Reuters reported that Japan is looking to Australia for stable supplies of rare earths after China temporarily banned exports to its neighbor after a territorial row.

China produces 97% of the world's rare earth metals used in high tech electronics, magnets and batteries. Last year, it heavily cut export quotas including a de facto ban on shipments to Japan and is raising taxes on overseas sales.

Mr Banri Kaieda trade minister of Japanese made it clear after talks with his Australian counterpart in Sydney that he wanted Australia to become a reliable, long-term alternative supplier. From my side, I have requested stable supplies of rare earths. Our reputation as a stable and reliable supplier of minerals extends to rare earths.

China denies claims that it cut rare earths exports to Japan because of a spat that erupted in September over disputed islands in the East China Sea. Instead, Beijing says it needs to conserve more of its production to meet booming domestic demand.

Exports to Japan were effectively suspended between late September and late November but they rebounded in December. The brief de-facto ban left Tokyo intent of securing other supplies.

According to the US Geological Survey, Australia has an estimated 1.6 million tonnes of rare earths reserves but the industry is still largely in the exploration phase. China has half the world's known reserves with 55 million tonnes followed by the former Soviet Union with 19 million tonnes and the United States with 13 million tonnes.

(Sourced from Reuters)