China's decision to reduce its export quota of rare earths boosted Lynas Corp's prospect in the international market for the priced minerals and pushed up the emerging producer's shares value in Australian market by at least 13 percent.

Lynas executive chair Nicholas Curtis said that the Chinese move opens a window of opportunity for the Sydney-based rare earths producer as he offered that declining rare earths production in China and continued growth of the Chinese market may have contributed to the regulatory decision.

Possible rises on its export outlook bolstered investors confidence on the Australian rare earth producer as Curtis stressed on his statement issued on Wednesday that "this provides additional opportunity for Lynas to meet the supply deficit outside of China."

His statement further revealed that "Lynas owns the richest known deposit of rare earths outside of China at Mount Weld in Western Australia and the company is progressing well to be in a position to commence production in the third quarter of 2011."

Beijing initially announced a 72 percent reduction on its rare earths export quota in the last half of 2010 and followed it up with another 35 percent cut set to be implemented on the first half of 2011.

Global firms scored the move as a veiled ploy to highlight China's dominance of the rare earths market and either instigate an increase in the minerals prices or compel affected technological firms to consider relocating their manufacturing activities in the country, now currently occupying the post of the world's second largest economy.

Tech companies rely on rare earth minerals for the global production of their export offerings such as batteries, LCD televisions, mobile phones and even military gadgets.

Also, Lynas is under the impression that China is liberally using its market advantage, which now supplies up to 90 percent of global rare earths requirements, to cap the export of the prized materials and limit its availability.

Analysts said that poised to bear the brunt of China's decision are Japanese firms and aerospace industries which utilise rare earths for most of their cutting-edge products.

The United States raised its concerns regarding the materials export limitations in behalf of US firms Boeing and Lockheed, which largely use rare earths for their aircrafts' guidance systems.

However, China stressed that the export quotas are regulatory reactions of its government to implement safeguards against environmental degradation attached with the rare earths mining industry as it added that the move was made in accordance with sustainable development considerations.

Beijing further reasoned that export quotas for the last half of 2011 could possibly see some spikes and thereby equal China's shipment in 2010.