JOGMEC’s strategical support systems
for metal mining activities

By Hirotoshi KUNITOMO

0Contents

1. Establishment of JOGMEC
2. Metals Related Activities（1）Support for Exploration and Development（2）Support for mine pollution control in Japan（3）Research and Development（4）National Stockpiling of Rare Metals

3. JOGMEC Branch Office
4. Conclusion

11. Establishment of JOGMECJapan Oil, Gas and Metals National Corporation (JOGMEC)
has been established on February 29, 2004, integrating
Metal Mining Agency of Japan (MMAJ) and Japan National
Oil Cooperation (JNOC), with the mission to ensure a stablesupply of energy and nonferrous metals for Japan.
1963

MMAJ
・Establishment of the Metallic Exploration
Financing Agency of Japan

1964

・Geological survey and Exploration activities
started and the name changed to the Metallic
Minerals Exploration Agency of Japan.

1967

JNOC
・Establishment of Japan Petroleum Development
Corporation (JPDC)

1972

・To improve the technology for exploration andproduction of oil and gas, Technology Reserch
Center (TRC) was established in JPDC.

1973

・Mine pollution control activities started and thename changed to the Metal Mining Agency ofJapan.

1978

・The national stockpiling program begun and thename changed to Japan National Oil Corporation(JNOC)

1983・National Stockpiling of rare metals started.

2001

・The function expanded to add; funding facility for
asset acquisition.

2004.2 Establishment of JOGMEC

22. Metals Related Activities（1）Support for Exploration and Development① Information collection, analysis, and dissemination② Geological Surveys③ Outline of the JBES
④ Finance, investment and loan guarantees（2）Support for mine pollution control in Japan（3）Research and Development（4）National Stockpiling of Rare Metals

3（1）Support for Exploration and Development①Information collection, analysis, and dissemination
・ JOGMEC collects information and materials on mining such as geologyand mine data overseas, mineral exploration and development state, aswell as mining policies, rules and regulations on mining, environmental
problems of foreign countries and analyzes them for the promotion ofmining activities by Japan in foreign countries.
・ For this reason, JOGMEC has Branch offices in London, Almaty, Beijing,Bangkok, Canberra, Vancouver, Mexico City, Lima, Santiago in order tocollect mining information and materials.
・ The collected information and materials and their analyzed result arepresented on the Internet or in the form of publications from the Mineral
Resources Information Center of JOGMEC.

4② Geological Surveys• Geological Survey Cooperated with a Japanese Company
When Japanese companies have obtained a mining license overseas,
JOGMEC conducts a geological survey by collecting the necessary
expenses from the companies. The survey includes geology,
geophysics, geochemistry, drilling, and tunneling, which clarify thegeological conditions and possibility of mining by the private companies.

• Financial Support for Joint Survey of Japanese and foreigncompanies.
When Japanese companies conduct mineral exploration overseas incooperation with foreign companies, JOGMEC subsidizes the survey
costs of the Japanese companies. The subsidies cover the geologicalsurvey, geophysical survey, geochemical survey, drilling survey, andtunneling survey.

5③ Outline of the JBES・ Joint Basic Exploration Scheme (JBES) was implemented as a
new mineral exploration program in 2003.
・ JOGMEC conducts the JBES under a consignment contract with
the Ministry of Economy, Trade and Industry (METI).
・ Two Primary Objectives of the JBES
-accelerating mineral production and resultant economic
growth in developing countries, and-contributing to a stable supply of mineral resources to Japan.
・ Major Target
Currently primary interest is placed on Copper projects especiallyin Asia and Latin America.

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・ JV Partner
Governmental organizations or private companies which holdmineral properties in developing countries.
・ JV Agreement- Ordinary joint venture exploration agreement (Farm-in agreement),
i.e.JOGMEC acquires an option of equity interest of the Property
expending exploration fee.
- An option acquired by JOGMEC will be transferred to a Japanesecompany with the first priority, if exploration results are positive anda Japanese company wishes a further exploration.
・ BudgetA typical annual project budget between US$100,000 to $1million isenvisaged, however this will be flexible depending on the project.
Typical period will be 1 to 5 years.

