watershed project strengthening says md

Tungsten from mine north of Cairns could be used for Japanese bullet trains.

Nick Dalton

Friday, October 11, 2013

© The Cairns Post


TUNGSTEN from a $100 million mine north of Cairns could soon be used to make the next generation of bullet trains in Japan.
The Vital Metals Watershed project near Mt Carbine involves the Japan Oil, Gas and Metals National Corporation (JOGMEC)which has just signed a critical Memorandum of Understanding with the Queensland Government.
Vital managing director Mark Strizek said the project was strengthening and the MOU could pave the way for future investment in the venture by Japanese giants Mitsubishi or Sumitomo.
Last month the company doubled its employment estimates for the project to 200 workers during construction and 120 in operation. It is hoped construction would start late next year with production beginning in 2016. Plans are for 6000 tonnes of tungsten concentrate a year worth about $270 million today.
Mr Strizek said there had been "a significant change in the outlook of our Japanese friends and colleagues".
"Following a couple of decades of stagflation there is a determination and optimisation for the future," he said.
"Abenomics and now Tokyo 2020 are transformational events that are resulting in a positive outlook for the future.
"There are large infrastructure projects being planned for road and rail. The new generation of hyper speed trains (that make the shinkansen look slow) are being planned for rollout in 2025 and out to 2040.
"In our discussions with the metal makers and, more importantly, their raw material buyers, there was a consistent theme of where will we get the raw material needed for the new tooling and rolling stock?
"The joint venture with JOGMEC places Watershed front and centre into this supply equation.
"The recent move by JOGMEC to sign an MOU with the state of Queensland is a reflection of the importance the Japanese place on Queensland as a reliable partner for Japanese industry."
In a statement JOGMEC said Queensland was "one of the resource-richest lands in the world and, for over half a century, has been one of the most important natural resources suppliers for Japan".
"The MOU is for collaboration in the development of its resources including coal, oil/gas and minerals/metals.
"It is expected that the MOU will enhance the relationship between Queensland and JOGMEC, and lead to the mutual benefit of exploring opportunities in the development of Queensland resources and securing a steady resource supply for Japan."
Mr Newman said the combined investment potential of organisations of JOGMEC and the Japan Bank for International Co-operation was "staggering".
"The fact that Japan is showing such strong interest in investing in Queensland is proof of the strong relationship that has been building ... for decades," he said.