the role and activities of metals division of jogmec
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The Role and Activities of
Metals Division of JOGMEC
Hajime Hishida
JOGMEC Santiago Office
(Japan Oil, Gas and Metals National Corporation)
3rd Meeting of the Japan-Brazil Joint Committee
on Promoting Trade and Investment between METI and MDIC
Brasilia, Brazil, April 15, 2010
1Imports of Natural Resources in Japan
Oil Natural Gas Copper Zinc
99.7 % 96.3 % 100 % 97.1 %
Since Japan has few domestic natural resources, Japan depends on imports for almost all of its crude oil, natural gas, non-ferrous metals and minerals. Japan Oil, Gas and Metals National Corporation (JOGMEC), an incorporated administrative agency established by Japanese government, seeks to secure a stable supply of natural resources and energy to Japan, contribute to the industrial development of Japan and enrich the lives of all the Japanese people, through our various activities involving oil, natural gas, non-ferrous metals and minerals.
(2006)
22Establishment of JOGMEC
Ministry of Economy, Trade and Industry
Japan Oil, Gas and Metals National Corporation
(JOGMEC)
Since 1963 Since 1967
Established in February 2004
Metal Mining Agency of Japan(MMAJ)
Japan National Oil Corporation(JNOC)
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• Employee 476 (As of April 1, 2010)• Capital US$2.52 billion (As of March 31, 2009)• Budget US$16.5 billion (For Metals US$ 310 million) :FY2008• Location
– Head Office: Kawasaki City, Kanagawa Pref., JAPAN– Overseas Office: London, Moscow, Abu Dhabi, Beijing, Jakarta, Sydney, Vancouver, Washington, Houston, Mexico City, Lima, Santiago,
Mission::::Support Japanese companies to secure supply of natural resources including non ferrous metals and energy in Japan.
Activities of Metals Division::::Information Services, Mineral Exploration, Financing of Mine Development, R & D for Recycling, Stockpiling Rare Metals, Mine Pollution Control etc.
What is JOGMEC ?
441. Support for exploration and development of mines
# Collection, analysis, and dissemination of mining information
# Financing, investment and liability guarantees to Japanese companies
# Exploration
# R & D in exploration technology
2. Support for mine pollution control# Technical support for operations by local government
# Engineering service for local government in the management of
pollution control facility
3. Research and Development# Bioleaching for copper ore
# Recycling of metals
4. Stockpiling of rare metals
# 7 commodities (Ni, Cr, Mn, Co, W, Mo, V)
Activities of Metals Division of JOGMEC
5History of Copper Mining Industry in Japan
In the early 20th century, Japan was one of the world-largest producers of copper concentrate along with the USA and Chile. However, Japan’s domestic mineral resources have not been always competitive in the world market. After the peak of copper concentrate production in 1971 (121,000 t/y), production has continuously declined to almost zero because of the high exchange rate of Japanese Yen to US$, environmental issues, increased development costs and low metal prices of the market.
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20
40
60
80
100
120
140
1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Cu in concentrate (×103t)
・・・・During the 1970’s, Japan’s metal
mining industry had over 350 metal
mines including Cu, Pb, Zn, Au, Ag etc.
・・・・Now only one major mine, Hishikari
Au-Ag Mine, is operated in Japan.
Historical variation of Cu concentrate production in Japan
Source: METI
6JOGMEC’s clients in Japan
7Commodity 2004 2005 2006 2007 2008
World
Share
World
Rank
Iron ore (Mt) 270 345 350 360 390 17.7% 2
Bauxite (Mt) 21 22 22.7 25.4 21.7 10.4% 2
Manganese (Mt) 3.1 3.5 3.0 2.0 1.7 4.9% 8
Copper (t) 102,500 132,500 140,000 200,000 214,500 1.4% 15
Nickel (t) 31,998 36,562 36,224 37,380 37,700 2.5% 10
Titanium (t) - - 89,200 95,600 96,000 2.2% 10
Chromium (t) 445,000 394,000 370,000 410,000 630,000 2.6% 7
Zinc (t) 167,735 175,407 184,189 181,353 189,600 1.6% 13
Lead (t) - - - - 17,000 0.4% 22
Tin (t) - - - 9,600 9,600 3.1% 5
Gold (t) 42 44 43 47 49.2 2.3% 13
(x 1,000 t)
Commodity 2006 2007 2008
Iron 26,303 25,327 30,190
Iron (pellet) 4,192 5,434 10,042
Copper concentrate 21 38 21
Zinc 2.00 1.01 0.70
Nickel 4.62 4.40 4.38
Cobalt 37(t) 35(t) 60(t)
Gold 508(kg) 720(kg) -
Rare Earth 18(t) 13(t) -
Aluminium 222 228 218
Mineral Production
of Brazil
(Source: WBMS,USGS,DNPM)
Mineral Exportfrom Brazil
to Japan
(Source: Trade Statistics of Japan etc.)
Mineral Production of Brazil and Export to Japan
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【【【【 Liability Guarantee 】】】】
Loan
JOGMEJOGMEJOGMEJOGMECCCC
BANK
Guarantee
Mine Development
Japanese company
or
its overseas subsidiary
Investment
10~30%
Japanese company
or
its overseas subsidiary
【【【【 Loan or Investment 】】】】
JOGMECJOGMECJOGMECJOGMEC
Japanese
company
Investment
Exploration
Loan
Loan
JOGMEC provides financial assistance to Japanese
companies to help to reduce the risk involved in
exploration and mine development.
