Toyota Tsusho to Secure Rare Earth Resource in India, Vietnam

Toyota Tsusho Corporation announced on Tuesday the firm starts rare earth business. The firm acquired Wako Bussan, which is Tokyo based rare earth specialized trading firm, for 500 million yen securing Indian rare earth business network. Toyota Tsusho signed memorandum of understanding with Vietnamese state run mining company for joint venture. Toyota Tsusho will trade 10,000 tonnes per year in rare earth oxide through the transactions. The firm tries to secure stable sources in countries other than China, which represents more than 90% of world supply.

The firm acquired 119,100 shares in Wako Bussan on November 27. Toyota Tsusho renames Wako Bussan in mid-January 2009 and moves the office from Otemachi, Tokyo to Toyota Tsusho’s Tokyo head office in Marunouchi, Tokyo.

Wako Bussan supplies mainly light rare earth including lanthanum, cerium, neodymium and praseodymium for Japanese market as official importer of Indian state run company, Indian Rare Earth. The firm will supply annual 4,000 tonnes of rare earth from second half of 2010 after Indian Rare Earth resumes the operation. Toyota Tsusho tries to secure the source and customers through the acquisition.

The firm establishes mining joint venture with Vietnamese state run company. Toyota Tsusho secures 49% share in the joint venture and invests 7-10 billion yen for the development. They conduct feasibility study at Dong Pao deposit, northern part of Vietnam. They try to start operation in 2011 depending on the study. Toyota Tsusho will purchase all of the annual 6,000 tonnes of production from the deposit.