METI Requests 30B Yen Budget for F2009 to Secure Minerals

Mineral & Natural Resources Devision of Resources & Energy Agency, which is a subordinate agency of Minsitry of Economy, Trade & Industry (METI), will request a draft budget at approximately 30 billion yen for fiscal 2009 (Apr09-Mar10) at the end of this month. The agency positions 30 billion yen budget for stable procurement of mineral resources including nonferrous base metals, rare metals and iron ores.Global demand for mineral resources has expanded especially from emerging countries in current years. On the other hand, global supply has been led into an oligopolistic situation by major mineral companies. Mineral resource prices jumped up in a recent few years. Japanese industries recognize significance of mineral development but they are facing difficulties such as severe terms for project entries or number decrease of favorable new mining sites.Japanese government aims to reinforce total support for mineral resource development from geological survey to exploration and development. The support will be served by governmental agencies and financial institutions such as Japan Oil, Gas & Metals National Corporation (JOGMEC), Japan Bank for International Cooperation (JBIC) and Nippon Export & Investment Insurance (NEXI).The government will also advance resource diplomacy, rare metal recycling and alternative material development.