A series of foreign companies are seeking treasure in Japan’s abandoned gold mines, particularly in Hokkaido.
Local friction has also emerged as some argue this is a chance to save depopulated areas while others are concerned that the hunt for precious metals will invite a crisis of environmental pollution.
AUSTRALIAN PROSPECTORS
In July 2023, a group from Australia arrived in Oshamanbe, Hokkaido, a town famous for its “kani-meshi” (crab and rice) “ekiben” bento sold at train stations.
Town Mayor Masashi Kihata, 77, welcomed the visitors at the town hall and asked, “Does it still hold some appeal?”
It does, said Greg Foulis, delegation member and senior executive of JapeX, the Japanese subsidiary of Australian mining company Kin-Gin Exploration.
The subject of the conversation was the former Shizukari Gold Mine, which was last active more than 60 years ago.
The company wanted to search for gold in the mine straddling Oshamanbe and neighboring Kuromatsunai town and applied to the central government for the right to conduct exploratory drilling.
Foulis and other officials had visited the mayor to explain this and their intentions.
They told the mayor that the company is confident that it will find plenty of gold if it can conduct some research, a belief hinging on modern technology revealing what prewar instruments could not.
A MINING TOWN’S DECLINE
Work at Shizukari Gold Mine began before World War II and ended with its closure in 1962 due to declining production.
The total amount of gold extracted over its 42 years of operation was approximately 6,242 kilograms.
Before the war, Shizukari was a bustling area with schools and recreational facilities for its approximately 7,000 residents that included Korean laborers. A newspaper of the time described Shizukari as “a town bursting with gold.”
At its peak, the area’s population exceeded 15,000. Today, about 4,700 live there.
Kihata finds the sales pitch from Australia promising and told The Asahi Shimbun, “The population continues to decline. I want companies to come here. If the local economy is moving, businesses will be created, and the population will increase.”
He said the exploratory drilling is “only to find out if there is gold left” in the closed mine.
“Many townspeople, too, want to know if gold can be extracted,” he said. “No one in the town is opposed to the project. There has never been any discussion in the town assembly, either.”
By February 2024, the central government had granted the company permission to begin exploratory drilling, subject to conditions such as considerations for the pollution of farmland, rivers and seawater.
‘TRANSVAAL OF THE EAST’
Similar exchanges have occurred in other parts of the prefecture.
Hokkaido was once famed for its gold deposits and known as the “Transvaal of the East,” in reference to a large gold-producing region in South Africa.
During the Edo Period (1603-1867), it was gold dust mined in the northern region that enriched the Matsumae clan’s finances. Before World War II, several gold mines were active.
To get a better picture of the state of interest, The Asahi Shimbun examined the status of applications in Hokkaido beginning in fiscal 2019 via a public information request.
Four foreign companies have obtained exploratory drilling rights. In addition to Australia’s JapeX are three Canadian entities—Japan Gold Corp., Irving Resources Japan GK and Kazan Resources.
The Mining Law requires that the applicant be a Japanese national, individual or corporation registered in Japan, and that the application not be contrary to the public welfare.
However, the Hokkaido Bureau of Economy, Trade and Industry under the economy ministry said, “We cannot refuse an application even if it is from a foreign company.”
Exploratory drilling will take place across a wide range of locations covering 13 municipalities—Oshamanbe, Kuromatsunai, Monbetsu, Kitami, Shibetsu, Saroma, Kamikawa, Oumu, Yubetsu, Aibetsu, Niki, Engaru and Akaigawa.
JapeX has applied for access to drill in six parts of the country.
A company representative declined to provide a detailed answer on the progress of these projects when asked, citing the importance of confidentiality. They did, however, share that the Shizukari area is the company’s highest priority and preparations are under way.
A RESOUNDING ‘NO’
An increasing number of overseas companies are launching ventures in exploratory drilling because they expect the price of gold to continue rising due to fears of global political and economic instability. The metal is considered a safe asset.
