Miners delight in rare earths funding in US-Aust pact
The Western Australian town of Wagerup and the central hub of Alice Springs will be the first places to see jointly US-Australian-financed critical mineral facilities.
Australia will increase production of much-needed resources after a deal was signed by Anthony Albanese and Donald Trump at the White House on Tuesday morning.
Mr Albanese said the deal would see “an accelerated pipeline of priority projects” with $1.5 billion in investment from both countries to secure the supply chain.
Mr. Trump said it was possible after rapid negotiations over the last four or five months.
“And it was good timing, and we did it just in time for the visit,” the US president said.
“About a year from now, we’ll have so many critical minerals and rare earths that you won’t know what to do with them.”
Minerals Council of Australia chief executive Tania Constable said the deal would “unlock” $13 billion worth of production.
“This is a recognition of Australia’s strategically important role in the development of new technologies, defense capabilities and renewable energy infrastructure stemming from the country’s diverse critical minerals,” he said.
The value of listed rare earth companies has exploded in recent months given their coveted status.
Arafura Rare Earths’ share price was 19.5 cents at the beginning of the month and has more than doubled to 48 cents; Lynas Rare Earths was available for $14.63 a month ago – now it’s $20.51.
The first step of the agreement will be the supply of gallium through a new facility in Peel, WA, in conjunction with Alcoa’s Alumina Refinery.
Used in defense and semiconductor manufacturing, gallium is a critical mineral produced when producing alumina from bauxite, as Alcoa does here.
Alcoa has said it will aim to bring production online next year, with the expectation of producing 100 metric tons (or up to 10 percent of total gallium supply) each year in a market dominated by China.
“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 chairman William F. Oplinger.
Australia will initially invest 306 million dollars in the facility, which is also co-financed by Japan.
In the Northern Territory, the US and Australia support Arafura’s Nolans project, about 135 km north of Alice Springs.
Arafura will mine neodymium and praseodymium with a target supply of 4,440 tonnes per year, estimated to account for five to 10 percent of global demand.
EY spokesman Luke Branson said the US-Australian investment was extremely welcome, given the sector “has struggled to gain traction due to volatile markets and high initial and ongoing costs”.
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