Japanese trading house Sojitz Corp said it has formed a tie-up with Australian mining company Lynas Corp on the supply of rare earth metals, and would announce details of the agreement later on Wednesday.
Sojitz has agreed to pay about $US300 million for the right to buy about 8,500 tonnes of rare earth metals annually from Lynas for 10 years, Japanese public broadcaster NHK reported on its website.
That amount is equal to nearly 30 per cent of annual demand in Japan, NHK said.
Lynas shares were flat in early trading, losing half a cent to $1.38. The stock is the second-best performing among the ASX200 this year, rising about 150 per cent.
