Lynas Mt Weld REE pit
The negotiations between the US and Australia on rare earth mines outside of China are energetically pursued
MELBOURNE (BLOOMBERG) - Australia is holding independent discussions with the United States, Japan and South Korea to develop local rare earth mining projects to support production outside of China, which dominates production of these materials.
Rare Earths, a group of 17 elements needed for components of consumer electronics weapons systems and many more, had been identified as a potential weapon in US-China trade relations, with attention focused on exploring new sources of supply.
"There are good reasons for a global collaboration to improve the supply of these minerals," said Australia's Minister of Resources Matt Canavan on Sunday (October 13) in an interview with Sky News on television.
"The concentration of all of these market shares could pose a risk to the security and affordability of supplies of these critical minerals," he said.
Australian officials held new talks with their US counterparts last week and wondering how best to help projects access finance and secure long-term supply contracts, he said. Similar discussions took place last month in Japan and South Korea, Mr Canavan said.
In July, President Donald Trump ordered the Department of Defense to boost the production of a number of rare earth magnets used in military hardware, as China could restrict the export of its products.
Scientists from the US Geological Survey also toured projects in Australia last year, including the North Minerals' Browns Range development.
Lynas Corp., the largest producer of rare earths outside of China, has held discussions with the US Department of Defense and the Defense Logistics Agency, the manufacturer said in August. The company with a mine in Australia and a processing plant in Malaysia is considering plans for another location in Texas.
The Straits Times / ISE - October 2019
