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Japan set to test mine rare-earth mud from deep seabed but China complications may arise
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Japan set to test mine rare-earth mud from deep seabed but China complications may arise

Key Takeaways (30s Read)

Japan is set to start test mining rare earth mud from the deep seabed, with environmental impacts in focus.

Japan is moving forward with plans to test mine rare earth-rich mud from the deep seabed off Minamitori Island. The testing will take place from January 11 to February 14, 2024, marking a world-first attempt to continuously lift rare-earth mud from a depth of about 6,000 meters. The goal is to extract 350 metric tons of rare-earth mud per day while monitoring the environmental impacts of the operation. While no production targets have been set, a successful test could lead to full-scale mining trials as early as February 2027. This initiative is part of Japan's strategy to diversify its rare earth supply chains. However, challenges remain in processing capabilities. Collaboration with Australia for the construction of the Lynas plant in Malaysia highlights this issue. Furthermore, China's potential discontent cannot be overlooked, especially as Japan aims to reduce Beijing's geopolitical leverage related to rare earths. Notably, a Chinese naval fleet was reported to have entered Japanese waters earlier this year during surveys, raising questions about regional tensions.
AI Analyst

AI Opinion

"Japan's attempt to mine rare earths from the deep seabed represents a strategically important move amidst rising global demand for these minerals. As geopolitical tensions regarding rare earth supply continue, Japan's push for diversification is critical. The partnership with Australia that facilitated the Lynas plant in Malaysia exemplifies how Japan is attempting to alleviate its dependence on Chinese resources. China's response to Japan's exploratory actions could be crucial, and the resulting geopolitical ramifications are likely to play a significant role in future developments. Traders and stakeholders should watch closely as these events unfold."
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Reviewed by: FX Market AI Editorial Team

AI Market Analysis Team

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