China’s exports of rare earths accounted for 90 percent of the global supply until last year, however it has drastically reduced its export quota of rare earths from 50,000 tons annually to just 8,000 tons this year.

These materials, which include granites and syenites rich in rare metals such as Yttrium, Tantalum, Niobium, Thorium and Zirconium are used in numerous hi-tech applications in everything from weapons systems to computers, mobile phones and flat screen televisions.

Mongolia is rapidly developing a number of joint venture projects with foreign investors keen to ensure alternative supplies. These include businesses such as the San Jose-based Green Technology Solutions (GTSO) who have recently announced a partnership with Mongolia’s Rare Earth Exporters.

The first exports of the JV’s products are booked for South Korea. Detailed logistics for the shipment are currently being scrutinized thoroughly. GTSO management believes that establishing a new reliable source and route to supply U.S. economic and military allies with rare earth supplies is a matter of American national security as well as an opportunity to enhance the shareholders’ value.

The products will be transported east via rail to Vladivostok, and shipped to South Korea from there. That will have a significant impact on the development and strategic importance of the city as an international export hub from East Asia, providing both an alternative to routing through China and an over reliance on Chinese supplies.

Vladivostok is the capital city of the Primorsky Krai region in Russia’s Far East. It is situated at the head of the Golden Horn Bay, not far from Russia’s border with China and North Korea, and is the home port of the Russian Pacific Fleet. The population of the city, according to the preliminary results of the 2010 Census, is 592,100 – compared to Shanghai, which is just over 23 million for the municipality.

Vladivostok is connected by rail to Northeast China, and specifically the massive intersection at Harbin, which then links into China’s main rail network. The trans-Siberian route also offers access to Central Asia, Russia and Europe, while scheduled flights operate to Harbin, Shanghai, Niigata, Toyama, Seoul, Pusan, Pyongyang, Anchorage and many Russian cities including Moscow.

A view of Vladivostok