(Purpose) Article 1. The purpose of this Law shall be to increase the production of nickel by taking provisional measures for promotion of nickel refining industry, and thereby contribute to the sound development of the national economy.

(Designation of Refiner) Article 2. A person who engages in an industry of refining nickel by treating ores (hereinafter simply referred to as "the business" ) shall, when he intends to be granted an aid under the provisions of this Law shall obtain the designation of the Minister of International Trade and Industry. 2 A person who intends to obtain the designation under the preceding paragraph shall submit, within three (3) months after the date of the enforcement of this Law, an application to the Minister of International Trade and Industry together with the business program stating the following matters: (1) Outline of equipments for the business; (2) Construction plan of equipments for the business and expected date of its completion; (3) Amount of fund required for the business and means of raising the fund; (4) Scheduled amount of production for the period of three years after the commencement of the business; (5) Estimated cost of production for the period of three years after the commencement of the business; (6) Expected date of commencement of the business; (7) Program for obtainment of ores. 3 The Minister of International Trade and Industry shall, upon receipt of the application under the provision of the preceding paragraph, make designation when he has recognized that the application conforms to the following standards: (1) The commencement of the said business does not bring about the extremely excessive supply of nickel as compared with the demand; (2) The amount of expense required for the construction of the equipments necessary for the said business does not exceed the amount of money which is specified by Ministry of International Trade and Industry Ordinance; (3) The cost required for the production in the said business does not exceed the amount of money which is specified by Ministry of International Trade and Industry Ordinance; (4) The expected date of the commencement of the business is within one year from the date of the enforcement of this Law; (5) A person who has made the said application is a juridical person in possession of sufficient ability to carry out the business precisely.

Article 3. In the case of amalgamation pertaining to the juridical person who has obtained the designation under the preceding Article paragraph 1 (hereinafter referred to as "the designated refiner" ), the juridical person which continues to exist after amalgamation or has been established due to amalgamation shall succeed to the status of the designated refiner. 2 The person who has succeeded to the status of the designated refiner in accordance with the provision of the preceding paragraph shall make a report without delay to that effect, attaching the documents certifying the fact, to the Minister of International Trade and Industry.

Article 4. When the designated refiner intends to change the matters as mentioned in Article 2 paragraph 2 items (1) to (4) inclusive or item (6), he shall obtain the approval of the Minister of International Trade and Industry. In this case, the provisions of Article 2 paragraph 3 shall apply mutatis mutandis thereto. 2 The designated refiner shall, when he has started or completed the construction of facilities for the business, or when he has started or discontinued the business, report to that effect without delay to the Minister of International Trade and Industry.

(Cancellation and Invalidation of Designation) Article 5. The Minister of International Trade and industry may, when the designated refiner has violated any of the provisions of paragraph 1 of the preceding Article, the following Article, or Article 7 paragraph 1, cancel the designation. 2 The Minister of International Trade and Industry shall, when the amount which the designated refiner has accumulated in accordance with the provisions of Article 7 paragraph 1 has reached the amount equal to the total of the amounts as referred to in each item of the same paragraph or when he has discontinued the business, cancel the designation. 3 The designation under Article 2 paragraph 1 shall lose its validity after the lapse of four (4) years from the date of the enforcement of this Law.

(Selling Price) Article 6. The designated refiner shall not sell the nickel produced by him at a price exceeding the price provided for by Cabinet Order.

(Special Reserve Fund) Article 7. The designated refiner shall, when he has sold nickel produced by him, accumulate the amount of money per ton of nickel sold which is specified by Cabinet Order, as a special reserve fund, until it reaches the sum total of the amounts mentioned in the following items (hereinafter referred to as "the specified reserve amount" ): (1) The amount equivalent to 90/100 of the sum required for the construction of the equipments, as referred to in the business program, which come under the category of the refining equipments stipulated by Ministry of International Trade and Industry Ordinance; (2) The amount equivalent to 50/100 of the sum required for the construction of the equipments, as referred to in the business program, which come under the category of the incidental equipments stipulated by Ministry of International Trade and Industry Ordinance; (3) The amount equal to the product of the estimated purchase price of nickel ore designated by the Minister of International Trade and Industry multiplied by the quantity of the nickel ore necessary to be held for continuous operation of the business. 2 The quantity of nickel ore under item (3) of the preceding paragraph shall be designated by the Minister of International Trade and Industry in consideration of the prospect for the importation of nickel ore and supply and demand condition of nickel. 3 The designated refiner shall, upon completion of the construction of the equipments for the business, submit an application without delay to the Minister of International Trade and Industry together with the details of the amount expended for the construction of the equipments and receive the recognition of the amount of the expenses prescribed in paragraph 1 items (1) and (2).

