[SYDNEY] Australian Prime Minister Anthony Albanese emphasised the nation’s strong critical minerals reserve and its ability to “value add” ahead of his first official meeting with US President Donald Trump, amid a global push to diversify supply chains away from China.
The nation’s clean-energy infrastructure and open space gives Australia the opportunity to “value add” domestically, Albanese said in an interview with the Australian Broadcasting Corp’s Insiders programme on Sunday (Sep 28).
There are also opportunities to build up “a reserve that makes sure that we can play a role in international markets as well, to stop manipulation, particularly by state enterprises,” he said.
The flow of critical minerals, including rare earths, has been a focus of trade negotiations between the US and China this year. While the Asian nation is a dominant producer of the key elements used in everything from electric vehicles to advanced weaponry, America has ramped up efforts to bolster supply chains that circumvent Beijing.
In the US’ latest policy efforts, the International Development Finance is said to be in talks to set up a US$5 billion fund to invest in critical minerals, Bloomberg reported this month. The Department of Defense also agreed to a US$400 million equity investment in MP Materials earlier in the year.
Australian rare earth miners have been booming this year as trade war tensions and supportive domestic and foreign government policy have boosted their share prices. The sector rallied on the prospect of a critical minerals fund from the US’ International Development, and again in August after the government was reported to be considering price floors.
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Albanese, who is due to meet with Trump in Washington on Oct 20, said in the interview that his conversations with the US president have been “warm, constructive, positive and optimistic.”
“I think it is in both Australia’s interests and the interests of the US that we continue to have a good relationship, and I’m sure that we will,” he said. BLOOMBERG
