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Evaluating the sufficiency of Japan׳s mineral resource entitlements for supply risk mitigation

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  • Hatayama, Hiroki
  • Tahara, Kiyotaka

Abstract

The Japanese government and industries have been attempting to secure the future availability of mineral resources, because Japan imports most of its metals. To mitigate supply risk, the acquisition of mineral interests in foreign mining projects has been declared a pillar of the government׳s resource strategies. The sufficiency of the mineral interests held by Japanese companies, however, has not been evaluated quantitatively from a long-term perspective. By focusing on resource entitlements that accompany mineral interests, we developed an indicator named “reserve entitlements to demand ratio” that can be used to compare the sufficiency of mineral interests held between different metals. We then calculated the indicator for 17 metals and found that Japan held relatively high levels of entitlements for niobium, tungsten and lead in 2012, whereas it was quite low for palladium, platinum, and tin. The results revealed the possible overrating of supply risk for those highly-entitled metals and vice versa in the past assessments because they failed to consider the mineral interest as a criticality component. The developed methodology supports the choice of measures for securing mineral resources in Japan׳s resource strategy.

Suggested Citation

  • Hatayama, Hiroki & Tahara, Kiyotaka, 2015. "Evaluating the sufficiency of Japan׳s mineral resource entitlements for supply risk mitigation," Resources Policy, Elsevier, vol. 44(C), pages 72-80.
  • Handle: RePEc:eee:jrpoli:v:44:y:2015:i:c:p:72-80
    DOI: 10.1016/j.resourpol.2015.02.004
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    References listed on IDEAS

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    Cited by:

    1. Wang, Peng & Chen, Li-Yang & Ge, Jian-Ping & Cai, Wenjia & Chen, Wei-Qiang, 2019. "Incorporating critical material cycles into metal-energy nexus of China’s 2050 renewable transition," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    2. Morita, Tamaki & Higashida, Keisaku & Takarada, Yasuhiro & Managi, Shunsuke, 2018. "Does acquisition of mineral resources by firms in resource-importing countries reduce resource prices?," Resources Policy, Elsevier, vol. 58(C), pages 97-110.
    3. Armstrong, Margaret & D'Arrigo, Rafael & Petter, Carlos & Galli, Alain, 2016. "How resource-poor countries in Asia are securing stable long-term reserves: Comparing Japan's and South Korea's approaches," Resources Policy, Elsevier, vol. 47(C), pages 51-60.
    4. Ran Motoori & Benjamin McLellan & Andrew Chapman & Tetsuo Tezuka, 2019. "Resource Security Strategies and Their Environmental and Economic Implications: A Case Study of Copper Production in Japan," Energies, MDPI, Open Access Journal, vol. 12(15), pages 1-18, August.
    5. Lapko, Yulia & Trucco, Paolo & Nuur, Cali, 2016. "The business perspective on materials criticality: Evidence from manufacturers," Resources Policy, Elsevier, vol. 50(C), pages 93-107.
    6. Gulley, Andrew L. & McCullough, Erin A. & Shedd, Kim B., 2019. "China's domestic and foreign influence in the global cobalt supply chain," Resources Policy, Elsevier, vol. 62(C), pages 317-323.
    7. Wang, Ran & Cheng, Jinhua & Zhu, Yali & Xiong, Weiwei, 2016. "Research on diversity of mineral resources carrying capacity in Chinese mining cities," Resources Policy, Elsevier, vol. 47(C), pages 108-114.
    8. Shigetomi, Yosuke & Nansai, Keisuke & Kagawa, Shigemi & Kondo, Yasushi & Tohno, Susumu, 2017. "Economic and social determinants of global physical flows of critical metals," Resources Policy, Elsevier, vol. 52(C), pages 107-113.
    9. Kim, Juhan & Lee, Jungbae & Kim, BumChoong & Kim, Jinsoo, 2019. "Raw material criticality assessment with weighted indicators: An application of fuzzy analytic hierarchy process," Resources Policy, Elsevier, vol. 60(C), pages 225-233.
    10. Keisuke Nansai & Kenichi Nakajima & Sangwon Suh & Shigemi Kagawa & Yasushi Kondo & Wataru Takayanagi & Yosuke Shigetomi, 2017. "The role of primary processing in the supply risks of critical metals," Economic Systems Research, Taylor & Francis Journals, vol. 29(3), pages 335-356, July.
    11. Schmid, Marc, 2019. "Mitigating supply risks through involvement in rare earth projects: Japan's strategies and what the US can learn," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    12. Shule Li & Jingjing Yan & Qiuming Pei & Jinghua Sha & Siyu Mou & Yong Xiao, 2019. "Risk Identification and Evaluation of the Long-term Supply of Manganese Mines in China Based on the VW-BGR Method," Sustainability, MDPI, Open Access Journal, vol. 11(9), pages 1-23, May.

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