Business details
Fluorite export and mineral resource development
Bringing Mongolian fluorite to Japan
Mongolia is the world’s third largest producer of fluorite after China and Mexico, and boasts the world’s fourth largest reserves after Mexico, China, and South Africa. Since 2018, the Mongolian government has positioned fluorite as an industry to support the sustainable development of the country, and is implementing a plan to promote the production and export of fluorite. The deciding factor behind Wayo’s decision to acquire the Delgerkhaan mine was its track record of mining from the days of the Soviet Union. A request was made to a German mining company in 2022 for a survey and exploratory excavation, which were subsequently completed successfully and resulted in the identification of ample deposits of extremely good quality fluorite. The day when we will be able to bring fluorite from Mongolia’s Berkh Delgerkhaan mine is fast approaching.
What type of mineral is fluorite?
Fluorite has long been a solvent used in metal refining, a raw material for different fluorine compounds, and an indispensable material for manufacturing and processing glass. In addition, it is an essential elemental material in areas including electronic devices such as PCs and smartphones, and semiconductor manufacturing. Over recent years it has come to be used in a range of industries, including the manufacture of lithium ion batteries for electric vehicles, making it an important mineral resource that is in the spotlight around the world.
Example uses
- • Smelting of steel and aluminum, manufacturing and processing of glass etc.
- • Base material for hydrofluoric acid (a fundamental substance in the chemical industry), manufacturing of plastic and other organic chemical products
- • Refrigerant for refrigerators and air conditioners, manufacturing of foaming agents such as urethane
- • Manufacturing of LAN cables, optical cables, mobile phone antenna leads, and other electronic components
- • Manufacturing of fundamental electronic components such as semiconductors and lithium-ion batteries
- • Manufacturing of chemical products such as pharmaceuticals and agrochemicals
Wayo’s strengths
Quality resources
Fluorite is a natural mineral, and Mongolia boasts the world’s third largest share of the market after China and Mexico. Its main component is calcium fluoride (CaF2), which is a base material for hydrogen fluoride - an essential substance in the chemical industry. Fluorite can broadly be divided into the two categories of “acid grade”, which has a purity of 97% or higher, and “metallurgical grade”, which has a purity below 97%, and it is the former that is required in order to make hydrogen fluoride. The Delgerkhaan mine that is owned by WAYO-FLUORITE LLC has abundant reserves of high-quality acid grade fluorite, and plans to expand its export destinations beyond Japan to the rest of the world.
Stable supplies through our own routes
Deep beneath its expansive lands, Mongolia boasts a wealth of mineral resources. Wayo Co., Ltd. Chairman and Representative Director Junichi Hattori became engaged in the business of mine development in Mongolia in the belief that importing resources from its friend Mongolia is important for resource-poor Japan. The greatest weakness in resource development in Mongolia lies in the fact that the country is landlocked and is unable to directly export overseas. The Wayo Group will overcome this weakness by opening up its own routes on the basis of geopolitical considerations, enabling a stable supply of quality fluorite that is unaffected by changes in global circumstances.
Mine redevelopment revitalizes the host town
Berkh, the town that hosts the Delgerkhaan mine, developed along with the mine and is said to have been home to 10,000 residents at its peak. But with the collapse of the Soviet Union and the mine’s closure, it declined to the point where it faced an existential crisis. But upon the redevelopment of the mine, Wayo Co., Ltd. and group companies have started work on putting in place a dormitory for Mongolian employees, a hotel, restaurants, and other such facilities. The governor of Khentii Province, where the town of Berkh is located, has great expectations of this project, and stated his intention to develop the town through the mine and tourism.
Creation of long-awaited employment
The Delgerkhaan mine was once the foundation of the prosperity of Berkh town, but the Soviet company that owned it withdrew before the collapse of the Soviet Union. The closure of the mine led to the loss of many jobs and the vitality of the town, and it began to depopulate. Given this history, the people of the town are very much looking forward to the redevelopment of the mine after 30 years. Working together with the Mongolian people, who, given Mongolia’s long history as a socialist country, do not count among their specialist skills linking precious resources to business, we shall put the mine on the track to redevelopment and create jobs. We believe it is our mission to see this project through until the town is fully back on its feet by providing workers with fair compensation.
