India, Japan alliance must for rare earth search

India, Japan alliance must for rare earth search

By Monika Chansoria | 17 October, 2015
The need for collaboration in this field is vital because China continues to restrict exports, by using tariffs.
At a time when the momentum and stakes in exploring seabed minerals is gaining ground, the technological innovations in deep-sea exploration in the Indian Ocean Region hold immense potential for Indo-Japanese collaboration. Amid the larger framework of the Indo-Japanese strategic collaboration, Tokyo and New Delhi have signed a substantial agreement in September 2014 on the commercial contract between Indian Rare Earths Limited (IREL) and Toyota Tsusho Corporation (TTC) for the exploration and production of rare earths and are working towards finalising the commercial contract and commencement of commercial production at the earliest.
The need for collaboration in this arena becomes vital more because producing almost 95% of the world’s rare earth elements until 2011, China continues to restrict exports by means of quotas and export tariffs. In fact, heavy dependency on rare earth imports from China can be gauged from the fact that Japan receives 82% of its rare earth elements from China and for Beijing, rare earth elements being exported to Japan stand at just 40%.
By earmarking a $1.5-billion corpus for developing alternative sources of rare earths, there is an effort to notch up joint venture partnerships to secure supplies of rare earth elements, with Japanese firms backed by the government entering into partnerships including between Sumitomo Corp and the Kazakhstan National Mining Co — Kazatomprom; Toyota Tsusho and Sojitz partnering with Vietnam’s Dong Pao project; Japan Oil, Gas and Metals National Corporation (JOGMEC) partnering with India to explore for REEs and establish a processing facility; and JOGMEC seeking investments in Australia’s Lynas Corporation. Advances in high-end technologies, depleted easy-to-reach minerals onshore have boosted the idea for offshore mining — mainly because metals can be fifteen times the quality of land deposits using these methodologies.
Indo-Japanese collaboration in the field of rare earths holds immense potential in the backdrop that Japan is the second largest consumer of rare earths globally and a vital component of Japanese policy of regional integration has been its “rare earths diplomacy initiative”, as part of which, Japan has been the key in building capacities including opening a Rare Earth Research and Technology Transfer Centre in Hanoi, Vietnam. Moreover, Japan’s Natural Resources and Energy Agency has commissioned Japan Oil, Gas, Metals National Corporation to develop robotic deep-sea mining technology to evacuate minerals. The primary aim is to stabilise the supply of rare metals used for high-tech equipment.
Deep-sea mining has officially been recognised as a future frontier of scientific research in India as evident from the recent acquisition of deep-sea exploration ship Samudra Ratnakar from South Korea, equipped with sophisticated deep-sea survey instruments. All these provide it with a qualitative edge over other survey ships when it comes to oceanographic research and enable it for an accurate survey of the seabed, and analysis of the excavated material. India has secured an exploration contract from the International Seabed Authority to mine polymetallic nodules in the Central Indian Ocean over 150,000 sq km. According to an estimate, the total mass of nodules in the area allocated to India in the Indian Ocean Region is 380 million metric tonnes. However, the Samudra Ratnakar alone will not be sufficient to find and extract materials, and therefore, India should seriously consider a proposal for deep-sea mining and production technology from Tokyo under the strategic dialogue framework as well as acquisition of more deep-sea exploration vessels.
The Industrial Development Corporation of Odisha Limited (IDCOL), and Indian Rare Earth Limited (IREL), operating under the Department of Atomic Energy, have signed an MoU to set up a mineral separation plant in the Ganjam district of Orissa that will undertake beach sand mining and mineral processing to produce limonite, garnet, sillimanite, rutile, zircon and monazite. Moreover, a subsidiary of Japan’s Toyota Tsusho Corporation is already based at Vishakhapatnam, and is involved in the production of REEs while also operating a monazite sand rare earth production base. Recently, Indian Rare Earths Ltd has sought clearance for rare earths mining from sand in the coastal stretch of around 2,500 hectares at Bramhagiri (Puri district), and Japanese collaboration in this sphere could prove vital.
The areas identified for deep-sea mining in Japan are the hydro-thermal deposits in the Okinawa trough northwest of Okinawa Islands, and the Bayonnaise submarine caldera — believed to contain among the world’s richest seabed deposits of gold, silver and rare earth elements. The economic viability of deep-sea mining has been under the scanner for a while, given that the cost for a single mining site could be anywhere above $1.6 billion. As Japan remains committed to increase R&D investments into material use efficiencies, it is prudent to argue that joint collaboration between India and Japan in the Indian Ocean to explore and produce rare earths remains the way to go forward.
 

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