This is a game changer
It has shown that NTU is focused on supplying the ROW and now prices will be at FOB with a suitable discount for a mixed Reo
There is very limited separation capacity outside of China and this is a major achievement to attract a partner of Sumitomos calibre
From the Sumitomo website
http://www.sumitomocorp.co.jp/english/business/article/id=233
"The current consumption of rare earths in Japan is 35,000 tons annually. Our company deals with about 10% of that total. To continue to expand our market share in the future, our urgent need was to secure suppliers. Since 2006, through our joint uranium mine development project with Kazatomprom, a Kazakhstan state-owned nuclear holding company, we found an opportunity to start a new business.
also
The factory has set an annual output target of 1,500 tons during the initial years and also plans to start exporting to Japan in January 2013.
Sumitomo has about 3500t annual sales of Reo and is looking to expand its market share.
Wisely it has not put all its eggs in one basket
1500t from Kazakhstan and
1500t from NTU
More importantly Sumitomo arranged finance for the Kazakhstan joint venture , Maybe they could also broker loans for to finance NTUs' capex
http://www.sumitomocorp.co.jp/english/news/detail/id=25526
"Building solid systems to ensure a stable supply of rare earth elements is considered as one of the top priorities in promoting expansion and sophistication of Japan's high-tech industry and driving technological innovation in the sector. Recognizing this, Sumitomo Corporation will make substantial contributions to meeting this challenge through this Kazakh project in cooperation with the Japanese government and JOGMEC
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