order to maintain Japan's position as a leading nation that the strategy puts emphasis on not only strenghening the technology it holds for securing natural resources, but serves to push Japan's leading world-class technology to an even higher level.

(iii) Integrated efforts
The strategy points out the importance of the integrated efforts of many parties concerned, ranging from resources development to the manufacturing of end products in ensuring stable supplies of rare metals.

Release Date

July 28, 2009

Division in Charge

Mineral and Natural Resources Division
Agency for Natural Resources and Energy

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