tantalum guff of interest

UPDATE 1-Toshiba to develop, procure metals from Kazakhstan
Fri Jun 20, 2008 1:39am BST

By Mayumi Negishi

TOKYO, June 20 (Reuters) - Japan's Toshiba Corp (6502.T: Quote, Profile, Research) is to sign an agreement with Kazatomprom on a partnership to develop rare metals in a bid to counter rising raw materials prices, a Japanese government source said on Friday.

Kazakhstan state-owned firm Kazatomprom holds 10 percent of Toshiba's U.S.-based Westinghouse nuclear power unit, and the agreement would follow a move by Toshiba last year to buy uranium rights to the Kharassan mine in southern Kazakhstan.

Japanese firms, heavily dependent on China for rare metals, have been wary of China's moves earlier this year to raise export taxes on minor metals such as manganese, silicon and tantalum. They have been courting resource-rich Kazakhstan.

Rare metals, such as tantalum and hafnium, are used in products ranging from electronics devices to control rods in nuclear plants.

Securing a stable supply of such raw materials is essential for a company like Toshiba, whose pillars of growth include semiconductors and its nuclear power business.

Toshiba President Atsutoshi Nishida is also due to meet Kazakh President Nursultan Nazarbayev during a tour of a Toshiba train factory in western Tokyo on Friday.

Shares of Toshiba were down 0.9 percent at 850 yen at 0032 GMT, against a 0.2 percent decline in the benchmark Nikkei average .N225. (Additional reporting by Risa Maeda; Editing by Michael Watson)