On August 17, 2011, Japan Oil, Gas and Metals National Corporation (“JOGMEC”, President: Hirobumi Kawano) has invested in exploration and development of Platinum Group Metals (PGMs) and Nickel of the Platreef Project promoted by ITOCHU Corporation.(“ITOCHU”, President: Masahiro Okafuji) in Republic of South Africa.
ITOCHU had acquired 10% interest of the developing company and been conducting the project with the operating company, Ivanplats Limited.(Ivanplats)
Per ITOCHU’s request, JOGMEC has decided to participate in the project in order to reduce the country risk by providing technical support and finance JPY 4.2 billion (equivalent to 1.5% of the fund) to ITOCHU’s owned exploration subsidiary. Since a Japanese major plant constructor JGC Corporation(Chairman and CEO Keisuke Takeuchi)also invests 0.5%, the project is going to be promoted by Japanese associative.
This project takes place at the north of Bushveld Complex, well known for containing more than 80% of the world’s platinum resources and accounting for over 70% of global platinum production.
Exploration drilling since 2000 has confirmed good platinum group metal mineralization with nickel, copper and gold, and has recently discovered a major high-grade underground deposit with excellent potential for expansion.
Close to 50% of the demand for PGMs comes from their use as catalysts to clean exhaust gas from automobiles. Since PGMs are indispensable to maintain and reinforce the competitiveness of key Japanese industries, PGMs have been designated as one of the most important rare metal categories in the natural resource acquisition policy of the Japanese Government.