Australian mining stocks soar following Albanese-Trump critical minerals deal
Australian mining shares rose on Tuesday morning following the historic critical mining deal struck between US President Donald Trump and Anthony Albanese in Washington DC overnight.
The benchmark ASX 200 rose 0.5 percent to 9077.5 points in the first hour of trading, while the mining sector led the way with a strong rise of 2 percent.
The $13.5 billion framework agreement struck by Mr Trump and the Prime Minister to secure essential materials used in sensitive defense and technology industries is expected to accelerate approvals for critical mineral projects in Australia.
Arafura Rare Earths’ Nolans project in the NT will benefit immediately, with the company announcing that the US Export-Import Bank will consider investing up to $460 million in the proposed mine.
Arafura’s shares rose 26 percent at the opening bell, adding $365 million to the company’s market value.
If Nolans goes ahead, the mine is expected to produce about 5 percent of the world’s rare earth supply.
“US EXIM’s support, in collaboration with the Australian government, demonstrates a diversified rare earth supply chain and a proactive approach to developing downstream production capacity,” said Arafura CEO Darryl Cuzzubbo.
Meanwhile, Alcoa Corporation rose more than 8 percent to $60.10 at 11 a.m. after the company said the Australian and U.S. governments would support a proposed gallium plant co-located at the Wagerup alumina refinery in Western Australia.
Gallium is a critical mineral used in the semiconductor and defense industries.
“Alcoa is a strong contributor to both the American and Australian economies and welcomes the opportunity to support both countries in developing a new source of gallium,” said Alcoa CEO William F. Oplinger.
“Investment support from the US and Australian governments underscores Alcoa’s role in supporting the development of the critical minerals supply chain and the importance of our Australian operations not only to the aluminum industry but also to the manufacturing, technology and defense industries.”
The term “critical minerals” covers a range of products, from lithium and gallium to cobalt and rare earths.
Minerals have attracted global attention in recent weeks after China announced it would restrict rare earth exports to the United States, exposing supply weaknesses that could cripple Western economies.
Australia’s critical mineral stocks are generally on the rise.
Australian Strategic Materials rose 15 per cent to $1.60, while Cobalt Blue rose 16.6 per cent to 24c.
Mining giant BHP reached a market value of $224.31 billion, with an increase of 2.4 percent at the opening, after the announcement of its first quarter production results for the 2026 financial year.
Production decreased compared to the previous quarter, but the annual production of the copper division increased by 4 percent, reaching 493.6 tons.
BHP chief executive Mike Henry also said recent production cuts at other copper miners would benefit the company.
Iron ore production reached 64.1 million tons, decreasing by 1% compared to the previous year.
