Critical Minerals

See below article.
Lets hope PEK get a piece of this.

"Australia’s critical miners and rare earths operators say backing for the sector from the US government shows how significant the local industry amid an urgent increase in production.

Gina Raimondo, the US Commerce Secretary, said the Biden administration would direct its export financing arms to support Australian critical mineral projects in the hope of boosting the supply of materials in a sector dominated by China.

Ms Raimondo made the remarks after meeting with Trade Minister Dan Tehan and rare earth mining executives in Washington. Mr Tehan also met with the Export Import Bank and the Development Finance Corporation, two agencies similar to Export Finance Australia.

David Woodall, the managing director of the ASX-listed Australian Strategic Materials, was with Mr Tehan’s delegation in Washington.

“Our discussions in the US confirm what we have been hearing worldwide about the urgent need to de-risk the global critical minerals supply chain, something that ASM’s vertically integrated ‘mine to metal’ strategy delivers,” Mr Woodall told The Australian.

“The announcement … is most welcome, as a co-ordinated global effort from governments and industry will be needed to scale and ramp-up critical minerals projects within an urgent time frame.

“This is a strategic investment by the US and an acknowledgment that Australia can be a significant contributor to the global critical minerals supply chain – we have the resources, skills and capability, with some of the most stringent environmental standards, to be the reliable alternative in the critical minerals supply chain,” he said.

ASM is developing a zirconium and rare earth materials project in Toongi, near the regional NSW centre of Dubbo. ASM shares rose 6c to close at $7.49, giving the company a market capitalisation of more than $1bn. They have risen 57 per cent in the last 12 months.

VHM Limited, backed by mining billionaire Chris Ellison, is developing a major zircon and rare earth minerals project in Swan Hill in Victoria, and working to establish a rare earth minerals refinery in South Australia. The company has one of the highest-grade rare earths deposits which was earlier expected to have a value of up to $1.3bn.

“In the past, the critical minerals sector has found the funding and developments of new projects challenging,” said an VHM spokeswoman.

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“Access to finance from the US government is a significant step forward for the sector, and one which VHM is very excited about.”

Ms Raimondo said the companies she and Mr Tehan had met with had requested assistance with financing their projects, with China controlling some 80 per cent of the sector.

The International Monetary Fund, in a report released last year, said Australia would be one of the key beneficiaries for soaring demanding for critical minerals. The sector was expected to rise to some $18 trillion in the next 20 years, the IMF analysis found.

“Prices would reach historical peaks for an unprecedented, sustained period under the net zero by 2050 emissions scenario. The prices of cobalt, lithium, and nickel would rise several hundred per cent from 2020 levels,” the report reads.

Critical minerals included on the US government’s official list include zinc, nickel, cobalt, graphite and several dozen other minerals.

“We believe this step, among many other government support initiatives, is helping to support the dawn of a new Australian critical minerals ecosystem,” said a spokesman for Cobalt Blue, which earlier this month was granted major project status for its $560m cobalt mine near Broken Hill. That project will produce 16,700 tonnes of cobalt sulfate annually.

“These important raw materials are essential in supporting the global energy transition away from fossil fuels and to meet the world’s ambitious emissions targets,” the company said.

“Access to these types of funds will only ensure our project can get up and running as smooth and rapidly as possible.”

Cobalt Blue shares rose 5c, or 6.5 per cent, to close at 82c".