A landmark mining deal between the US and Australia has already delivered more than $5 billion in funding commitments across 10 major projects, six months after Donald Trump and Anthony Albanese signed the deal.
The prime minister and president of the United States reached an agreement last October after months of negotiations against the backdrop of China’s holdings of the world’s most sought-after precious metals and rare earths, which are used in everything from electric car batteries to advanced weapons systems.
At the time, Trump predicted that within a year, “we will have so many precious and rare minerals that you won’t know what to do with” while the Albanians hailed the project as a win for both countries.
Both countries agreed to provide up to 1.5 billion dollars within six months for specific projects; The $5 billion awarded so far has exceeded the original pledge.
Natural Resources Minister Madeleine King and US Interior Secretary Doug Burgum recently met in Tokyo and discussed 10 initial projects, and also discussed two other projects expected to be implemented.
“Australia is leading the world in transforming critical supply chains for precious metals and rare earths, which are critical to supporting economic and national security for Australia and our trading partners,” King said.
“Australia and the United States are delivering on commitments made in the White House, with priority projects in Australia supporting the production of rare earths and key minerals including nickel, cobalt, gallium, magnesium, vanadium and graphite.
“These materials are essential for defense systems, advanced manufacturing and clean energy technologies that will help Australia and the world meet the net zero commitment.”
Projects already announced are Donald’s Astron Rare Earths Project, LaTrobe Magnesium project and VHM Goschen Rare Earth and Mineral Sands Project, all in Victoria; RZ Resources’ Copi Rare Earths Project in NSW; Nolan’s Arafura Project in AJ; Graphinex’s Esmerelda graphite mine and EQ Resources’ Mt Carbine Tungsten Project, both in Queensland; and three projects in Western Australia – the Alcoa gallium recovery project, the Northern Minerals rare earth project and the Global Advanced Metals project.
At least two more WA-based projects – Tronox Holdings’ rare earth refinery and Ardea Resources’ Kalgoorlie Nickel Project – are also in line for nearly $1 billion each, with letters of support signed by King and Burgum.
This opens the door for Export Finance Australia and the US Export-Import Bank to provide the same financial support for these two additional projects that they have already provided for the first 10 projects.
Business Minister Don Farrell said the projects were an important economic opportunity for Australia at a time when demand for scarce land was increasing.
“Australia has abundant deposits of precious metals and rare earths, well-established resource and energy supply chains, and expertise in mining and processing those minerals,” Farrell said.
When the program was first announced, owned by the Chinese government Global Times responded by saying it “cannot shake China’s dominant position” in the supply of rare earths because of its prominence in the refining of precious metals.
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James Massola is a leading political analyst. He was previously national affairs editor and Southeast Asia writer. He has won Quill and Kennedy awards and was a Walkley finalist. Connect securely to Waves @jamesmassola.01Connect through X or email address.
