ID :
16150
Sun, 08/17/2008 - 01:27
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Shortlink :
https://oananews.org//node/16150
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METI eyes support for Japan firms' acquisitions to secure resources
TOKYO, Aug. 16 Kyodo - The industry ministry has decided to extend financial support to Japanese companies for their acquisitions of foreign resource-related firms as part of efforts to secure stable supplies of mineral resources such as iron ore and rare metals, ministry sources said Saturday.
The Ministry of Economy, Trade and Industry plans to seek a budgetary allocation of about 20 billion yen for the project for fiscal 2009 starting in next April when it files requests with the Finance Ministry later this month,the sources said.
The decision comes at a time when prices of natural resources have continued to rise amid tightening supply in the global market coupled with growing demand inemerging economies such as China.
Resource-scarce Japan relies on imports from overseas for nearly all its necessary mineral resources and a stable procurement of supplies is one of itskey policy tasks.
At present, Japan Oil, Gas and Metals National Corp., a METI affiliate, extends low-interest loans to finance part of purchase costs of development rights of overseas mines by Japanese firms such as nonferrous makers or to invest intheir mine development.
However, development rights to promising overseas mines are dominated byAustralian and Brazilian major mine developers dubbed resource majors.
To back up Japanese firms' efforts to gain more development rights in major overseas mines, METI decided to expand the scope of coverage of financial support to the acquisition of foreign firms holding such development rights byJapanese companies, the sources said.
The ministry will also assist Japanese firms' efforts to enhance exploitation technology as cooperation with overseas firms in the exploration of mines willbe instrumental in securing the supply of natural resources, they added.
The international price of copper, which is used for electric wires and electronic devices, has more than quadrupled since 2003, though the price hasshown a downtrend recently.
The Ministry of Economy, Trade and Industry plans to seek a budgetary allocation of about 20 billion yen for the project for fiscal 2009 starting in next April when it files requests with the Finance Ministry later this month,the sources said.
The decision comes at a time when prices of natural resources have continued to rise amid tightening supply in the global market coupled with growing demand inemerging economies such as China.
Resource-scarce Japan relies on imports from overseas for nearly all its necessary mineral resources and a stable procurement of supplies is one of itskey policy tasks.
At present, Japan Oil, Gas and Metals National Corp., a METI affiliate, extends low-interest loans to finance part of purchase costs of development rights of overseas mines by Japanese firms such as nonferrous makers or to invest intheir mine development.
However, development rights to promising overseas mines are dominated byAustralian and Brazilian major mine developers dubbed resource majors.
To back up Japanese firms' efforts to gain more development rights in major overseas mines, METI decided to expand the scope of coverage of financial support to the acquisition of foreign firms holding such development rights byJapanese companies, the sources said.
The ministry will also assist Japanese firms' efforts to enhance exploitation technology as cooperation with overseas firms in the exploration of mines willbe instrumental in securing the supply of natural resources, they added.
The international price of copper, which is used for electric wires and electronic devices, has more than quadrupled since 2003, though the price hasshown a downtrend recently.
