Commerce Minister Chen Deming announced that China's second batch of rare-earth export quotas would be issued later this year, the China Securities Journal reported Monday.

Chen did not reveal any further details about 2011's rare-earth export figures, but added that discussions were ongoing to decide how the 2010 quotas would be adjusted.

However, despite this announcement, experts are clear that tighter control on both rare-earth exportation and production is to be expected.

Industry analyst He Zaihua, with CIC Industry Research Center, noted that the government would move to further build up its strategic reserves of rare earth.

As such, authorities would carefully manage both exports but also domestic consumption. "If the tightening policy for the rare-earth industry continues, China would probably soon turn into a rare-earth importer," said He.

In December, the Ministry of Commerce set its first batch of 2011 rare-earth export quotas at 14,446 tons, down 11.4 percent on its 2010 equivalent. This was the second consecutive yearly drop after 2010's quotas were slashed by 30 percent.

The decision to lower rare-earth supplies, which are key to many high-tech products such as wind turbines, precision-guided weapons and hybrid car batteries, has sparked global concerns.

However, Wang Caifeng, who is heading up the creation of China's rare-earth association, told the Global Times that 2011 exports would cover domestic and international demand. He added that exports to Japan would likely be reduced, given the recent earthquake's impact on electronic producers and carmakers.

CIC's He said that the recent calamity in Japan might lower demand in the short-term but that in the long run, reconstruction would lead to a major upswing for rare-earth prices.