According to the Mainichi Shimbun, five foreign-funded companies are conducting surveys or exploratory drilling at a minimum of 42 locations in Japan to develop gold mines.

These locations were previously mined for gold, and the companies claim that new gold veins may be discovered with advanced technology. However, concerns remain regarding whether adequate environmental measures and sustainable development practices will be implemented.

If a commercially viable gold vein is discovered that can cover the costs of mining and the treatment of toxic wastewater after the mine is closed, it will be the first such discovery in Japan since the Hishikari Mine in Kagoshima Prefecture, which was found in 1981 and is still operational. It will also mark the first such discovery by foreign-funded companies.

The five companies involved in these projects are Japan Gold Corp., Irving Resources Inc., and BeMetals Corp. from Canada, as well as Kin-Gin Exploration Pty. and Cipango Pty. from Australia.

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

Focus on Hokkaido and Kyushu Regions

These projects are primarily concentrated in Hokkaido and Kagoshima Prefecture, with additional sites in Niigata, Ishikawa, Fukuoka, Nagasaki, Kumamoto, Oita, and Miyazaki Prefectures. Japan Gold, Irving Resources, and BeMetals have already started exploratory drilling. At least one company has been engaged in exploration for several years and has conducted drilling surveys at approximately 50 locations across multiple project areas.

In the past, there were numerous gold mines across Japan, such as the Sado Mine in Niigata Prefecture and the Konomai Mine in Hokkaido. However, most ceased operations due to declining production and other factors. Currently, Sumitomo Metal Mining Co.’s Hishikari Mine is the only gold mine in Japan operating on a commercial scale. According to the Ministry of Economy, Trade and Industry (METI), three additional mines are operational in Kagoshima Prefecture.

Several companies stated that their exploration activities were spurred by the 2012 revision of the Mining Act, which clarified the requirements for acquiring mining rights. John Proust, CEO of Japan Gold and the first foreign company to establish a subsidiary in Japan in 2013, noted that most mining in Japan has been limited to shallow depths of 50 to 100 meters, leaving the potential for deeper, undiscovered veins. Proust also highlighted Hokkaido and Kyushu as areas of particular interest.

Under current regulations, foreign-funded companies face no restrictions on developing mines in Japan. The Mining Act limits the acquisition of rights for exploration and mining to Japanese nationals or corporations, which has led these companies to establish subsidiaries in Japan for project development.

Foreign Companies Must Fully Understand Japan’s Legal System

If viable gold veins are discovered, foreign-funded companies could lead their development. Yoshihide Shiga, an emeritus professor of mineral deposit studies at Kagoshima University and an expert on resource policy, stated that Japanese companies are strong in smelting, meaning the process of extracting gold from ore would likely be carried out domestically. He added that the negative impact on domestic industries would likely be minimal but warned, “Foreign companies will retain mining rights, and aggressive development could occur. It is crucial for these companies to fully understand Japan’s legal requirements, including those related to appropriate development and pollution control, before proceeding.”