SAPPORO -- Five foreign-capitalized companies are conducting surveys or exploratory drilling to develop gold mines in at least 42 locations in Japan, the Mainichi Shimbun has learned.

All of these sites had been mined for gold in the past, and the foreign-backed firms say that they may be able to discover new veins of gold using the latest technology. On the other hand, there are concerns that there may be a lack of adequate environmental measures and sustainable development.

If a gold vein commercially viable enough to cover the costs of mining and treatment of wastewater containing toxic substances after the mine closes is discovered, it will be the first in Japan since the Hishikari Mine in Kagoshima Prefecture, which was discovered in 1981 and is still in operation, and the first such find by a foreign-funded enterprise.

The five companies running the projects are Canada's Japan Gold Corp., Irving Resources Inc. and BeMetals Corp., and Australia's Kin-Gin Exploration Pty. and Cipango Pty.

Japan Gold has 26 projects in Japan, Irving Resources and BeMetals have five each, and Kin-Gin Exploration has six. Cipango has not disclosed its number of projects.

Particular interest in Hokkaido and Kyushu region

Their projects are concentrated in Hokkaido and Kagoshima Prefecture and scattered throughout Niigata, Ishikawa, Fukuoka, Nagasaki, Kumamoto, Oita and Miyazaki prefectures. Japan Gold, Irving Resources and BeMetals have already started exploratory drilling. At least one of them has been prospecting for several years and conducted drilling surveys at about 50 locations in multiple project areas.

In the past, there were gold mines in various parts of Japan, such as the Sado Mine in Niigata Prefecture and the Konomai Mine in Hokkaido, but most have closed due to declining production and other reasons. Currently, only Sumitomo Metal Mining Co.'s Hishikari Mine is operating on a commercial scale. According to the Ministry of Economy, Trade and Industry, there are three other mines in Kagoshima Prefecture that mainly produce other minerals and very small amounts of gold.

Multiple firms explained that what triggered the start of their activities was the enforcement of the revised Mining Act in 2012, which clarified the requirements for acquiring mining rights. John Proust, CEO of Japan Gold, the earliest of the foreign corporations to establish a Japanese subsidiary that began operations in 2013, told the Mainichi that since only shallow areas at depths up to 50 to 100 meters have been mined in many cases in Japan, there is potential to find new veins in deeper areas. Proust added that his company is particularly interested in Hokkaido and the Kyushu region.

Under the current system, there are no restrictions on foreign-affiliated companies developing mines in Japan. The Mining Act limits the acquisition of rights necessary for prospecting and mining to Japanese nationals or Japanese corporations, so each of the firms has established a subsidiary in Japan to work on mining projects.

Foreign capital firms should 'fully understand the Japanese legal system'

However, if a gold vein is discovered, foreign-affiliated businesses may take the lead in its development. Yoshihide Shiga, mineral deposit studies professor emeritus at Kagoshima University, an expert on resource policy, predicts that "Japanese companies are strong in smelting (extracting gold from ore), so smelting will probably take place domestically." He added that the negative impact on domestic industry would be minimal, but added, "Foreign capital companies will continue to hold mining rights, and there is a possibility of aggressive development. It is important that they fully understand the Japanese legal system (which requires appropriate development and pollution control) before proceeding."

(Japanese original by Hiroyuki Katano and Haruka Ito, Hokkaido News Department)