Advanced Material Japan Diversifies Rare Metal Sources

Tokyo based rare metal trading firm, Advanced Material Japan Corporation tries to secure resources countries around China including Mongolia and Vietnam. The firm will develop new resources of tungsten and rare earth, for which China is the largest producing country and the market concerns supply shortage, to keep stable supply for Japanese users. The firm also increases the import from Central and South America while the firm keeps strong connection with traditional supplier countries of Russia and Central Asian countries to diversify the sources. The world largest rare metal producing country of China tries to restrict export of the metal resources to meet rapid growing domestic demand. The government announced termination of value added tax return and processing deal trade in 2006 to reduce the export.Advanced Material Japan posted 62% higher recurring profit at 457.4 million yen with 93% higher sales at 12.517 billion yen for the first half year to September from same period of 2005. The president Shigeo Nakamura expects Chinese lower export could impact on the results after January 2007 when 60-70% of Advanced Material Japan’s business relates with China. The firm expects Vietnam, Mongolia and countries around China could become alternative sources for the metals. The firm already secures Tungsten sources when the firm waits sample supply. The firm is willing to invest to local mines in fiscal 2007. The firm also tries to expand the relationship with traditional sources in Central and South America including largest niobium producer of Brazil, largest lithium producer of Chile, Cuba with nickel and cobalt resources.