US investment to boost critical minerals projects in Western Australia
Although it is unclear how much the refinery will cost, Albanese said it could produce 10 percent of the world’s gallium supply. Alcoa and Sojitz will make the final investment decision next year.
But WA Greens environment spokesperson Jess Beckerling said she was concerned the gallium refinery could be used to block a massive expansion of mining in the state’s jarrah forests.
“Alcoa’s gallium development project and proposals to expand forest mining and all associated environmental and climate impacts must be independently assessed; the risk to our drinking water, the South West’s unique jarrah forests and the endangered wildlife that call them home is so significant,” he said.
“The Labor Party wants us to believe that a critical mining deal with the US will put us on the path to a clean energy transition, when the reality is that Alcoa’s expansion of forest mining will take us further in the wrong direction.
“Alcoa’s expansion plans, currently under evaluation, risk contaminating our drinking water and will release more than 1.3 billion tonnes of wastewater. [greenhouse gas] emissions over the life of the project.”
The US and Australia have agreed to spend nearly $3 billion together on critical mineral projects over the next six months.
The U.S. Export-Import Bank sent letters of interest to seven companies, alerting them to its intention to offer financing worth approximately $2.2 billion to implement their projects.
One of these companies was Northern Minerals, whose Browns Range heavy rare earth project in the East Kimberley could be funded by US$230 million (AUD$352 million) from the US state bank, which usually only helps finance ventures from US companies.
Northern Minerals will also tap its Australian counterpart, Export Finance Australia, for further financing.
Northern Minerals executive chairman Adam Handley said a feasibility study completed this month confirmed the Browns Range was a globally significant resource and one of the most advanced heavy rare earth projects outside China.
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“Our focus, supported by these Letters from EFA and EXIM, is to secure the right financing solution to enable a Final Investment Decision to be made and construction to begin at Browns Range, in line with Northern Minerals’ vision to deliver long-term, sustainable value to our shareholders,” he said.
Rare earths are a set of chemically similar elements that are vital for advanced production, but China controls a large share of the global market.
A US-Australia critical mineral supply security response group will also be established to identify supply chain issues and vulnerabilities. It will be chaired by the Australian Minister of Resources and the US Minister of Energy.
WA Chamber of Minerals and Energy policy and advocacy director Anita Logiudice said the critical minerals deal was a game changer that would spark efforts to develop the state’s considerable reserves.
“WA is already the world’s fourth largest producer of rare earths and we have half of Australia’s known critical mineral reserves, which are among the largest on the planet,” he said.
“WA is also a stable and reliable trading partner with the skilled workforce and expertise needed to develop new resource projects quickly and safely.”
On the way to AUKUS
Cook was also excited Stepping up Trump’s support for the AUKUS submarine deal.
“AUKUS is a big deal for Western Australia. It will create 10,000 jobs in Henderson and become the largest marine maintenance and shipbuilding center in the southern hemisphere,” he said.
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“What President Trump’s comments throughout the night represent is a clear indication that the Trump administration is committed to AUKUS more broadly.
“These are exciting days and we need to make sure my government gets behind these projects, that we make sure they are delivered and that we can keep Western Australia’s economy going as it becomes the strongest in the nation.”
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