Japan Moves to Ease State Investment in Critical Minerals

Japan's Ministry of Economy, Trade and Industry (METI) has proposed giving the state-owned Japan Organization for Metals and Energy Security (JOGMEC) greater flexibility to invest in critical mineral projects. Under current rules, JOGMEC can only invest jointly with a Japanese company, or must commit to transferring rights later if it acquires them independently.

The proposed revision, presented to an expert panel on mining policy on Thursday, would allow JOGMEC to invest alongside foreign resource holders when waiting for a Japanese partner could delay development and increase the risk of supply disruptions. The change is aimed at boosting supplies of critical minerals, as Japanese firms face the impact of China's tighter export controls on some rare earths and metals.

METI also cited intensifying global competition, including U.S. support for a Brazilian rare earths miner, as a reason for the proposal. The new flexibility would apply to the 20 minerals designated as essential under Japan's Economic Security Promotion Act, which are eligible for government funding.

An official said the ministry will consider details of the scheme, taking into account feedback from panel members. The proposal marks a step toward more proactive state involvement in securing resources vital to Japan's economy and security.