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Framework of JBES

Consignment

METI
ODA BudgetTransfer(if exploration results are positive
and a Japanese company wishes
a further exploration,)

Japanese Company

JV Agreement

JOGMEC

Partner

Operator
Exploration Expenditure
Acquiring Option of Equity

Providing Property(opportunity to exploration)
Receiving exploration results

Unincorporated JV
Exploration
Additional and Detailed Exploration

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④ Finance, investment and loan guarantees
Outline of Loan, Equity Investment and Loan Guarantee Schemes of JOGMEC(excluding oil and gas)
SchemeLow Interest Loan

Equity Investment

Loan Guarantee

Eligible Company

Japanese Company or Foreign
Company owned by JapaneseCompany (More Than 50% Shares)

Japanese Company or Foreign
Company owned by JapaneseCompany (More Than 50% Shares)

Japanese Company

Eligible Business
Category

Metal Mining Company which
Engages in Mineral Exploration

Metal Mining Company which Engages
Metal Mining Company which
in Exploitation, Dressing, Smelting andEngages in Mineral Exploration
Refining

Project

Exploration Project outside Japan

Joint Major Exploration Project
outside Japan

Mine Development outside Japan

Metal Mineral

Base Metal, Rare Metal, Rare Earthand Uranium

Base Metal, Rare Metal andUranium

Base Metal, Rare Metal and Rare Earth

Maximum Coverage

within 50% or 70% of Project Costdepending on Metal Mineral

within 50% of Total Investment

within 80% of Each Bank Loan
(within 50% of JBIC Loan)

Annual Rate

Interest: 1.6% (As of October, 2004)

Redemption Period

within 15 Years (Including Respite
Period within 5 Years)

Guarantee Fee Rate: 0.4%9(2) Support for mine pollution control in Japan

Open working
Underground Stopping area

Waste/tailing dam

Mine Drainage•

Filtered
Water
Discharge
Water Utilization

Neutralizing
Precipitates

Measures of Mine
Drainage treatment

Research and Consultation
for Local Government• Engineering Servicefor Local Government• Management of“Reserve for Mine Pollution
Control Works” and “MinePollution Control Fund”

Measures against
Sources of Pollution

JOGMEC support for Local
Governments, which manage themine pollution control after the mineclosed and they had no mine owners.

Neutralizing Operation•International Environmental
Cooperation

Outline of Mine Pollution Control

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Framework of Research and Consultation for mine
pollution control- Assessment of Mine Pollution Preventive Measures- Comprehensive Information System of Abandoned Mines- Technical Training
METI
Step 1Step 2

Step 3

Request of Researchand Consultation

Basic Planning by
Researchand Consultation

Trust of Designand Planning

Detailed Planning by
Consultation and Management

Trust ofSupervisionof Construction

Supervision ofConstruction
by Consultation andManage-ment

Flow Chart of Mine Pollution Control Workat Abandoned Mine without Licensed Miner

LOCAL GOVERNMENTSUBSIDY(10/10)

EXCHANGE OFINFORMATIONREQUESTREPORT

JOGMEC
Inquiry

Technical Advice

RESEARCH

Advisory Committee on Mine
Pollution Control Technology
ABANDONED MINE WITHOUT
LICENSED MINER

Outline of Research and Consultation

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Engineering Service for mine pollution control- Design and Planning- Supervision of Construction- Management of Facilities
SUBSIDY(3/4)

LOCAL GOVERNMENT

METI

TRUST
EXCHANGE OFINFORMATIONJOGMECDESIGN ANDMINEREPORT POLLUTIONCONSTRUCTION
WORKSUPERVISION
FOR WORKABANDONED MINE WITHOUT
LICENSED MINER

Outline of Engineering Service

The Matsuo Neutralization Plant

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（3） Research and Development
Energy use rationalization / Development of recycle -hybrid systems
Ni recovery as ferronickel
Unutilization of Co, Discard of MM and high energy consumption

Used secondary battery of hybrid automobile

Purpose of this project

Dome stic se lls estimation of hybrid automobile
1,800

Thou sands automobiles

1,600

1.7million automobiles at 2010

Development of rear metal recovery technology(recycle of metal resources)

