Japanese firms to invest in exploration

NEW YORK: New York-based consulting firm KWR International plans to launch a new initiative to help Japanese investments to reach exploration and production companies around the world have.

KWR would to facilitate business agreements and investments between Japanese trading companies, industrial firms and other major consumers of natural resources with exploration and production companies.

The initiative is backed by Japan Oil, Gas and Metals National Corporation (JOGMEC) and Nippon Export and Investment Insurance (NEXI).

The emphasis will be on identifying firms that possess attractive properties that offer promising sources of energy, base, rare earth and industrial metals, non-metals mining and related technologies and services, a press note said.

KWR is working with JOGMEC and NEXI to schedule meetings with Japanese firms and investors. Preference will be given to companies that possess strong management, a competitive business structure, and a real interest and capacity to develop and sustain cross-border business and investment relationships.

The initiative comes when developed and developing nations attempt to expand and to diversify their procurement of resources around the world. Despite rising global demand for a wide range of natural resources, supplies remain constrained due to a lack of new exploration and production activity.

Explaining the initiative, the press note said, while much attention is paid to the growing needs of China, India and other developing countries, Japan remains the world's second largest economy.

With few natural resources of its own, it is the world's third largest consumer of crude oil, copper and zinc, the fifth largest consumer of lead and seventh largest consumer of natural gas. Similar statistics can be found for many other base and rare earth metals, commodities and other natural resources.

Japanese trading and industrial firms to seek out new procurement sources in order to "ensure sustainable inventories of a wide range of resources," it said.

As a result, they are now more willing to consider investments into, and production agreements with, more geographically diverse and smaller projects than in the past, it added.

While the information and opinions contained within have been compiled from sources believed to be reliable, KWR does not represent that it is accurate or complete and it should be relied on as such. Accordingly, nothing in this article shall be construed as offering a guarantee of the accuracy or completeness of the information contained herein, or as an offer or solicitation with respect to the purchase or sale of any security. All opinions and estimates are subject to change without notice. KWR staff, consultants and contributors to the KWR International Advisor may at any time have a long or short position in any security or option mentioned.

KWR International Advisor

Editor: Dr. Scott B. MacDonald, Sr. Consultant

Deputy Editors: Dr. Jonathan Lemco, Director and Sr. Consultant and Robert Windorf, Senior Consultant

Associate Editor: Darin Feldman

Publisher: Keith W. Rabin, President

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