Sumitomo in rare earth talks with Molycorp, others
2010-12-07 11:33:04 【Print】
Sumitomo Corp, Japan's third-biggest trading house, said on Tuesday it is in talks with various producers, including Molycorp Inc of the United States, on the supply of rare earths.
It is reported on Tuesday that Sumitomo is taking a stake in Molycorp, boosting shares in the U.S. producer.
It is said an agreement may be reached this week and shipments are expected to begin in spring and run through 2012.
Sumitomo, which is planning to invest about 10 billion yen ($120 million) in Molycorp's mine expansion plans, may apply for assistance through the Japan Oil, Gas and Metals National Corp.
It said Japan's biggest trading house, Mitsubishi Corp, had signed a one-year contract to import part of Molycorp's inventory, aimed at importing 1,000 metric tons of rare earths in a year.
A Mitsubishi spokesman said on Tuesday the company was checking the report.
Japanese companies have been moving to secure reliable sources of rare earths, vital for making auto parts and high-tech products, since China, the top supplier, cut its export quotas on them by more than half in September, sending prices of the minerals soaring.
The is said Sumitomo plans to import nearly 2,000 tons of rare earths next year, including both new output and inventoried stock.
An agreement may be reached this week and shipments are expected to begin in spring and run through 2012, it said.
Shipments are seen growing to 3,000 metric tons the following year -- the equivalent of 10 percent of current Japanese demand.
It is reported on Tuesday that Sumitomo is taking a stake in Molycorp, boosting shares in the U.S. producer.
It is said an agreement may be reached this week and shipments are expected to begin in spring and run through 2012.
Sumitomo, which is planning to invest about 10 billion yen ($120 million) in Molycorp's mine expansion plans, may apply for assistance through the Japan Oil, Gas and Metals National Corp.
It said Japan's biggest trading house, Mitsubishi Corp, had signed a one-year contract to import part of Molycorp's inventory, aimed at importing 1,000 metric tons of rare earths in a year.
A Mitsubishi spokesman said on Tuesday the company was checking the report.
Japanese companies have been moving to secure reliable sources of rare earths, vital for making auto parts and high-tech products, since China, the top supplier, cut its export quotas on them by more than half in September, sending prices of the minerals soaring.
The is said Sumitomo plans to import nearly 2,000 tons of rare earths next year, including both new output and inventoried stock.
An agreement may be reached this week and shipments are expected to begin in spring and run through 2012, it said.
Shipments are seen growing to 3,000 metric tons the following year -- the equivalent of 10 percent of current Japanese demand.
