"As a follow-up of a virtual summit meeting between the prime ministers of the two countries, India and Australia have signed a Memorandum of Understanding on June 4, 2020 for supplying critical minerals to India. These include lithium, cobalt, zircon, antimony, tantalum and rare earths."
From AFR 6th July, (cant post link) Brad ThompsonReporter
Jul 6, 2020 – 5.11pm
Defence Minister Linda Reynolds says Australia must step up in supplying rare earths and other critical minerals increasingly important to its armed forces and those of allies.
Senator Reynolds raised the prospect of increased government support for rare earths on Monday as Australia looks to boost defence capability and western nations seek to reduce their reliance on China.
ASX-listed Lynas remains the biggest, and only significant non-China supplier, of rare earths materials now essential in electronics, wind turbines, electric vehicles and in the military.
Ms Reynolds, speaking at a breakfast hosted by the Perth USAsia Centre, said the supply of rare earths was too concentrated. In highlighting the strategic importance of non-China supply, she said each F-35 joint strike fighter included 417 kilograms of rare earths.
Rare earths are also used in guided missiles, night vision goggles and other military technology.
Australia was working with the US and other partners through the multi-country Energy Resource Governance Initiative to boost supply, Ms Reynolds said. “Here in Australia, we have significant geological reserves of critical minerals and rare earth elements, and we are well placed to capitalise on rising global demand,” she said.
“But there is still significant concentration of supply chains in this sector and in the capital that funds and prioritises off-take agreements.
“Australia is very well placed to step further into this market, and bolster global supply chain security.”
The minister has been a long-time campaigner for sovereign supply of critical minerals and rare earths materials. In 2018, she led the first critical minerals delegation to Canberra to raise awareness of the strategic importance of the industry. Lynas remains in the running for Pentagon funding towards a heavy rare earths separation plant in Texas despite a push back from a group of Republican senators who are backing US-only supply chains.
Amanda Lacaze-led Lynas mines rare earths in WA and carries out processing in Malaysia, where it does not have capacity to separate heavy rare earths.
In April, Lynas signalled it may turn to governments anxious to reduce their reliance on China to help fund a vital $500 million capital works program as it grappled with a four-year low in rare earths prices in the wake of COVID-19.
“Non-traditional sources of funds have served this business very well, government funding in particular. So we could seek to progress discussions with various governments in respect to funding,” Ms Lacaze said at the time.
Lynas, which counts Japan Inc as its major backer, has earmarked a site at Kalgoorlie in WA for a new cracking and leaching plant that needs to be up and running by July 2023 under operating deadlines set by the Malaysian government.
Emerging heavy rare earths producer Northern Minerals said last week it would partially restart its pilot plant in WA's Kimberley region.
The plant was put into care and maintenance in March because of what the company said were COVID-19-related travel restrictions and the threat the virus posed to indigenous communities in the remote area.
Treasurer Josh Frydenberg recently blocked Chinese company Baogang's plans for a $20 million equity investment in Northern Minerals, which has been supplying a heavy rare earths carbonate to customers in China.
The Coalition government's Northern Australian Infrastructure Facility (NAIF) is providing $150 million in financial backing for a new mineral sands mine in WA that includes secondary rare earths capacity. NAIF is also considering backing for Arafura Resources and its $1.1 billion rare earths project, in the Northern Territory.
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That final bit suggests to me NAIF could support the REE rare earths plant down the track.
(20min delay)