JAPAN: Australian Prime Minister Julia Gillard guarantees a secure provision of energy and natural resources to Japan

Record ID: 465057

  • Title: JAPAN: Australian Prime Minister Julia Gillard guarantees a secure provision of energy and natural resources to Japan
  • Date: 22nd April 2011
  • Summary: TOKYO, JAPAN (2011) (REUTERS) ( ** BEWARE FLASH PHOTOGRAPHY **) PEOPLE WALKING IN FRONT OF JAPANESE IMPERIAL PALACE EXTERIOR OF IMPERIAL PALACE BUILDING MAN SEATED UNDER CHERRY BLOSSOM TREE AUSTRALIAN PRIME MINISTER JULIA GILLARD WALKING UP ONTO PODIUM MAN LISTENING TO GILLARD (SOUNDBITE) (English) AUSTRALIAN PRIME MINISTER JULIA GILLARD SAYING: "In overall terms Australia is the largest single supplier of primary energy to Japan, which has helped Japan become a major exporter of industrial goods. Over the next few years Australia will become Japan's most important supplier of liquefied natural gas, as we are already with coal and iron ore. Japan can rely on Australia at a time when you have never needed these resources more." GILLARD GIVING SPEECH (SOUNDBITE) (English) AUSTRALIAN PRIME MINISTER JULIA GILLARD SAYING: "We will also be a secure and reliable supplier to Japan of rare earth metals which is so important for advanced manufacturing." MORE OF GILLARD GIVING SPEECH PHOTOGRAPHER (SOUNDBITE) (English) AUSTRALIAN PRIME MINISTER JULIA GILLARD SAYING: "Japan will rebuild and Australia will help as a friend. We have great admiration for Japan's people and great confidence in Japan's future." AUDIENCE CLAPPING AND GILLARD WALKING OFF STAGE VARIOUS OF GILLARD TALKING WITH JAPANESE BUSINESS LEADERS
  • Embargoed: 7th May 2011 13:00
  • Keywords:
  • Location: Japan, Japan
  • Country: Japan
  • Topics: International Relations,Energy
  • Reuters ID: LVA1XQ8EMNU4GHJFLYYRNFUZPZP
  • Story Text: Australian Prime Minister Julia Gillard on Thursday (April 21) guaranteed a secure provision of energy and natural resources to Japan, amid raising fears of supply disruptions due to unrest in the Middle East and the disasters in northern Japan.
    Gillard, who arrived in Tokyo on Wednesday (April 20) on the first leg of her East Asia tour, gave her assurances to Japanese business leaders in a luncheon speech.
    "In overall terms Australia is the largest single supplier of primary energy to Japan, which has helped Japan become a major exporter of industrial goods. Over the next few years Australia will become Japan's most important supplier of liquefied natural gas, as we are already with coal and iron ore. Japan can rely on Australia at a time when you have never needed these resources more," Gillard told members of the Japan Chamber of Commerce and Industry.
    Japan is keen to secure its energy sources, especially liquefied natural gas (LNG), to compensate for reduced power due to its crippled Fukushima Daiichi nuclear power plant, damaged by the massive earthquake and tsunami on March 11.
    Operator of the Daiichi plant, Tokyo Electric Power Co (TEPCO) has already ramped up LNG consumption, buying a record volume in March.
    Japan is also faced with a massive reconstruction programme which will take years and require secure energy. Analysts say Japan's long-term energy demand will further drive Australia's current massive A$200 billion LNG capacity build up.
    Troubles in the Middle East, Japan's major oil supplier, will also see Tokyo keen to secure alternative energy from Australia, which supplies one quarter of Japan's non-oil energy, said Professor Peter Drysdale at the Australian National University Collage of Asia and Pacific.
    The Australian premier also guaranteed secure supply of rare earth metals.
    "We will also be a secure and reliable supplier to Japan of rare earth metals which is so important for advanced manufacturing," said Gillard.
    The metals used for making high-tech products and auto parts were used by China as leverage in a political dispute with Tokyo last year, with Beijing restricting exports and alarming Japan's top manufacturing firms.
    Japan has stepped up its diversification of supply sources while the government said Japan aims to cut rare earth consumption by a third within a few years and reduce its reliance on China by providing subsidies for recycling and investing in new ways to limit their use.
    Gillard also pledged Australia's support to the country.
    "Japan will rebuild and Australia will help as a friend. We have great admiration for Japan's people and great confidence in Japan's future," Gillard said.
    Gillard, on her four-day visit to Japan, was scheduled to hold a meeting with Japanese Prime Minister Naoto Kan on Thursday and to visit disaster-hit northern Japan on Saturday (April 23).
    Gillard will visit Seoul from April 23 to 25, where free trade talks are most advanced, but experts say the FTA negotiations are not close enough to expect a major announcement.
    Climate policy and human rights are likely to be key issues along with trade during her visit to Beijing from April 25 to 27.
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