TOKYO (Reuters) -Japan’s Marubeni Corp said on Monday it will invest in a mineral sands project of Australia’s RZ Resources, following in the footsteps of compatriot JX Advanced Metals which struck a similar deal with RZ earlier this year.
Under the agreement, 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 and certain marketing rights, if the project’s feasibility is confirmed.
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.
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.
($1 = 1.5389 Australian dollars)
(Reporting by Yuka Obayashi; Editing by Muralikumar Anantharaman)
