FX.co ★ Japan discovers rare earth metals in the sea

Japanese explorers have found large deposits of rare earth minerals below the sea floor, The Daily Telegraph reports. The quantity and the value of the findings have not been disclosed. Yasuhiro Kato, the professor from Tokyo University and the leader of the research team, explained that the reserves are just 2 to 4 meters from the seabed surface. He added that the concentration of rare metals is higher “than anybody ever thought existed”. However, it is still unknown when the potential production of rare earth metals is possible.
In the middle of March Lockheed Martin, a US office in the UK, declared about its plan to extract rare earth metals from the sea as well. The company under the aegis of London got the right to develop 22 thousand square meters of the Pacific floor between Mexico and Hawaii.
Japan lacks rare earth metals and highly depends on China’s import.Tokyo was reported to be up for purchasing rare metals from Kazakhstan since 2013. Nevertheless, the volume of imports will cover just 7.5% of the country’s overall demand.
Currently China has a total monopoly in the sphere as it extracts about 97% of rare earth metals worldwide. Electronics manufacturers such as the USA and Japan are the largest consumers of these materials.
China regularly restricts the export of rare metals with the help of quota tax to fight with smuggling and environmental abuse, according to the Chinese government. Japan and the United State accuse China of forcing foreign companies to locate plants in China. In 2012, due to the quotes imposed, Japan, the USA, and the EU filed a complaint against China at the WTO.
Rare earth metals include 17 elements such as niobium and terbium. These elements are widely used in electronics, mobile phone batteries, during oil refining process as well as in other spheres.