Meanwhile in Australia, the federal government recently selected...

Meanwhile in Australia, the federal government recently selected 15 rare earths mining projects that it will support as part of a joint effort with the United States to stand up to the Chinese dominance. Together, these would require funding of US$3.9 billion (A$5.7 billion), The Financial Times reported recently.

“The critical minerals sector is vital for defence, with many of our advanced capabilities depending on them. That means it is essential we have a secure source of supply, especially given the current geopolitical headwinds,” Australia’s defense minister, Linda Reynolds, said as quoted by the FT recently.

Rare earths are vital for developed economies not just because of their defence industry applications, but because they are in every electronic device. Recycling is not an option because they are used in minute amounts, which makes extracting them for reuse too expensive for the time being. Beginning local production makes the best sense, even if it comes with a delay.

By Irina Slav for Oilprice.com

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