This is why they are buying GNM today.US agrees tofund...

This is why they are buying GNM today.

US agrees tofund Australian critical minerals projects -AFR

Washington | USCommerce Secretary Gina Raimondo has committed to help finance Australiancritical minerals projects through its export financing arms, as President JoeBiden invokes Cold War powers to boost domestic supply of minerals crucial fordefence equipment and electric vehicles.

MsRaimondo and Australian Trade Minister Dan Tehan met for an hour on Wednesday(Thursday AEDT) in Washington with chief executives from critical mineralsproducers to iron out regulatory hurdles that prevent US financing agencies from investing in such projects.

“We’vejust got a long to-do list from the companies in there about the help they needwith financing, the help they need with regulation, the help they need withpermitting,” Ms Raimondo said.

Ms Raimondo, the former governor of Rhode Island and currentchair of the US Development Finance Corporation, said she would be “going oneby one breaking down barriers” to facilitate investment in such projects.

InNovember last year, the US updated an official list of critical minerals such as nickel and zinc that are central to energy, defence, electronics and other vital industries, as the administration tries to reduce its dependence on overseas supplies.

On Thursday (Friday AEDT), PresidentBiden is expected to enact Defence Production Act – a wartime power – thatenables the government to fund the production of these minerals at currentoperations, as well as related productivity improvements, safety upgrades, andfeasibility studies.

Theshare prices of critical minerals stocks in the US rose on the leaked news.

Australiancompanies that stand to gain include Iluka, Australian Strategic Minerals,Cobalt Blue, Lynas, RZ Resources and VHM. Lithium company Ioneer is seekingfunding from the US Department of Energy of about $US500 million ($665.9million) and is currently in a due diligence process.

Demandfor critical minerals is being driven by increased manufacturing of renewableenergy, but there are also supply problems. The US wants to move away from itsdependence on China’s production, which accounts for as much as 80 per cent ofglobal supply.

Sanctionson Russia’s exports over its invasion of Ukraine is also adding pressure onsupply.

MrTehan met with officials from the Export Import Bank and the US DevelopmentFinance Corporation – the two equivalent agencies of Export Finance Australia –this week in Washington. He also met with US Senators to firm up support forchanges.

“We are going to be making sure that we work to get the agencieslined up to do the type of work we need to get that investment, whether it bewith debt or equity,” Mr Tehan said.

Accordingto the International Monetary Fund, Australia is in pole position to benefitfrom a sixfold increase in demand in critical minerals worth $US12.9 trillion over the next two decades.

MrTehan and Secretary Raimondo also met to launch the so-called Indo- PacificEconomic Framework, part of the inaugural Australia-US Strategic CommercialDialogue. The ongoing dialogue is between the US Commerce Department andAustralia’s Department of Foreign Affairs and Trade.

MsRaimondo said the US and Australia stood side by side against China’s economiccoercion and human rights abuses.

“China’santicompetitive coercion, there is no place for that. And we will stand withour allies against that, whether it is unfair practices as it relates to trade,which undermined the stability of our industrial base and our workers, orwhether it is standing up against the human rights abuses, we’ll stand strongwith our allies to do that,” she said.

She said the US and Australia would be drawing up alist of countries to be included in the Indo-Pacific Economic Framework andthat strides were being taken.

“It’s a region for which we have been absent in therecent years. And it’s time for us to step up affirmatively around the digitaleconomy, supply chains, critical minerals, infrastructure (and) the greeneconomy,” she said.

Matthew Cranston is the United States correspondent, based inWashington.