EXCLUSIVE: N. Korea Wants Rare Metal Investment by Japan Firms

Tokyo, April 22 (Jiji Press)--North Korea invited Japanese
companies in January to invest in a program to produce vanadium, a rare
metal, Jiji Press learned Thursday.
This is the first time that North Korea has sought Japanese
participation in a actual business project since Yukio Hatoyama became
Japan's prime minister in September 2009.
Vanadium is used in high-tension steel plates for automobiles and
pipelines.
By taking advantage of the vanadium program, North Korea apparently
is hoping to restore its relationship with Japan. Ties between the two
nations have been strained over a number of issues including the abduction
of Japanese nationals by North Korea.
North Korea's natural resources are attracting the attention of
South Korea, China, Europe and the Unites States.
According to an industry source, North Korea unofficially proposed
Japanese companies participate in extracting and refining vanadium from a
peat layer located in the southwest of the country.
However, the Japanese side has shown little enthusiasm due to a
number of pending issues between the two countries and Japan's ongoing
economic sanctions against Pyongyang, the source said.
North Korea's underground natural resources, including iron ore,
nonferrous metals and uranium, are estimated to be worth some 300 trillion
yen, according to South Korean and other research agencies.
While China is taking the lead in investing in resource-related
operations, North Korea is concerned about China's too much influence in the
country, a Japanese government source said.
In July last year, Chinese media reported the seizure of vanadium
that was being smuggled from China to North Korea.
North Korea does not have the technological know-how to extract and
refine the rare metal.
High-tension steel plates are also used in military hardware such
as aircraft and rockets. The seizure of the vanadium was especially of
interest to Western intelligence agencies.


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