This policy is perfectly suited to kickstarting a new Australian industry rather than for an existing one.
It already looks like the government will have no trouble with graphite over say a commodity like dysprosium.
Graphite does not face the same problem as rare earths because Purified Spherical Graphite (PSG) is not currently produced in Australia. Therefore, I can see how Lynas may have concerns. Especially when another Australian project like AR3's Koppamurra will have a superior lower OPEX, that will significantly undercut them, given that it has just invested in a dysprosium facility in Malaysia. That's what needs to be resolved.
The object is to kickstart western alternative supply chain that other nations are struggling to be competitive on. China engages in a game of stockpiling by reinvesting in its own producers in order to gain 'leverage'. This heavily subsidised game doesn't create a level playing field and we have seen a few African graphite players suffering to be competitive, i,e SYR.
The Australia Government is there to strategically provide its producers with a solid platform so that it can thrive on the international scene. The western world knows that only Australia has the capabilities of providing such a strategic incentive, as our stable government and GDP is higher than that of, say, any country in Africa and we have the large resources to leverage and compete with China.
I recall DC saying in the webinar that Chinese anode players are already defaulting. So, if their costs are unsustainable now, they will be more so when the proposed Reserve is implemented.
This is an ideal situation for RNU's BAM Project. This is why I believe, RNU will probably be among the scheme's earliest beneficiaries, if not the first!!!
All IMO, DYOR, GLTA(patient)H
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