Digging deep for rare earths

illustration photo

Deputy Prime Minister Hoang Trung Hai has given in-principle approval to a rare earth exploration project in Phong Tho district’s Nam Xe commune.

Prior to that, the Ministry of Natural Resources and Environment (MoRNE) (on January 14, 2011), the Ministry of Industry and Trade (on April 13, 2009) and Lai Chau’s People’s Committee (on July 8, 2009) asked the government to approve implementing such a project in Nam Xe.

“The MoRNE is authorised to receive, appraise and process the necessary paperwork for the rare earth exploration project under current regulations,” said the Document No721/VPCP-KTN. Rare earth minerals are key elements for digital products such as cellphones, flat-screen TVs and hybrid cars.

Lai Chau’s Department of Planning and Investment deputy director Dang Van Chau told VIR the project was earmarked for Sojitz Corporation, which was making project surveys and exploration studies.

“The project may be granted a certificate this year. The Japanese side said it was also preparing necessary procedures for the project to receive this certificate,” Chau said.

Itochu Group’s chief officer for Vietnam Hiroaki Yashiro said Itochu was hunting for investment windfalls in exploiting rare earths in the Southeast Asian country’s northwestern region.

“Itochu is looking for Vietnamese supply sources of cerium [a substance of rare earths] which is used for casting industry,” he said.

Chau said: “Itochu and another Japanese firm Toyota Tsusho, a trading house procuring for auto giant Toyota Motor, came to Lai Chau to meet with local authorities in search of rare earth exploration and exploration windfalls. The authorities have agreed with Toyota-Tsusho’s plan to cooperate with Vietnam’s state-run Vinacomin for a project to explore and exploit rare earths in the province.”

Another Japanese firm Sumitomo was also reported by AFP to be performing a rare earth surveying project in northwestern Yen Bai province. Sumitomo expected to be given first lots of rare earths by 2013.

According to the MoNRE, Japanese government and enterprises have been accelerating their search for new supplies of rare earths around the world, including Vietnam. Japan’s annual demand for the minerals is over 30,000 tonnes and it depends on China for about 90 per cent of its supplies.

However, China, which accounts for about 97 per cent of the world’s total production of rare earth elements, about half of which are exported to Japan.

According to the department, China and South Korea also coveted rare exploration and exploration opportunities in Vietnam’s northeastern region.

The Australian newspaper reported early last month that Asia’s fourth largest economy South Korea would develop rare earths in Vietnam, Australia, Kyrgyzstan and South Africa this year. The move came after China in December, 2010 cut quotas on rare earth exports for the first half of this year by about 35 per cent.

The MoNRE said that Vietnam ranked fifth globally in rare earth reserves, which largely concentrate in Lai Chau and Yen Bai. At present, the minerals remain unexploited.