Rare earths on the Trump-Morrison agenda

Phillip CooreyPolitical Editor

Sep 15, 2019 — 8.00pm

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Mr Morrison leaves on Thursday for what will be the first state visit to the US by an Australian prime minster since John Howard was feted by George W Bush in 2006, and what is only the second state visit to be offered to any leader by Mr Trump.

Shoulder to shoulder: Prime Minister Scott Morrison. left, and US President Donald Trump. AAP

Talks in Washington will focus on how both sides can boost their efforts in the Indo-Pacific.

This will include the Pacific step-up announced last year by Mr Morrison; a joint program by the US, Australia, New Zealand and Japan to provide electricity to 70 per cent of Papua New Guinea by 2030; other critical infrastructure projects; and joint US-Australian efforts on so-called “critical minerals”.

Critical minerals, including rare earths, lithium, copper and cobalt, are a vital part of the defence supply chain, being used in everything from weapons guidance systems to improving the durability of electronics used in the field. They are also vital for wind turbines and electric vehicles.

Australia’s defence capability is affected through the staged purchase of F-35 Joint Strike Fighters from US, which have been reported to contain around half a tonne of rare earths.

China controls at least 80 per cent of the global trade in rare earths.

The Australian Financial Review reported in June that the US State Department was working with Canada and Australia to better understand what critical minerals each country had and how these could be developed.

It is regarded as a top-line national security issue.

Austrade has put together a prospectus of these minerals, which could be developed with the help of capital from the US, Europe, Japan or South Korea.

One company which could benefit is junior miner Arafura Resources, which is seeking funding for its $1.1 billion rare earths project outside Alice Springs in the Northern Territory.

Mr Morrison will also address the United Nations General Assembly in New York in the middle of next week, but will skip a special UN climate change summit at the start of the week and send Foreign Minister Marise Payne instead.

Mr Morrison shrugged off criticism from Labor on Sunday for missing the climate event, saying his government’s climate policy was set and Australia would no longer be contributing to the UN’s Climate Fund.

“Australia has already outlined our policies to tackle climate change, including cutting our emissions by 26-28 per cent and investing directly into climate resilience projects through our regional partners,” Mr Morrison said.

“As the Government has said previously, we’re investing directly with our regional partners given the frustrations they have faced with the UN’s Green Climate Fund.”

But the issue is expected to be raised in Canberra on Monday when Mr Morrison hosts his Fijian counterpart Frank Bainimarama, who is a lead advocate in the region for climate action.

Interesting article on AFR