London, September 8th (Argus) - The Japanese state energy security agency Jogmec and the Toronto-based development company Aclara Resources have jointly embarked on the exploration of rare earths.
Jogmec will provide up to 3 million US dollars in funds for the exploration activities within three years. Jogmec can choose to provide an additional 1.5 million US dollars in funds and extend the profit period by one year. After providing the funds, Jogmec will have the right to acquire a 30% participation interest in Aclara's Brazilian exploration project.
This agreement has the potential to guarantee the purchase. After the revenue is completed, Jogmec will have the right to purchase an equal amount of production as its participation interest, plus 10% of the future production of the project.
If Jogmec wishes, it can transfer its interests and rights to a Japanese company or consortium.
Aclara will manage and conduct the exploration and development. The company already has several projects under development, including the Carina project in Brazil, the Penco project in Chile, and a processing plant in Louisiana.
This agreement aligns with Jogmec's larger strategic plan to expand its role in the development of key mineral projects. Japan is considering allowing Jogmec to acquire shares in key mineral projects without a Japanese enterprise partner.
The Japanese government seems increasingly willing to accept greater financial risks to ensure the security of the long-term supply chain. A recent survey of Japanese purchasing executives shows that Japanese manufacturers are striving to find rare earths and currently can only obtain two-thirds of the required quantity.
