USGS 2019, page-8

WORLDASIACHINA RELATIONSAn Australia-Japan partnership could be crucial for minerals securityBy Jeffery WilsonFebruary 7, 2020 — 4.13pmShare on FacebookShare on TwitterSend via EmailNormal text sizeLarger text sizeVery large text size0Leave a commentTODAY'S TOP STORIESAnger and virus cases grow in China as death toll risesCORONAVIRUS OUTBREAKAnger and virus cases grow in China as death toll rises1 hour agoAdd to shortlistRoyal Caribbean bars cruise passengers with Chinese passportsCORONAVIRUS OUTBREAKRoyal Caribbean bars cruise passengers with Chinese passports1 hour agoAdd to shortlistEconomists say RBA is too optimistic in expecting marked rebound this yearRBAEconomists say RBA is too optimistic in expecting marked rebound this year36 minutes agoAdd to shortlistSEQ nearing February rain average in one week, with more to comeWEATHERSEQ nearing February rain average in one week, with more to comeAdd to shortlistThe US-China trade war has thrown up many unexpected surprises for the global economy. One ofthe more concerning is that critical minerals might become a new front in the contest between theeconomic superpowers.Lynas' Mt Weld mine will feed the new cracking and leaching plant.Lynas' Mt Weld mine will feed the new cracking and leaching plant.CREDIT:BLOOMBERGCritical minerals – such as lithium, cobalt and rare earths – are the lifeblood of modern,technological societies. Sometimes called the “vitamins of industry”, they are used in electronics,telecommunications medical, renewable energy and military applications.But current supply chains are not fit-for-purpose. Critical minerals are often monopolised andinsecure, such as China’s control of around 85 per cent of rare earth supplies.In other countries, like the Democratic Republic of Congo child labour in cobalt mining is unfortunately common.As digital technologies and renewable energy systems expand, demand for critical minerals willsteadily rise. It is imperative to develop secure and sustainable supply chains to provide thefoundations for 21st century technologies.Rare earths are increasingly important in high-tech weaponry, such as F-35 aircraft.Rare earths are increasingly important in high-tech weaponry, such as F-35 aircraft.CREDIT:APThis imperative has become more pressing as rare earths are dragged into the US-China trade war.This year, the Chinese government has sent clear signals that it may restrict rare earths to the US aspart of the ongoing trade dispute. This would replay a similar episode in 2010, when Chinese rareearth sales to Japan were suspended during a dispute over the Senkaku islands.If China’s rare earths threat was executed, it would deprive the global economy access to an essential industrial input. And if the trade war escalates further, it is not inconceivable that suppliesof other China-supplied critical minerals – such as gallium, indium, molybdenum and tungsten –could follow suit.