1,400
1,200
1,000
800600400

Ni-MH secondary battery for automobile use

200

Including Ni,Co,MM and so on

01999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Basic study / Research of actual situation(theoretical research / Research for new technology)

Ye ar

ASR generation by shredding(One million ton per year)

Automobile shredder residue
Terminated automobile

Lead battery(Pb recovery at lead smelters)

Including Cu,Pb,Zn and so on

Automobile shredder residue

Development of reusable slag making technology(Metal recovery / Utilization of slag as aggregates)

Body/Platform(steel scrap recovery)(around 5million automobiles per year)
ASR : One million ton per year
Metal content : Cu3.3%,Zn0.97%,Pb0.4%

Incineration to landfill
Tightness of landfill space

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Treatment Technology for Exhaust Gas and Wastewater from Smelteries••With recent rapid economic development, China is now facing serious pollution,
especially that caused by exhaust gas and wastewater from smelteries.
In order to improve the environment, the best suited technologies for treating suchpollution are jointly researched by JOGMEC with China.
Project implementation schedule
1999 2000 2001 2002 2003 2004

Research in Japan
Pilot Plant
DesignManufacture & Installation
Operation Study
Invitation of Researchers
Follow up Project

Pilot Plant

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（4） National Stockpiling of Rare Metals① Establishment and Development of the Rare Metals Stockpiling Program
・ The Rare Metals Stockpiling Program was established in 1983 in response tothe experience of two oil crises. The crises revealed a vulnerability that lay in theeconomic foundation of resource scarce Japan.
・ This government-private partnership was created as one of the rare metals
integrated solutions, following a report by the Ministry of Economy, Trade andIndustry/ the Industrial Structure Council in 1982, and with the view to achieve
national economic security.

② Overview of the Release/ Sale of National Stockpiling・ In the event of war or internal unrest occurring in countries supplying principal
rare metals to Japan, or if supplies from overseas fall short duo to a strike or
accident during transportation, JOGMEC sells national stockpile under emergency
release.
・ It also sells a potion of the stockpile when rare metal prices surge substantially(sales during rising).

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③ Rare Metals Stockpiling Program
ProgramNational stockpiling

Private stockpiling

Responsible
Organizations

JOGMECPrivate stockpilingSupervised by Japan Rare
Metals Stockpiling Association

Selected metals

Nickel, Chromium, Tungsten, Cobalt,
Molybdenum, Manganese, Vanadium
Objectives
To maintain smooth industrial Voluntary stockpiling that
activities and establish
is in line with actual usage
national economic security
by businesses
Locations
Centrally managed in
Individually held andTakahagi stockpilingmanaged at 50 differentwarehouses in Ibaraki
sites
prefecture
Target stockpiling42 days of standard
18 days of standard
consumption in Japan
consumption in Japanlevels（70% of target）（30% of target）
Total 60 days of standard consumption in Japan16

3. JOGMEC Branch Office
OfficeJurisdiction

E-mailLondon (UK)Europe, Africa, Middle East

kamura@jogmec.org.uk
takahashi@jogmec.org.uk

Canberra (Australia)

Oceaniamkamiya@cyberone.com.au

Vancouver (Canada)

Canada, U.S.A.

nakatsuka@jogmec.ca
tomura@jogmec.ca
miyatake@jogmec.ca

Almaty (Kazakhstan)

Russia, New Independent States

jogmec@nursat.kz

Mexico (Mexico)Central America

jogmec@prodigy.net.mx

Bangkok (Thailand)

SE Asia, SW Asia

ichihara@mozart.inet.co.thBeijing (China)

China, Mongolia

osame@jogmec.cn

Lima (Peru)

Peru, Bolivia, Ecuador, Colombia,
Venezuela

ommjlima@chavin.rcp.net.pe

Santiago (Chile)

Chile, Brazil, Argentine, etc.

nakayama-ken@entelchile.net
feebrey@terra.cl17

4. Conclusion(1) JOGMEC invite the Overseas Partner for
Joint Venture Project of Exploration in JBES.
(2) JOGMEC Branch office of 9 cities in theworld are the Counter Point of Global.
Partners.
(3) Please don’t hesitate to contact ourBranches.

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