Australia and the United States have signed a bilateral framework for critical minerals and rare earths, an agreement that will facilitate a secure supply chain for the mining and processing of such critical minerals for both countries.
The two countries agreed to invest in more than US$3 billion in critical mineral projects in the next six months, with recoverable resources in the projects estimated to be worth US$53 billion according to a fact sheet from the White House. Both countries will also provide at least US$1 billion in investments towards an US$8.5 billion pipeline of critical mineral projects in the US and Australia, according to a statement from Australian Prime Minister Anthony Albanese.
Albanese said the “historic framework” is proof of the partnership between Australia and the US.
“Australia is home to much of the periodic table of critical minerals and rare earth metals that are vital for defence and other advanced technologies,” the prime minister said.
The two governments have committed to two priority projects: the Alcoa-Sojitz Gallium Recovery Project in Wagerup, Western Australia and the Arafura Nolans project in the Northern Territory.
The Australian government will invest US$200 million in equity finance for the Alcoa-Sojitz Gallium project, which is projected to provide up to 10 per cent of total global gallium supply. The project is a trilateral project between the US, Australia and Japan, with Japan having already provided 50 per cent of the project’s costs to date.
Australia will also invest US$100 million into the Arafura Nolans project. Once operational, the project will produce 5 per cent of global rare earths.
Meanwhile, Australian heavy rare earths developer Northern Minerals Ltd. has received non-binding and conditional letters of support from Australian and US government agencies, backing the financing and development of the company’s Browns Range Heavy Rare Earths Project.
The Export-Import Bank of the United States is considering financing up to US$230 million in the project in cooperation with Export Finance Australia, according to a company release.
Browns Range will produce pure-play Dysprosium, Terbium and Yttrium-rich heavy rare earths projects of scale outside of China.
First production is targeted from 2028, subject to funding. Browns Range has the capacity to produce 8 per cent of current global Dysprosium and Terbium supply.
