The state-owned Japan Organization for Metals and Energy Security should be able to invest in critical mineral projects without needing Japanese companies to participate, the industry ministry proposed on Thursday.
Until now, JOGMEC has had either to invest jointly with a Japanese company or pledge to later transfer rights if it acquires them independently.
The Ministry of Economy, Trade and Industry’s proposed revision is designed to try to increase critical mineral supplies as Japanese companies have struggled with the impact of China’s decision to tighten export controls on some rare earths and metals.
The ministry also cited rising global competition as a reason for its proposal, including U.S. backing for a Brazilian rare earths miner.
Presented on Thursday to an expert panel on mining policy, the proposal would allow JOGMEC to invest alongside foreign resource holders if waiting for Japanese companies to commit would delay project development and heighten the risk of supply disruption.
It would apply to the 20 minerals designated as essential materials under the Economic Security Promotion Act and eligible for government funding.
The ministry will consider the details of the scheme, taking into account suggestions from panel members, an official said at the end of the meeting on Thursday.
(Reporting by Yuka Obayashi; Additional reporting by Kentaro Okasaka; editing by Barbara Lewis)
