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SMH "Australia eyes 'clear gaps' in US minerals supply amid China trade row"
By Nick ToscanoOctober 1, 2019 — 4.44pmShare on FacebookShare on TwitterSend via EmailNormal text sizeLarger text sizeVery large text size
Australian rare earth miners could become major exporters to the United States as the Trump administration looks to lessen its reliance on China for the supply of valuable ingredients used in high-tech weapons, smart phones and electric vehicles.In a new report released on Tuesday, the Australian Trade and Investment Commission (ATIC) has highlighted the potential for Australia to increase exports of a group of 17 obscure minerals that are used to manufacture high-technology products, as well as critical minerals such as cobalt, magnesium and lithium, which is used in batteries.Lynas's Mount Weld mine in Western Australia, the richest known rare earths deposit in the world.Its release comes as China's dominant position as the world's primary producer of rare earths and minerals triggers growing alarm in Washington following warnings that Beijing may move to restrict shipments due to its trade war with the US.According to some estimates, China may hold up to 50 per cent of known global resources of rare earths elements and 80 per cent of their production, the report said.AdvertisementAustralian miner Lynas is the only significant rare earths producer outside of China and any move by Beijing to crimp supply would increase Lynas' importance. Lynas has recently secured a temporary increase in its licence to operate in Malaysia amid widespread opposition to the low level radioactive waste produced by the process.Lynas is developing a processing plant in Texas in a partnership with Blue Line Corporation to separate and extract rare earths from ore."We have some of the world's richest stocks of critical minerals," Trade Minister Simon Birmingham said."This report shows there are huge export opportunities for Australian critical minerals producers in markets such as the US where there are clear gaps in the supply chain."Australia is home to some of the world's largest recoverable deposits of critical minerals and the world's second-largest producer of rare-earth elements including neodymium and praseodymium, which are used to make permanent magnets, Resources Minister Matt Canavan said.US President Donald Trump earlier this year moved to reduce dependence on Chinese supply chains for the US Department of Defence.CREDIT:ALEX ELLINGHAUSEN"Our political stability, strong environmental and safety regulations and existing expertise in the resources sector also adds to our appeal as a partner in the global supply chain of rare-earth elements," Mr Canavan said.US President Donald Trump earlier this year moved to reduce dependence on Chinese supply chains for the US defence department, prohibiting the purchase of devices that contain magnets or tungsten from China, North Korea and Russia. And Mr Trump in July signed a memorandum authorising the defence department to direct funding to resources or technology.The Australian Trade and Investment Commission said such moves had opened up a new opportunity for Australian companies to supply a growing US specialist manufacturing industry.The Minerals Council of Australia, an industry group representing the nation's biggest miners, said there was "enormous potential" to grow Australia's trade and investment through the rare earth and critical minerals."Australia is well-positioned to extract and export the critical minerals the world needs for faster, smaller and more powerful technology," Minerals Council chief executive Tania Constable said."Australia has pioneered new advances in extractive technologies and is ideally placed to lead the growth of critical minerals globally."
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