Posted July. 23, 2012 08:49,
Updated January. 01, 1970 09:00
South Korea held two rounds of secret talks with North Korea at an inter-Korean industrial complex in Kaesong at Pyongyang`s request late last year on joint development of rare earth metals in the North.
Called the vitamins of high-tech industries, rare earth metals are minerals necessary for making smartphones, notebook computers and hybrid vehicles.
The Norths proposal to hold the meetings was made after the South stopped almost all inter-Korean economic cooperation in May 2010, soon after a South Korean naval vessel was sunk by a North Korean torpedo. Whether this will lead to the resumption of inter-Korean economic cooperation remains to be seen.
The Korea Resources Corp., a South Korean state-run resources developer, said Sunday that it held working-level talks with officials of the Norths National Economic Cooperation Federation at the Kaesong Industrial Complex in September and December last year.
In the second contact, the federation handed over four rare earth samples to the South Korean side. An analysis showed that the samples were a type of rare earth metals used to manufacture LCD panels and optical lenses.
A South Korean official who participated in the talks said, The North strongly proposed that the two Koreas jointly develop coal mines as well as rare earth metals.
The resources corporation tried to brief North Korea on the results of the sample analysis. No further talks have been held since, however, due to changes in Pyongyangs political situation following the death of leader Kim Jong Il on Dec. 17 last year.
Still, the corporation said it maintains a hotline with its North Korean counterpart and plans to develop resources in the North. CEO Kim Shin-jong briefed South Korean President Lee Myung-bak on the results of the sample analysis in February. He said, The president encouraged us to carry on after we reported that North Korean rare earth metals are economically promising.
The South Korean resources development industry estimates that North Korea has 42 types of minerals, including rare earth metals at nearly 700 mines under development. Their value is estimated at nearly 6,984 trillion won (6,133 billion U.S. dollars). In particular, the industry says that while China has made rare earth metals a strategic resource, the North has up to 20 million tons of rare earth deposits. Chinas rare deposits are estimated at 55 million tons, accounting for about half of the worlds total.
A South Korean official involved in economic projects in the North said, We cannot rule out the possibility that inter-Korean economic cooperation projects will be resumed, as (the North`s No. 2 man) Jang Sung Taek and (military bigwig) Choe Ryong Hae, who are known as pragmatists, have rapidly emerged as powerful men, adding, Resource development is what the North needs the most and the South can approach this without political burden.