A bastnaesite mineral containing rare earth from the United States, is pictured next to cell phones, which utilises the minerals during manufacturing at a laboratory of Yasuhiro Kato, an associate professor of earth science at the University of Tokyo, in
IN PHOTO: A bastnaesite mineral containing rare earth from the United States, is pictured next to cell phones, which utilises the minerals during manufacturing at a laboratory of Yasuhiro Kato, an associate professor of earth science at the University of Tokyo, in this photo illustration taken July 5, 2011. Vast deposits of rare earth minerals, crucial in making high-tech electronics products, have been found on the floor of the Pacific Ocean and can be readily extracted, Japanese scientists said on Monday. REUTERS/Yuriko Nakao Reuters/Yuriko Nakao

China has lifted its self-imposed controls on the exports of its rare earths metals after it lost to a case initiated by a complaint lodged by Washington and other trading partners before the World Trade Organisation.

A report by the AP said China's Ministry of Commerce recently issued a new set of guidelines for 2015 which stated that "rare earths will require an export license but the amount that can be sold abroad will no longer be covered by a quota." China, which supplies over 90 percent of the world's demand for rare earths, imposed its export curbs on the precious metals in 2009.

However, China will continue to impose the export licensing system in a bid to limit export of these rare metals. "To export rare earths, enterprises shall apply to the designated issuing agency for export licenses and make export declaration at the specified port, which aims to maintain the normal order of operation," MOFCOM said.

Controlling only 30 percent of the world's deposits of rare earths, China said then it wants to control exporting the material for environmental concerns. It also said it wants to conserve the already dwindling resource. However, it was soon revealed the production and use of rare earths by companies within China continued despite the exports ban.

Experts believed the exports restrictions of Chinese-produced rare earths, a group of 17 minerals used to make goods, including hybrid cars, weapons, flat-screen TVs, mobile phones, mercury-vapour lights and camera lenses, were made to control the profits that go outside of the country and end in western and Japanese producers of mobile phone batteries and other products. China also has its own mobile phone makers.

In 2011, prices of rare earths in the global market shot up because of fears of shortage. Prices have dropped and stabilised but continue to hover above 2010 levels. An example would be the price of dysprosium oxide which currently costs $265 per kilogramme ($120.50 per pound). It sold at $166.48 per kilogramme ($75.67 per pound) at 2010 levels.

AP said China,in 2013, exported a total of 22,493 tonnes of rare earths, and 22,224 tonnes in the first ten months of 2014, citing customs data reported by state media.