OREANDA-NEWS. April 02, 2010. Kazakhstan’s National Nuclear Company KazATomProm and Sumitomo Corporation of Japan signed a founding document in Tokyo to establish Summit Atom Rare Earth Company (SARECO).

Establishment of the JV is a practical implementation of President Nazarbayev’s instructions issued following his visit to Japan in 2008.

For Kazakhstan, development of rare and rare earth metals and related industries is a new vector of industrialization efforts; it will enable to launch high value-added industries and occupy a niche at the developing market of rare earth metals.

The signing ceremony was held in Tokyo at the Ministry of Economy, Trade and Industry. On the Kazakh side the document was signed by Vladimir Shkolnik, Head of the KazAtomProm National Nuclear Company, and on the Japanese side the document was signed by Susumu Kato, Sumitomo Corporation President and CEO. The ceremony was attended by Kazakhstan’s Foreign Minister Kanat Saudabayev and Japanese Economy, Trade and Industry Minister Masayuki Naoshima.

KazAtomProm will own 51% in the JV, while Sumitomo Corporation will hold 49%. SARECO HQ is to be based in Ust-Kamenogorsk (Kazakhstan).

The JV is designed to be a vertically-integrated enterprise producing high value-added rare metals products.

At the initial stage SARECO will be carrying out a feasibility study to produce rare and rare earth metals. The project envisages construction of a mining and processing complex, a hydrometallurgical facility to produce collective ore concentrates, a chemical facility to separate rare earth metals into individual metal oxides. Uranium tailing dumps, in-situ leach liquids, and mineral deposits are going to be used as sources of rare and rare earth compounds and metals.

The newly established JV is also to deal with exports and sales of its products. SARECO is expected to start operations as early as in June 2010.

SARECO was preceded by a memorandum of understanding and mutually beneficial cooperation to develop rare earth metals in Kazakhstan signed with Sumitomo Corporation and JOGMEC, as well as an agreement outlining basic principles to carry out a joint feasibility study on rare earth metals production signed with Sumitomo Corporation. Both documents were signed October 22, 2009 in Astana at the 10th joint sitting of the Kazakh-Japanese and Japanese-Kazakh Committees for Economic Cooperation.

Japan is among the largest importers of rare earth metals. The new line of cooperation with Kazakhstan further diversifies rare earth metals supplies to the internal market of Japan.

Sumitomo Corporation is among the largest trade companies of Japan. Established in 1919, the company is represented in 69 countries and employs 40 000 employees. The company has a vast experience of implementing large-scaled projects in Kazakhstan.