The government has also mentioned cobalt as a priority mineral...

The government has also mentioned cobalt as a priority mineral this is all relevant to CNJ

Big opportunity for Australia as US craves rare metalsMinister for Trade, Tourism and Investment Simon Birmingham. Picture: AAPNick EvansResource Writer1:00AM October 1, 20197 CommentsThe defence establishment and key US companies may have to team up with Australian miners to secure access to critical minerals, according to a new report from Austrade touting the potential export value of rare earths and other minor metals. Critical minerals have become the centrepiece of trade talks between Canberra and Washington over the last year as the trade war between the world’s two biggest economies heated up and the US defence establishment moved to lessen its reliance on China for the supply of a host of rare metals essential for the production of weapons systems and other hi-tech equipment. A new report from Austrade, highlighting the opportunities for Australia, which is rich in many of the key metals, will be released by Trade Minister Simon Birmingham and Resources Minister Matt Canavan on Tuesday.But, while Mr Birmingham said the report shows the “huge opportunity” on offer for Australian miners in the key commodities, it also mirrors industry warnings that the US will need to help fund development of projects in order for both sides to reap the benefits.“ This report shows there are huge export opportunities for Australian critical minerals producers in markets such as the US where there are clear gaps in the supply chain,” Senator Birmingham said.“ In order for Australia to fully take advantage of the growing demand for critical minerals we need to continue to attract domestic and overseas investment that develops stable and sustainable global supply chains.” China dominates the supply and processing of a host of minor metals such as the 17 so-called rare earth elements, including tungsten, magnesium and cobalt, which are critical ingredients for technology ranging from smartphones to batteries and renewable energy. The US has identified its lack of non-Chinese supply of the minerals as a critical weakness in its defence and advanced technology manufacturing sectors, and the administration of President Donald Trump has ordered US officials to seek out alternative supplies from friendlier jurisdictions such as Australia. The federal government has responded enthusiastically, developing a critical minerals strategy and engaging to encourage Australian explorers and project developers to seize the opportunity. But despite the political goodwill, the Austrade report identifies the lack of downstream processing for rare earths, and other critical minerals that need significant refining, as a major challenge for Australian miners, suggesting the US government and defence industry may need to put up cash to help secure their supply chain.“ In the absence of US processing capabilities with appropriate scale, Australian suppliers will either need to build their own processing plants or rely on facilities elsewhere to provide the separated alloy, metal or chemical to the US manufacturer or end user,” the report says.“ The disparity between US commercial demands and the capacity of US companies is the decisive metric assessing Australia’s potential commercial opportunity — if processing facilities can be developed.” There are a number of models that could assist revitalising the US’s domestic downstream processing of rare-earths, the report says.“One possibility could be establishing a consortium between government, defence firms and critical minerals companies to identify commercial opportunities, covering offtake agreements, debt finance, direct investment into projects, and developing new downstream processing capabilities in Australia and/or the US.” That requirement was flagged by the boss of the only non-Chinese supply of refined rare earth minerals in August, with Lynas managing director Amanda Lacaze saying that the US may need to develop a pricing and funding structure that ensured the long-term viability of suppliers if it wanted to end its reliance on Chinese materials. Mechanisms could include concessional loans to producers, or long-term contract pricing above spot market prices, similar to pricing structures used by nuclear power plants to ensure uranium is available in the market.Nick Evans Resource Writer