Alconix Eyes Offshore Rare Earth, Rare Metal Resource Development

Alconix Corporation’s president Eiitsu Masaki said the firm seeks opportunity to secure rare earth source in Vietnam, Kazakhstan and other countries eyeing potential resource development. Mr. Masaki said the firm tries to realize molybdenum resource development in Mongolia and tungsten resource development in Russia in 3 years. He said the firm has existing rare earth supply contract with China and seeks smooth shipment to China while the firm has the inventory enough to the production through fiscal 2010 ending March 2011. However, the firm tries to diversify the source to improve the stability for the procurement.

Mr. Masaki said rare earth market doubled to annual 100 billion level in years due to higher demand for automobile. He warns Chinese rare earth export will decrease more when Chinese makers start hybrid vehicle production.

Aloconix has 50% share in Japanese metallic titanium supply for electronic materials. The firm also has 70% share for nickel powder while the rare metal trading subsidiary, Advanced Material Japan has 20% share in tungsten compound supply. The group also trades indium, lanthanum, molybdenum and rare earth.

Aloconix expects the firm can clear mid-term results target in fiscal 2011 one year ahead of original plan in fiscal 2012. The firm makes new plan to improve profitability and expand investment. The firm also eyes merger and acquisition for growth opportunity including new business areas.