Japan and Kazakhstan Conclude MOU for Rare Earth Collection JV

Japan Oil, Gas & Metals National Corporation (JOGMEC), an incorporated administrative agency to assist upstream activities for mineral resources and energies, announced on Friday the agency concluded a memorandum of understanding (MOU) with Kazatomprom and Kazakhstan’s Ministry of Energy & Mineral Resources for a cooperative business to collect rare earths. Japan’s Ministry of Economy, Trade & Industry and Sumitomo Corp. also joined in MOU.

This cooperative business is expected as a new rare earth supply resource to collect dysprosium and neodymium used for high-performance magnets applied to hybrid cars and electric vehicles. In August 2009, Sumitomo Corp., Japanese major trading house, and Kazatomprom, Kazakh national atomic company, reached a basic agreement in the cooperative business to collect rare earths from uranium ore residue. They will establish a joint venture company by the end of 2009 and start rare earth collection by utilization of existent facilities in Kazatomprom’s Ulba plant.