JOGMEC’s Role inSecuring the Supply of Critical Minerals

Hiroyuki KATAYAMAAssistant General Manager, JOGMEC Vancouver Office

Critical Metals Investment Symposium 2011January 22, 2011

11Natural Resources in Japan

Oil

Gas

Copper

Zinc

96.4%

100%

99.6%

98.8%

• Since Japan has few domesticnatural resources, Japandepends on imports foralmost all of its crude oil,natural gas, non-ferrousmetals and minerals.

Where do thosenatural resources

come from?

22

Mineral Commodity Summaries 2010, USGS

Top 5 Production Countries for Rare Metals

33Rare Earth - High Dependency on China

Necessary to diversifythe supply source of the critical minerals

China accountsfor 85-90% ofthe Japan’stotal importvolume of rareearths.

Trade Statistics of Japan,Ministry of Finance,1999-2009

4Japan’s Strategic Principles for Securing Supply of Rare Metals

Ministry of Economy, Trade and Industry (METI)compiled “Strategy for Ensuring Stable Supplies ofRare Metals” in July 2009.① Securing Overseas Resources

② Recycling

③ Development of Alternative Materials

④ Stockpiling

JOGMEC is one of the governmental entitiesto assume the above strategic principles.

55JOGMEC, Who We Are

• Japan Oil, Gas and Metals National Corporation (JOGMEC), anincorporated administrative agency, is established by the Japanesegovernment.

• The principal role of JOGMEC is to seek a Stable Supply of NaturalResources for Japan.

Ministry of Economy, Trade and Industry

Japan Oil, Gas and Metals National Corporation(JOGMEC)

Metal Mining Agency of Japan(MMAJ)

Since 1963 Since 1967

February 2004

Jurisdiction

Japan National Oil Corporation(JNOC)

66

Headquarter: Kawasaki (Suburban area of Tokyo)• Metals Strategy & Exploration Unit• Metals Technology & Financial Support Unit• Stockpile Unit• Oil & Gas Upstream Business Unit• Oil & Gas Upstream Technology UnitTwo research centers in Japan• Metals Technology Center• Technology & Research Center (Oil and gas)Worldwide network• 13 overseas offices gathering relevant information

• Vancouver office for metals-related activities in North American region

Organization of JOGMEC

7JOGMEC’s Activities related to Strategic Principles

① Securing Overseas Resources Promotion of Early-Stage Exploration

Support for Advanced-Stage Project

② Recycling Developing recovering technology for recycle

③ Development of Alternative Materials

④ Stockpiling Stockpiling Program of Rare Metal

88Early-Stage Overseas Exploration

• Take early-stage risks to promote overseas exploration

• Programs– Overseas field surveys

• Joint venture exploration by JOGMEC with a foreign company, thentransferring JOGMEC’s option interest to a Japanese company

• Cooperative survey with / technical support to a Japanese company

– Subsidies to exploration projects done by Japanese companies

• Target commodities– Base metals (Cu, Zn, Pb,...)

– Rare metals(Ni, PGE, Co, REE, Li, W,...)

– Uranium

H He

Li Be B C N O F Ne

Na Mg Al Si P S Cl Ar

K Ca Sc Ti V Cr Mn Fe Co Ni Cu Zn Ga Ge As Se Br Kr

Rb Sr Y Zr Nb Mo Tc Ru Rh Pd Ag Cd In Sn Sb Te I Xe

Cs Ba La Hf Ta W Re Os Ir Pt Au Hg Tl Pb Bi Po At Rn

Fr Ra Ac Rf Db Sg Bh Hs Mt Ds Rg

La Ce Pr Nd Pm Sm Eu Gd Tb Dy Ho Er Tm Yb Lu

Ac Th Pa U Np Pu Am Cm Bk Cf Es Fm Md No Lr

99Current Exploration Projects

15 Countries 48 Projects and more... Rare Metals ProjectsBase Metals ProjectsUranium Projects

ChileAustralia

Mongolia

USA

Canada

Mexico

South Africa

Botswana

Argentine

Brazil

Philippine

Indonesia

VietnamLaos

Cambodia

10Example: Greenfield Exploration Project

• Joint venture project with Montreal-based exploration company,Midland Exploration Inc., sinceFebruary 2010.

• The Ytterby region consists of 4properties, situated in Quebec, andNewfoundland and Labradorprovinces.

• The property in Quebec lies next tothe Strange Lake deposit which isabundant in Heavy Rare EarthElements.

• JOGMEC earns a 50% interest of theproject by spending C$2.7millionover 3 years.

OntarioQuebec

BritishColumbia Newfoundland

andLabrador

Ytterby project

Vancouver

Toronto

Montreal

Ytterby REE project

11Example: Generative Project

• Joint venture project withVancouver-based explorationcompany, Gold Canyon ResourcesInc., since January 2009.

• Project consists two parts - KratzSpring property survey andgenerative survey.

• The objective of the generativesurvey is to identify, analyze andperform metallurgical evaluations ofREEs from various IOCG styledeposits including those tailings orwaste dumps.

• JOGMEC has acquired 80% interestof the project.

Kratz Spring REE project

Tailings of anactive IOCG mine(Evaluated bygenerative survey)

Old portal forhistorical IOCGmine(Evaluated bygenerative survey)

12Support Programs for Advanced-Stage Projects

• Financial support to Japanese companies for overseasmineral exploration or development

• Programs– Supplying loans for overseas exploration

– Funding part of the equity capital

– Guaranteeing the liabilities of Japanese companies

• Target commodities– Base metals

– Rare metals

– Uranium

– Iron, Aluminum

H He

Li Be B C N O F Ne

Na Mg Al Si P S Cl Ar

K Ca Sc Ti V Cr Mn Fe Co Ni Cu Zn Ga Ge As Se Br Kr

Rb Sr Y Zr Nb Mo Tc Ru Rh Pd Ag Cd In Sn Sb Te I Xe

Cs Ba La Hf Ta W Re Os Ir Pt Au Hg Tl Pb Bi Po At Rn

Fr Ra Ac Rf Db Sg Bh Hs Mt Ds Rg

La Ce Pr Nd Pm Sm Eu Gd Tb Dy Ho Er Tm Yb Lu

Ac Th Pa U Np Pu Am Cm Bk Cf Es Fm Md No Lr

13Development of Technologies by JOGMEC

• Recycling technologies– Recovering rare metals from small discarded electric

devices

– Recovering tungsten, and other metals from wastecemented carbide tools

– Recovering rare earth metals

– Construction of a rare metal recycling system

• Hydrometallurgical technologies– Bio-leaching

14Rare Metals Stockpiling Program

Target metals Ni, Cr, W, Co, Mo, Mn, V, In, Ga

Purpose

• To secure a stable supply of rare metals

• To avoid disruption of social and economic activities

(For economic security, unlike the US strategic purposes)

Target quantity Total 60 days of standard consumption of Japan

Release concept

• Emergency release

• Sales during price rising

• Sales during normal time

Mean of stockpileCentrally managed in

national stockpiling warehouses

1515Summary

• JOGMEC is a governmental agency to seek to astable supply of natural resources to Japan.

• In order to secure the supply of mineral resources,our activities related to non-ferrous metals are:– Overseas explorations,

– Enforcement of R&D related to Recycling, and

– Rare Metals Stockpiling.

• JOGMEC’s support programs can contribute thediversification of the supply source of the criticalminerals.

Hiroyuki KATAYAMA

katayama@jogmec.ca

Thank you for yourattention

Vancouver office @1710-400 Burrard St.