According to Tanaka Precious Metal Technologies Co., a major bullion trader, the average retail price per gram is more than triple its value from 10 years ago.
Unlike the Oshamanbe mayor’s enthusiasm, the town it shares the mine with is vehemently opposed. Kuromatsunai town said such an operation would lead to environmental destruction.
Its 92-hectare “buna” Japanese beech forest is a designated national natural monument as the country’s northernmost forest where the trees grow naturally.
Kuromatsunai’s forest was twice threatened by logging in the past following plans to source beech for Zero fighter plane propellers and later ones to use the wood to supplement municipal finances.
It was saved after residents petitioned for its preservation; the forest is, so to speak, a “symbol of the town.”
Currently, Kuromatsunai is not only committed to protecting nature, but also its manmade landscape. An ordinance regulates the color of walls and roofs as well as the height of cell phone communication antennas.
The municipality recently partnered with Patagonia Inc., a U.S. outdoor gear and clothing company, to protect the Shubutogawa River’s ecosystem that acts as a natural habitat for “ayu” sweetfish.
These environmental strategies have proven successful, as the number of tourists visiting the town reached 360,000 a year before the COVID-19 pandemic.
The town now has a population of about 2,400.
Junichi Sakurai, who heads the town’s planning and environment division, said, “In order for the town to survive amid a declining population, we now must make the natural environment we protected shine.”
STOP THE DRILLS
The town assembly of Kuromatsunai has created a petition to halt the exploratory drilling project and also passed a written request to the foreign investors.
The assembly’s move was supported by a prior petition from townspeople who, along with 637 signatures, demanded a stop to the drilling project.
Chie Morizuka, who runs Gladney Farm located on the proposed exploratory drill site, is one of those voices.
“If they find gold through exploratory drilling, they will surely move to mining,” she said. “There is a possibility that the underground water veins will be disturbed and the groundwater that grazing cattle drink will be contaminated.”
At an explanatory meeting held by one of the companies in July 2024, many questions were raised by residents in opposition, but the company did not respond.
Companies with legal approval for exploratory drilling are allowed to examine an area’s rocks and other underground materials for up to six years.
That said, they are not required to conduct environmental assessments.
Morizuka said, “We need a system that allows residents to participate in the preliminary stage before exploratory drilling rights are given.”
The Ichthyological Society of Japan also submitted a written request to the economy and environment ministries as well as the Hokkaido prefectural government on April 25 demanding that the project be halted.
The letter stated that the Shubutogawa River, which runs through the town, is “highly important from the viewpoint of biodiversity,” and that the exploratory drilling of the mine “may have a negative impact on the ecosystem as well as on human health.”
CHEAPENING OF RESOURCES
A similar tug of war is taking place in Monbetsu, Hokkaido.
Several foreign companies, including JapeX, have applied for and acquired exploratory drilling rights at the former Konomai Gold Mine in the city. Local residents have voiced their concerns.
Monbetsu’s city assembly passed a resolution opposing exploratory drilling and mining at the end of 2024, saying that “environmental pollution, especially of water, would seriously affect residents’ health and the ecosystem, as well as cause immeasurable damage to scallops and other marine products.”
Yasuhiro Yamanaka, a professor of environmental science at Hokkaido University, said the issue highlights the composition of “Hokkaido selling off local resources to foreign capital at a lower price.”
“It may be a quick-fix drug for the economies of depopulated areas,” Yamanaka said. “However, the effect will be temporary, and foreign capital will take most of the profits.”
On the other hand, if environmental damage such as water contamination occurs, it is the next generation that will pay the price, he said.
“It is necessary to take a proper look at the natural conditions of each site. Local politicians should listen more to the opinions of young people and have a long-term perspective,” Yamanaka said.
(This article was written by Osamu Hiura and Kentaro Uechi.)
AloJapan.com