METI to Support Iron Ore, Resource Securing Effort, Vice Minister

Japanese senior vice minister of Economy, Trade and Industry Teruhiko Mashiko said to a reporter of Japan Metal Bulletin late last week reaffirmed the government decided to support Japanese private sector’s resource acquisition for steel making raw materials and rare metals through diplomatic effort with originality after the government improved the legal system for the support. He also said the government will improve the support system for recycling industry to utilize more recycled resources. The government tires to support Japanese manufacturers’ effort for better international competitiveness through the resource strategy.

Mr. Mashiko said Japanese investment for resources is much less than such investment by China and India. The government will support such effort by private sector by utilizing Japan Oil, Gas and Metals National Corporation (JOGMEC), can invest in mining assets and guarantee debt for mining investment under revised law effective on July 1. The government will support acquisition of resources including iron ore, rare metals, nickel and copper.

Mr. Mashiko said the government should support also resource rich countries through closed communication. He said the government can support such supply countries in infrastructure development and human resource development along with technical support as Japanese advantage.

Mr. Mashiko said recycling industry’s role gets important more than before. He said the government tries to improve the recycling system including economical gathering system to utilize the limited resource in domestic industry. He indicated the government studies potential revision of automobile recycling law to provide tax incentive as lower fixed asset tax rate for washing equipments.

Mr. Mashiko said the government should reduce the corporate effective tax rate to international level of 25-30%. He said the first step would be around 5% lower tax for fiscal 2011 starting April while the tax for small business would decrease from current 18% to 11%.