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Toshiba to source rare-earths from Mongolia
Peter Clarke
11/26/2010 10:04 AM EST
LONDON – Toshiba Corp. has signed a memorandum of understanding with Mongolia's MNFCC LLC agreeing to discussions on cooperation in the development of Mongolia's mineral resources, including uranium, rare earth and rare metals products.
Many of the obscure minerals, metals and their oxides are used in electronics manufacture and have been rising in price in recent years as China has developed a monopoly position in their supply.
In July China reduced rare earth export quotas for the rest of the year by 72 percent, inflating prices more than six-fold for some rare earth materials vital to the energy, military, electronics and manufacturing sectors. China just has begun exporting rare earths to Japan after a two-month suspension due to a territorial row.
Naoto Kan, the Prime Minister of Japan, met the Mongolian President, Tsakhiagiin Elbegdorj, on Nov. 19, 2010, and the two agreed to build a strategic partnership and to secure mutually beneficial cooperation in developing mineral resources in Mongolia. Further moves to promote an economic relationship between Japan and Mongolia are expected.
Under the terms of the MOU Toshiba will conduct feasibility studies on key social infrastructure essential for securing Mongolia's continued economic growth, including thermal, nuclear and solar photovoltaic power systems and transmission and distribution networks and will seek to promote mutual development of mineral resources in an effort to secure a stable supply.
Related links and articles:
Rare earth supply chain: Industry’s common cause
Opinion: Japan’s three-step plan to depend less on China
Japan develops electric motor sans rare earth metals
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chanj
11/26/2010 12:49 PM EST
Building partnership with companies or countries which have abundance of rare earth material is inevitable in the near future. The independence from rare earth material shall be the long term goal. However, the world economy so far has been depending on transforming earth resources into a common currency. Will independence be really achievable in the near future? Regardless, how much rare-earth material exist on earth?
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Silicon_Smith
11/26/2010 1:07 PM EST
Very forward looking tactic. Especially love the part where Toshiba would be looking to ensure the economic growth of Mongolia to safegaurd its interests. Reminds of the imperialistic Japan of the past.
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Baolt
11/26/2010 9:23 PM EST
Mongolians and Japanese have historical bonds. Lots of mongolians are localized in Japan, in Hokkaido island u can meet with them everywhere. Of couse this makes sense to make connection to overcome china. Besides i dont think Toshiba will be willing to add considerable value of Mongolia's future growth. Its all about business. Mongolia is momently 1 of the worlds poorest country. Cheap work power, land Of course for japan good fishing.
The real rare-earth source is neither china or mongolia. Its Kazakhistan where almost all periodic table can be found. Who has the superior connection with kazakh authorities?
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Sheetal.Pandey
11/26/2010 3:48 PM EST
When government works to support the industry, its good for the people of that country. With China setting up strong conditions, its bound to happen. Its always good for the industries to have alternatives to source these critical minerals. The reason why China emerged as such a stong power is that knowingly or unknowingly the world's stongest countries gave them all the business. You see in all the big stores of US or canada almost everything is made in china.
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Robotics Developer
11/26/2010 9:26 PM EST
What a great idea. I wonder how many other countries have similar offerings of rare earth minerals? If I understand correctly, the US has rare earth minerals. I would suggest that the US take advantage of our resources and reopen the mines and start refining/production on our own. This would provide us with the needed materials and needed exports (if enough are here).
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yalanand
11/27/2010 12:10 AM EST
I think companies can no longer rely on any particular country especially china which is acting like big boss in this particular case, and its better to diversify their partnership with other countries as well. What happened to Japans plan of recycling the Rare earth elements ? Is it not yeilding any results ?
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daleste
11/28/2010 1:51 PM EST
I agree that we should mine our own minerals in the US first, but the labor cost will more than offset importing from another country. This is the same principle as the outsourcing of many jobs. It's just a business decision.
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eewiz
11/28/2010 2:08 PM EST
I dont know why China wanted to curb the exports. Many countries lost their confidence in China and They lost the business.
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will99878898
11/28/2010 8:03 PM EST
I bet same reason as US's alaska oil field. It's dirty and unfriendly to enviorment. US used to dig it's own oil but now prefers imports.
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Dave.Dykstra
11/28/2010 7:17 PM EST
Some additional diversity in sources is very much welcomed in the industry, and helping Mongolia develop and grow is probably an excellent tactic, especially given their proximity to China.
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goafrit
11/29/2010 12:23 AM EST
Welcome to the new arms race. It will be a tough road as China becomes bigger and more influential in the world. All will be redesigned.
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goafrit
11/29/2010 12:26 AM EST
This is a new dawn and it is telling us the new global redesign as China becomes more influential.
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pixies
11/30/2010 11:58 AM EST
Well, so far China can barely handle North Korea, let alone redesigning the world.
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