Table 1-3-2 Reserves of Non-Ferrous Metals and Major Producing Countries

Major resource producing countries (2009)	Total share of top 3 countries
Rare earth	(1) China	97%	(2) India	2%	(3) Brazil	0.50%
Vanadium	(1) China	37%	(2) South Africa	35%	(3) Russia	26%
Platinum	(1) South Africa	79%	(2) Russia	11%	(3) Zimbabwe	3%
Tungsten	(1) China	81%	(2) Russia	4%	(3) Canada	3%
Molybdenum	(1) China	39%	(2) United States	25%	(3) Chile	16%
Lithium	(1) Chile	41%	(2) Australia	24%	(3) China	13%
Indium (*)	(1) China	50%	(2) Korea	14%	(3) Japan	10%
Cobalt	(1) DR Congo	40%	(2) Australia	10%	(3) China	10%
Manganese	(1) China	25%	(2) Australia	17%	(3) South Africa	14%
Nickel	(1) Russia	19%	(2) Canada	13%	(3) Indonesia	13%

(*) : Indium is not measured as the amount of mineral ore production, but as the amount of unprocessed indium produced as a by-product.

Source: US Geological Survey, Mineral Commodity Summaries, 2010

Figure 1-3-24 International Price of Rare Metals (market prices)

molybdenum, which is used for additive agents in steel and special steel, rose sharply in 2005 due to supply shortages caused by tremendous demand in developing countries and production stoppages and reductions following a series of mine accidents around the world. However, after that, the price fell due to the recession caused by the financial crisis.

As shown above, the demand structure of rare metals is becoming unstable. Securing a stable supply has become a significant issue.

Source: Metal Economic Research Institute Japan Critical Metals 2009

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## Oil Spill Disaster in the Gulf of Mexico

Crude oil prices have risen around the world. The trend of depletion in the supply of oil that can be drilled easily, and the movement to drilling in deep water or drilling of unconventional gas or oil, will become widespread from now on. Production of oil and gas by drilling in deep water amounted to 1.5 million barrels per day in 2000, and 7.4 million barrels per day in 2010.

On April 20, 2010 a catastrophic event occurred in the Gulf of Mexico when a drilling rig caught fire due to backflow gas and burst into flames, killing 11 and injuring 17 of the 126 crew members working on the platform. After a second explosion on the morning of April 22, the rig sunk to the bottom of the ocean, spreading heavy oil across the ocean surface (17,000 barrels, equivalent to approximately 2.7 million cubic meters). The situation went from bad to worse; however, when it was revealed that oil was also spilling from a seafloor oil-gusher.

It took nearly three months to completely stop the flow of oil from the disaster, because the leak occurred deep in the ocean, at 1,500 meters below sea level. The unprecedented disaster released about 4.9 million barrels (approximately 0.79 billion cubic meters) of crude oil, causing an estimated ecosystem service damage of 4.3 billion dollars.

Responding to this accident, as temporary measures while investigating the cause of the accident, the United States government decided to: prohibit drilling

in deep water areas (500 feet or deeper) until the sixth month from the accident; called off a round of bidding for drilling in the Gulf of Mexico, including deep water areas, which had been planned for August 2010; prohibited drilling off the shore of north Alaska for one year after the accident; and postponed bidding for a drilling area off the shore of Virginia.

Major countries are carefully watching the investigation process. Although they have not stopped their drilling activities, some countries have taken action to tighten regulations. Italy announced the prohibition of mining within five miles from beach areas (and a partial ban up to 12 miles), as well as a revision of its drilling plan in the Ionian Sea and in the Adriatic Sea. This accident will become the trigger for governments, industries, and companies to reevaluate the risks of drilling in deep water, and to seek new modes of good practice in this field.

Oil Spill Disaster in the Gulf of Mexico

Source: Ministry of the Environment based on CIA, Oil – Proved reserves, Oil – production

## 3 Economic Trends in the Environmental Sector

In order to examine how Japan can contribute to achieving a society that can overcome resource bottlenecks and reduce environment impacts while achieving economic growth and eradicating inequality, it is important to evaluate Japan's advantages in economic status in the environmental sector. The following describes the future market size of the environmental sector, patents in the environmental sector, and financial or governmental assistance for the research and study of technological innovation. In addition, the economic status of the environmental sector in Japan will be discussed based on the observation of short-term economic survey.