Japanese public broadcaster NHK separately said Thursday the Japanese team had clinched a basic agreement with CBMM to obtain a 10 percent stake for $1.3billion. The official at Japan's Agency for Natural Resources and Energy noted more than 90 percent of niobium is mined and produced in Brazil.
" Demand for niobium is expected to grow as China, India and other emerging companies become more (technologically) powerful and produce more high-grade steel," said the official who declined to be named.
“Japan imports 90 percent of its niobium needs from Brazil but it is procured through markets, Japan needs to secure stable supply," he said. Japanese industry sources said China temporarily cut off exports last year during a territorial row between Asia's two largest economies. China is building strategic reserves in rare-earth metals, while the Japanese and South Korean governments say they have amassed some reserves and US analysts have called for a similar effort.
In February, Japan said it would cut its reliance on imports of key Chinese rare earth metals by roughly a third.