China resumed exports to Japan of rare earth minerals crucial in high-tech manufacturing after a two-month de facto ban and a Japanese conglomerate announced a major supply deal with an Australian miner that will reduce dependence on Chinese production.
China controls 97 percent of the global output of rare earths, needed to produce everything from cellphones to hybrid cars.
Japan was given a jolt in September when Beijing imposed a de facto ban after a diplomatic spat and Tokyo immediately began seeking new trading partners.
News of the resumption came yesterday as Sojitz Corp, a large Japanese conglomerate, announced a major tie-up with Australian mining company Lynas Corp to secure supply for the next decade.
“Efforts that aim to diversify the regions and countries from where we import rare earths are intensifying and I want to increase my efforts even more in this area to demonstrate solid, steady progress,” Japanese Trade and Industry Minister Akihiro Ohata said.
A trade ministry official said the deal would satisfy more than 30 percent of Japanese demand if it went ahead.
China has denied a ban, but Japanese firms say exports have been halted by a sudden increase in government inspections and paperwork. Tokyo’s efforts to find alternative supply have included talks with other Asian countries such as Vietnam and Mongolia.
Japanese officials said that two ships bearing the minerals had left Chinese ports bound for Japan, signaling that exports had restarted.
In Australia, Sojitz and Lynas have agreed to a deal in which the Japanese conglomerate would get exclusive import rights for more than 70 percent of the 22,000-tonne capacity at a rare earth mine operated by Lynas, the companies said in a joint press release.
Sojitz has agreed to seek up to US$250 million in funding the state-backed Japan Oil, Gas and Metals National Corp for the project. to develop the project, which is to begin initial operation next year and hit full capacity in 2012.
Japan’s diplomatic row with China began in September, when its coast guard arrested a Chinese fishing boat captain after his ship collided with patrol boats near disputed islands in the East China Sea. Beijing cut off ministerial-level contacts with Japan, repeatedly summoned Tokyo’s ambassador to complain and postponed talks on the joint development of undersea natural gas fields.
ADDITIONAL REPORTING BY AFP
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