AUST Business today (extracts) Note last sentence:
CHINA A RARE EARTHS THREAT: ILUKA
ceo blasts Asian nation’s near monopoly as P.M. pledges stockpile
Brad Thompson
Iluka Resources CEO Tom O’Leary says China’s near monopoly in rare earths poses a clear threat to Western nations, as his company readies to play a key role in creating an Australian critical minerals strategic reserve.
Iluka’s part-built rare earths refinery at Eneabba in Western Australia has taken on greater strategic importance since China’s move to weaponise rare earths in response to tariffs wielded by the Trump administration.
Mr O’Leary highlighted China’s control and manipulation of rare earths supply as he welcomed moves to create a strategic reserve on home soil. Labor has said it will create the facility and pump an additional $1bn into the Critical Minerals Facility set up by the Morrison government if it is returned to office on May 3. This would happen even if it runs the risk of antagonising China.
“We look forward to participating in the policy design process as there’s quite a bit of detail to be worked through, including how minerals will be priced and the value addition threshold that will apply,” Mr O’Leary said.
“From a rare earths perspective, it’s imperative that the reserve, and other government policies, are aligned to foster an Australian rare earths refining industry, as distinct from promoting the export of concentrates and other unrefined intermediates, with the refining being done overseas.”
Mr O’Leary warned allowing the export of part-processed rare earths would empower China and tighten its stranglehold on supply.
Iluka has received $1.65bn in taxpayer funding to build Australia’s first fully integrated rare earths refinery, with the initial funding signed off in the dying days of the Morrison government and an additional $400m loan shelled out under Labor…….
……..Mr O’Leary said Iluka would provide a secure source of refined rare earth oxides through its existing partnership with the government. “We’re an established minerals processor that will be mining, processing and refining rare earth oxides in Australia,” he said.
“This is the security of supply of refined products that will be the foundation of an independent Western supply chain that is clearly required. China’s monopoly is the result of a deliberate approach over several decades, while the West focused on price only and ignored security of supply.”…….
……The government could opt to use any strategic reserve as a bargaining chip in trade and tariff negotiations with the US. “The refinery will be commissioned in 2027 and, at that point, it will be the only material Western world producer of refined heavy rare earth oxides,” Mr O’Leary said.
“The threat posed to Western and like-minded manufacturing by China’s monopoly has been self-evident for some time. Importantly, we will not be linking the price of our rare earths to the Asian Metals Index, which is one additional means through which China exercises its market control. Instead, we’re working with customers to develop a pricing approach that values secure, sustainable supply.”
Iluka plans to process stockpiles of tailings rich in rare earths it has left over from mineral sands mining, but also has a supply agreement with Northern Minerals for heavy rare earths from its Browns Range project in WA…..
Lynas declined to comment.
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