(Compensation) Article 8. The State shall, when the designated refiner, owing to such reasons as prospect of ensured importation of nickel it abundant quantity at low price, sudden rise in the price of nickel ore to be obtained, prospect of suspension for a long time of nickel ore importation and occurrence of other similar events, is compelled to discontinue his business within four (4) years from the date of the enforcement of this Law and the amount of the special reserve fund under paragraph 1 of the preceding Article at the time of discontinuance of business (hereinafter referred to as "the time of discontinuance" ) does not reach the total of the amounts mentioned in the following items, grant him a compensation for the amount equal to the difference within the limit of the amount decided by the budget: (1) The remainder (in case the amount exceeds the amount of the expenditures on equipments as provided for in paragraph 1 item (1) or (2) of the preceding Article, the latter) of the expenditures on the equipments in possession of the designated refiner at the time of discontinuance and which are provided for in paragraph 1 item (1) or (2) of the preceding Article minus the amount to be obtained by the disposal of the equipments; (2) The remainder (in case the amount exceeds the amount provided for in paragraph 1 item (3) of the preceding Article the latter) of the expenditure in obtaining nickel ore in possession of the designated refiner at the time of discontinuance minus the amount to be obtained by the disposal of the ore. 2 The compensation under the provisions of the preceding paragraph shall not, when there are two or more designated refiners, be granted until all of the designated refiners have discontinued their business;provided that the same shall not apply after the lapse of four (4) years from the date of the enforcement of this Law. 3 In case there are two or more recipients of the compensation under the provisions of paragraph 1 if the amount of the grants exceeds the amount provided for by the budget, the grant for each person shall be made by prorating the amount of the budget in proportion to the amounts of compensation to be granted in accordance with the provisions of the same paragraph.

(Exception to Taxation on Compensation) Article 9. In case the person who was a designated refiner has received a grant of compensation under the provisions of the preceding Article and has made a deduction on the book value on the equipments and nickel ore for his business in the amount equal to the compensation (in case there has been a partial deduction or transfer of the equipments and nickel ore for the said business in the business year previous to the business year in which the compensation has been granted and after the time of discontinuance the amount equal to the amount of the compensation minus either the amount of the said deduction or the amount of the book value of the transferred assets immediately before the said transfer), the amount deducted shall be reckoned as a business expense in the computation of income under the provision of the Corporation Tax Law (Law No.28 of 1947). 2 The provision of the preceding paragraph shall not apply in case a request for reckoning of business expense on the book value from which the deduction has been made in accordance with the provision of the preceding paragraph is not mentioned in the applications under Article 18 to Article 21 inclusive of the Corporation Tax Law.

(Report and On-the-spot Inspection) Article 10. The Minister of International Trade and Industry may, within the limit deemed necessary for the enforcement of this Law, collect reports from the designated refiner on the special reserve fund under Article 7 paragraph 1, cost of production of nickel and other necessary matters. In this case, the Minister of International Trade and Industry may, when the designated refiner does not make the reports or it is recognized that the report is false, cause his personnel to enter the office, business place, plant or warehouse and inspect books, documents and other articles. 2 The personnel who make the on-the-spot inspection in accordance with the provision of the preceding paragraph shall carry with them a certificate showing their status and present the same to the persons concerned. 3 The authority of the on-the-spot inspection under the provision of paragraph 1 shall not be interpreted as having been recognized as a criminal investigation.

(Hearing) Article 11. The Minister of International Trade and Industry shall, when he intends to cancel the designation under the provision of Article 5 paragraph 1, hold a hearing open to public by serving an advance notice with proper time allowance on the designated refiner in question. 2 In the advance notice under the preceding paragraph, the date, place of the hearing and the substance of the case shall be mentioned. 3 At the hearing opportunities shall be given to the designated refiner and persons having interests to present evidences on the case and to state their opinions.

(Protesting) Article 12. Any person who is dissatisfied with the disposition made by the Minister of International Trade and Industry under the provisions of this Law or order issued thereunder, may lodge a protest with the Minister of International Trade and Industry stating therein to that effect.

(Decision) Article 13. When a protest under the preceding Article has been filed, the Minister of International Trade and Industry shall, after the public hearings as prescribed in Article 11, make a decision on the case in writing and serve a copy thereof on the person who has lodged the protest.

(Penal Provisions) Article 14. In case there has been any case of non-compliance to the report under the provision of Article 10 paragraph 1, making of false report or refusal, obstruction or evasion of on-the-spot inspection under the provision of the same paragraph, the representative, agent or employee, who has committed the act, of the designated refiner shall be punished with a fine not exceeding 30,000 yen. 2 When a representative, agent or employee of the designated refiner has committed a violation under the preceding paragraph relative to the business of the said refiner, the fine under the same paragraph shall be imposed upon the designated refiner besides the punishment of the violator;provided that this shall not apply to the designated refiner when there has been proved that he has taken proper care and supervision relative to the said business, on his agent or employee to prevent the said violation.