Discovery of Ocean Bed Rare Metals Is the Way for Japan to Become a Resource-Rich Nation

"An area with a high concentration of rare metals has been discovered off the coast of Minami-Torishima. Large-scale salvage operations are slated to commence next year [2025] to determine the feasibility of their practical exploitation. Administered by Tokyo, Minami-Torishima is an island in the Ogasawara group and the easternmost point in Japan."

When the Nippon Foundation and the University of Tokyo jointly announced the discovery of rare metals on the seabed off Minami-Torishima in June, it caused quite a stir. It was welcomed as encouraging news since it suggested new possibilities for the future of resource-poor Japan

*Yohei Sasakawa, Chairman of the Nippon Foundation (Courtesy of Nippon Foundation)*

Bolstering Economic Security

If ways can be found to make practical use of these undersea resources, it would provide a significant boost to Japan's economic security. Furthermore, it could develop into a business capable of propelling the economy to a new stage of development.

As a first step, with a view to initiating commercial operations in four to five years, we propose to establish a "platform" within which a wide range of participants from government, industry, and academia can work together. This would serve as a model for promoting development.

At this point, this is purely a private-sector initiative. However, I strongly hope that the Japanese government will take the lead and demonstrate strong leadership.

The survey, conducted between April and June 2024, investigated nearly 100 seabed locations within the Minami-Torishima EEZ. Surveys took place at depths ranging from 5,200 to 5,700 meters. It confirmed a concentration of manganese nodules totaling approximately 230 million tons in an approximately 10,000 square kilometers area.

Manganese nodules (also called polymetallic nodules) are precipitates of trace metals contained in seawater that have formed spherical lumps over thousands or millions of years. Fish teeth, shell fragments, or clumps of mud often form the nuclei. They range in size from a few centimeters in diameter to the size of a softball.

Examination of the composition revealed that the main components were iron and manganese. About 0.3% to 0.4% of the major rare metals are cobalt and nickel.

75 Years Worth of Cobalt

The survey estimated that there are about 610,000 tons of cobalt and 740,000 tons of nickel within the 230 million tons of manganese nodules. That would satisfy Japan's needs for cobalt for 75 years and nickel for 11 years.

For now, the ore feasibility study will involve collaborating with foreign companies experienced in seabed resource operations. It will aim to raise about 2,000 tons of nodules per day from the seabed. There will then be a review of the technologies required and the costs involved. Moreover, the plan calls for thorough consideration of possible impacts on preservation of the seabed.

A government-business-academia platform is expected to serve as a model for promoting commercialization. It will seek participation by a broad range of participants, including universities, advanced technology, construction, shipping, and chemical industries, as well as trading companies.

Demand for cobalt and nickel is soaring due to the spread of electric vehicles and smartphones. However, Japan depends almost entirely on imports of these critical materials. At present, only a few countries produce these materials.

Moreover, resource nationalism has been starkly on the rise in recent years. Amidst an international scene in considerable flux, Japan's current position of relying entirely on imports is extremely unstable and problematic.

Achieving Self-Sufficiency in Rare Earths

China's restriction of exports of rare earths, a type of rare metal, to Japan, is still fresh in our memory. That incident occurred in the wake of the 2010 collision between a Japan Coast Guard vessel and a Chinese fishing boat near the Senkaku Islands in Okinawa Prefecture. It caused great turmoil in the Japanese economy.

A year earlier in 2009, the Japanese government proposed a four-pronged strategy for ensuring an adequate supply of rare earths. It consisted of "securing overseas resources," "strengthening recycling," "developing alternative materials" and "building up stockpiles." However, there could be no better solution than achieving self-sufficiency.

The seabed area surveyed to date accounts for 430,000 square kilometers or only about 2.3 percent of the Minami-Torishima EEZ. According to Professor Yasuhiro Kato of the University of Tokyo Graduate School of Engineering, who was in charge of the survey: "There are other areas with high densities of manganese nodules within the EEZ. It is entirely possible to make it [commercial exploitation] economically viable."

It has also been confirmed that the EEZ contains mud rich in rare earths.

Making the Leap to a Resource-Rich Nation

Oceans account for 70 percent of the earth's surface. Furthermore, in recent years the mining of mineral resources worldwide has been expanding from land to sea.

Turning to Japan, a nation made up of islands of diverse sizes, the total area for our territorial waters and EEZ ranks sixth in the world.

Seafloor hydrothermal deposits and rare earth mud, both believed to be rich in metal constituents, are widely distributed. Also, as mining technology improves, costs will fall and the number of developable ocean areas will consequently increase.

The International Seabed Authority has authorized development in the open ocean. However, the existence of vast territorial waters and EEZ offers a major advantage in terms of stability for project implementation. Japan even has the potential to make the giant leap from being a resource-poor country to becoming a resource-rich nation.

If that were to happen, it would alleviate some of the enormous cost of resource imports, improve our trade balance, and provide Japan with more diplomatic clout. With that in mind, I contributed an essay to The Sankei Shimbun Seiron column in February 2023 entitled "Making Rare Earths a Pillar for Strengthening Diplomatic Influence."

That opinion has grown even stronger since then.

Going with an All-Japan System

During the "30 lost years" that followed the collapse of Japan's Bubble economy and continue even today, Japan's economy and politics have both stagnated and Japan's standing in international society has rapidly diminished. There has been a tremendous response to the news about the manganese nodules. It reflects the hope that this godsend will enable us to finally break out of this malaise.

This project has just gotten underway, but to pave the way for Japan's future as a maritime nation, many things will need to be done. They only begin with enacting relevant laws. It is my sincere hope that the establishment of an "All-Japan" system will bring the realization of this dream a bit closer to becoming a reality.

(Read this Sankei Seiron column in Japanese.)

By Yohei Sasakawa, Chairman, The Nippon Foundation