New WA-Japan agreement signed

Colin Barnett
Premier, State Development

On 17th November, the Western Australian Government signed a memorandum of understanding (MOU) with the Japan Bank for International Cooperation (JBIC) – the international wing of the Japan Finance Corporation, which is wholly owned by the Japanese government. Premier and State Development Minister Colin Barnett said the MOU would strengthen the support JBIC would be able to provide to Japanese companies looking to do business in WA, particularly in the minerals, energy and other natural resource sectors.

“The MOU marks the first time JBIC will have concluded such an agreement with a State, indicating the importance Japan places on its relationship with WA,” Mr. Barnett said. “The agreement will allow the State Government, through the Department of State Development, and JBIC to exchange information on potential investments at periodic meetings. It is expected this closer relationship will reinforce JBIC’s support for Japanese companies’ investment activities in WA.”

“We have already seen evidence of this in the liquefied and natural gas (LNG) and iron ore sectors, two key areas of interest.” Japan relies upon WA for 60 per cent of its iron ore imports and 20 per cent of its LNG imports.

The Premier said JBIC had quoted WA’s proximity to Japan, its abundant resources and lack of sovereign risk as key factors for developing such a memorandum with the State. With the change required in Japan’s energy mix due to the tragedy caused by the earthquake and tsunami of March 11, greater demand for LNG was highly expected.  JBIC would seek to play a key role in Japanese interest in this sector.