It is reported that Japan plans to send a study group to Mongolia as it tries to diversify its supply sources.

Mr Hiromitsu Sugawara deputy director at the ministry's Northeast Asia division said that the Ministry of Economy, Trade and Industry will send a group in mid October 2010 to study rare earth deposits with Mongolia's government. The two countries have also agreed to expedite talks for an economic partnership agreement and to develop coal and uranium projects.

Mr Sugawara said that METI will form a delegation from Japan Oil, Gas & Metals National Corporation, which manages and explores Japan's strategic resources, and the National Institute of Advanced Industrial Science & Technology.

According to data from the trade ministry, Japan depends on China for 90%t of its rare earth supplies. The minerals are used in radar, high powered magnets, laptop computer hard drives, auto catalytic converters, electric car batteries and wind turbines.

(Sourced from www.japantimes.co.jp)