JOGMEC’s Financing Scheme
)
(Financing) CONFIDENTIAL
(Now Exploring)
DOWA Holdings Co., Ltd.
2007FY~ 300million yen
(Equity Capital) FRIEDA (Now Exploring)
OMRD Frieda Co., Ltd.
1975FY~
(Financing) EAST CHOISEUL ISLAND
(Now Exploring)
Sumitomo Metal Mining Co., Ltd.
2007FY 65million yen
(Financing) QUECHUA (Now Exploring)
1996FY
Mitsui Mining & Smelting Co., Ltd.
50 million yen
2007FY
Nippon Mining & Metals Co., Ltd.
1,800 million yen
(Financing) CASERONES (Now Exploring)
2006FY~
Mitsui Mining & Smelting Co., Ltd.
3,300million yen
Nippon Mining & Metals Co., Ltd.
6,600million yen
(Financing) EAST ISABEL (Now Exploring)
Sumitomo Metal Mining Co., Ltd.
2007FY 95million yen
(Equity Capital) MANGAN NODURE
(Now Exploring)
Deep Ocean Resources Development Co., Ltd.
1982FY~
… Equity Capital
… Financing
----Projects financially supported by JOGMEC----
(Financing) MAN (Now Exploring)
ITC Mineral Resources Development (U.S.A.) Inc.
〈100%Subsidary of ITOCHU Corporation〉
2008FY 163million yen
(Financing)ROPER BAR (Now Exploring)
ITOCHU Minerals & Energy of Australia Pty Ltd
〈100%Subsidary of ITOCHU Corporation〉
2008FY 150million yen
(Financing)SOUTHDOWN (Now Exploring)
Sojitz Resources & Technology Pty Ltd
〈100%Subsidary of Sojitz Corporation〉
2008FY 940million yen
(Liability Guarantee)ESPERANZA
2009FY~Marubeni LP Holding B.V
15,000 million yen… Liability Guarantee
1010JOGMEC’s JV Exploration Scheme
JOGMEC
METIPartner
Governmental Organizations,
Private Companies
・・・・Exploration Expenditure
・・・・Providing Properties(opportunities to exploration)
・・・・Receiving exploration results
JV Agreement (Farm-in Agreement)
Consignment
Unincorporated JV
・・・・Budget: US$ 100,000 to 1.5M・・・・Period : 1 to 5 years
Japanese Company・・・・Mining and Smelting companies
・・・・Trading House
Exploration
Additional and Detailed Exploration
tran
sfe
r
11Scheme for JV Exploration Project
・Target MetalsCopper, Zinc, Nickel, Cobalt, PGM, Indium, Tungsten, Rare Earth,Gold and Uranium etc.
・Project StageGrass-root preferable, advanced stage acceptable
・JV PartnerAny organization or company which has the mining license and theability to make an unincorporated JV contract with JOGMEC
・ Common Joint Venture Agreement (Farm-in Arrangement)
・ JOGMEC acquires the option of equity interest.
・ JOGMEC’s interest will be transferred to a Japanese company with thefirst priority, if the exploration result is positive and a Japanese company wishes to continue the exploration.
・Annual Budget: US $100,000 to $ 1.5 million for one project・Project Period: 1-5 years
1212JOGMEC’s JV Exploration Projects- March 2010 -
17 Countries 47 Projects and more............
Vietnam
Kazakhstan
Botswana
Canada
PhilippineCambodia
Mexico
ChileBrazil
ArgentineAustraliaSouth Africa
Indonesia
Lao PDR
Uzbekistan
Peru
USA
Rare Metals Projects Base Metals ProjectsUranium ProjectsGeologic Remote Sensing CenterTransferred (2005-2010)
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JOGMEC Exploration Activity has been increasing
JOGMEC’s Exploration Budget
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2004 2005 2006 2007 2008 2009
Fiscal Year
Millio
n U
S$
1414Exploration Technologies- Satellite Image Processing -
• JOGMEC has developed and implemented its own technique for satellite
image processing for Landsat, SPOT, JERS-1, ASTER, Hyperion data.
• This technique is now used widely for exploration and collaboration.
• Processing technique for newly launched satellite PALSAR is under
development.
ALOS (which carries PALSAR), JAXA Lithology map from AIRSAR matched highly with the published geological map in order tosimulate PALSAR data.
15Exploration Technologies- SQUITEM -
• JOGMEC has successfully developed a TDEM (Time-Domain
Electromagnetics)data acquisition system based on the HTS (high-
temperature superconductor ) SQUID (superconducting quantum interference
device) magnetometers. We call it SQUITEM.
• HTS SQUID can improve the depth of investigation and detectability.
• JOGMEC is currently utilizing SQUITEM for JOGMEC’s exploration.
SQUITEM data acquisition in MoroccoTDEM data acquisition system basedon the HTS SQUID magnetometers
(SQUITEM).
16Strategic Partnership with Vale
JOGMEC has established a geological remote sensingcenter in Botswana in July 2008.The center is to transfer remote sensing technology to SADC (Southern African Development Community).It is also JOGMEC’s exploration base in southern Africa.
MOU signing between JOGMEC Presidentand Vale CEO (May 2008)
JOGMEC has signed MOU with Vale for sharingdata obtained in the remote sensing center project and exchanging information on exploration technology, which is expected to promote mutual cooperation as a strategic partner.
Remote Sensing Center:Staff of JOGMEC,Lecturers of Vale and Trainees of Botswana
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Thank you.