But Seoul officials cautious about specific progress in talks


South Korea and North Korea are considering carrying out a joint project developing rare earth minerals buried in the North but working-level discussions have been suspended since the death of former North Korean leader Kim Jong-il in December.

Korea Resources Corp., the South’s state-run resource explorer, confirmed Monday that they tested four rare earth samples from the North to see if they are economically exploitable, saying, “No specific discussions have been made yet.”

Rare earth minerals are compounds of rare earth metals that are used for high tech manufacturing of semiconductors, cars, computers and other advanced technology areas.

According to KORES, company officials visited the North in September and November last year to discuss issues related to a graphite mine in South Hwanghae Province, in which the company has invested.

At the time, North Korean officials asked them to study the economic feasibility of using the rare earth deposits. Industry watchers say about 20 million tons of rare earths are buried in the North.

“But the economic feasibility study, including on-site inspection, should consider diverse factors such as geographical environment and the infrastructure there. But we have yet to conduct the study,” said a KORES official.

“The issue has been discussed at the working-level. We haven’t reported to the Ministry of Knowledge Economy, the Ministry of Unification or Cheong Wa Dae. And we have no plan to do so for now.”

According to earlier media reports, KORES was scheduled to hold the third round of talks with the North after confirming the economic feasibility of the materials. But they could not continue talks due to the death of Kim Jong-il on Dec. 17.

The company was allegedly considering to process the North Korean materials at two Chinese rare earth factories in Xian and Beijing, which it has been investing in.

“If China participates in the joint production, we could reduce risks following the volatile relationship between the two Koreas,” said another KORES official in an interview.

“Because the government doesn’t currently allow our entry into the North, we can resume the talks when the South-North relations see some progress.”

Rare earth elements or rare earth metals are a group of 17 elements used in new technologies likes smartphones and hybrid cars. Despite their plentiful reserves, extracting them is difficult.

Rare earth is also found in the South but Seoul is largely dependent on imports from China, the world’s biggest producer of rare earth metals, due to the low economical efficiency and air pollution caused during the processing.

By Lee Ji-yoon (jylee@heraldcorp.com)