Sumitomo Corp and Kazatomprom Sign for Rare Earth Recovery JV Company

Mr. Susumu Kato, president of Sumitomo Corp., and Mr. Vladimir Shkolnik, president of Kazatomprom, signed an agreement to establish a joint venture company for the rare earth recovery project in Kazakhstan at Ministry of Economy, Trade & Industry in Tokyo on Thursday. Mr. Masayuki Naoshima, Minister of Economy, Trade & Industry, and Mr. Kanat Saudabayev, Secretary of State – Foreign Minister of Kazakhstan, attended the signing ceremony.

They will establish Summit Atom Rare Earth Company (SARECO) on April 4, headed in Ust-Kamenogorsk. Kazatomprom holds 51% shares of the JV and Sumitomo Corp. holds 49%. SARECO will launch feasibility study for resource survey and technology development and try to start rare earth recovery at 3,000 tonnes per year soon.

Japanese government targets to secure rare earths including dysprosium and neodymium those which are essential for electric vehicle’s motors. Kazakhstan is the second largest supplier of natural uranium in the world. This JV is one of Japan and Kazakhstan cooperation in mineral and resource field.