Is RNU a company in the making? If so, why?Not only are we a...

Is RNU a company in the making? If so, why?

Not only are we a Tier 1 low quartile resource situated in an ESG-strong mining jurisdiction, we also offer the supply chain reliance in a post CV19 geopolitical environment.

It’s now become apparent that the Australian Government is offering multinational players new incentives targeted specifically at them to capture a slice of the metals-intensive ‘4th industrial’ revolution. The coming May budget will outline these specifics. However, in the ‘Future Made in Australia’ critical minerals speech recently stated by the Federal government, we’ll see some kind of incentives and grants coming into the metals/battery sector specifically targeting the private sector to capture the moment.

The next question to ask is, how likely will RNU be a beneficiary?

Given that there is, throughout the world, fierce competition forcapital, Australia will use its robust economic standing and affluence to guarantee that it takes full advantage of this exceptional opportunity. It aims to persuade global players to continue processing and producing high value goods in Australia. Making use of its large Tier 1 metal resource sector and its stable mining jurisdictions, which have a track record of excellent ESG credentials. We may not be able to compete on the basis of low labor costs, or create a local in-country supply for our goods due to our comparatively small population but we can adopt the stance that we are a geopolitical solution, similar to what Lynas has been for Japan, when China in 2012 it used its rare earths monopoly as a trade weapon to put them back in the box.

The goal of geopolitics is to support similarly mined countries in order to ensure a balance of supply into the system, creating more security and resilience. To ensure this, downstream processing in Australia will be incentivised by our government in order to de-risk supply chain investments, so that nations don’t utilise it as a trade weapon as China has showed it is prepared to do with rare earths. Since then, gallium, germanium and now graphite have been targeted.

A future made in Australia is saying we are geopolitically solving problems by offering stability. This is Australia’s great advantage. And it's difficult to argue against RNU being the only advanced shovel-ready option for a PSG solution, regardless of our belief that this is the case.

Exciting times!

AIMO, DYOR GLTA(patient)H