By Yuka Obayashi TOKYO (Reuters) -Japan’s Marubeni Corp will invest in a mineral sands project owned by Australia’s RZ Resources, it said on Monday, following in the footsteps of compatriot JX Advanced Metals, which struck a similar deal with RZ earlier this year. If the project’s feasibility is confirmed, Marubeni will contribute A$15 million ($9.75 […]
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Japan’s Marubeni to invest in Australian critical minerals project
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By Yuka Obayashi
TOKYO (Reuters) -Japan’s Marubeni Corp will invest in a mineral sands project owned by Australia’s RZ Resources, it said on Monday, following in the footsteps of compatriot JX Advanced Metals, which struck a similar deal with RZ earlier this year.
If the project’s feasibility is confirmed, Marubeni will contribute A$15 million ($9.75 million) for options granting it up to 5% equity participation in RZ’s Copi mineral sands mine project in New South Wales along with certain marketing rights.
RZ, which owns the Copi project and a mineral separation and processing plant in Brisbane, Queensland, plans to produce heavy mineral sands products such as rutile, ilmenite, zircon, and monazite. These minerals are used in industries including aerospace, defence, and permanent magnets.
LOOKING FOR ALTERNATIVES AS CHINA RESTRICTS EXPORTS
The alliances come as Japan and its Western allies step up efforts to secure critical minerals supply chains outside China, which has been tightening export restrictions on key resources.
JX, a producer of advanced materials from copper and rare metals used in chips and telecommunications parts, became a strategic partner of RZ in June.
Marubeni, RZ, and JX will jointly work on developing the Copi mine project, upgrading RZ’s mineral separation plant, and enhancing RZ’s definitive feasibility study and environmental impact statement, Marubeni said in a statement.
JX said in a separate release that its participation in the project aims to secure a long-term, diversified supply of minerals, including minor metals and rare earths. It also cited the project’s location in a geopolitically stable region with well-established transport infrastructure, including shipping routes.
The project has received expressions of support from the Export-Import Bank of the United States and the Export Finance Australia, it added.
“Through Marubeni’s participation, we expect to leverage its network to secure sales channels for minor metals and rare earths, which we believe will further advance the project,” JX said, adding that it plans to expand similar partnerships.
($1 = 1.5389 Australian dollars)
(Reporting by Yuka Obayashi; Editing by Muralikumar Anantharaman and Joe Bavier)