Mining projects in Western Australia and the Northern Territory will be the first to benefit from a critical minerals agreement signed with the United States.
Prime Minister Anthony Albanese and US President Donald Trump today (October 21) signed the Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths during a long-anticipated meeting of the two leaders in Washington.
Prime Minister Albanese said, to complement the Framework, the US and Australia would each provide at least USD$1 billion in investments towards an USD$8.5 billion pipeline of priority critical minerals projects in Australia and the United States over the next six months.
“Two of those priority projects have financial commitments being announced today by the Australian Government.”
He said the first project was the Alcoa-Sojitz Gallium Recovery Project in Wagerup, Western Australia, where Australia would contribute USD$200 million in concessional equity finance, which includes a right of offtake, with the US also making an equity investment with a right of offtake.
“This project will provide up to 10 percent of total global gallium supply. Gallium is an essential input for defence and semiconductor manufacturing.”
Prime Minister Albanese said this was a trilateral project with Japan, which had already provided 50 percent of the project costs to date.
He said second project was the Arafura Nolans project in the Northern Territory, where Australia would make a USD$100 million equity investment.
“Once operational, this project will produce 5 percent of global rare earths essential for energy security and defence.”
Prime Minister Albanese said the new agreement would deliver a US/Australia secured supply chain for critical minerals and rare earths, required for defence and other advanced technologies.
“This represents a significant new chapter in the over 70 years of our formal Alliance.
“The historic framework will assist both countries in achieving resilience and security of critical minerals and rare earths supply chains, including mining, separation, and processing, through use of economic policy tools and coordinated investment.”
Prime Minister Albanese said a US-Australia Critical Minerals Supply Security Response Group would be established under the leadership of the US Secretary of Energy and the Australian Minister for Resources to identify priority minerals and supply vulnerabilities and to develop a coordinated plan to accelerate delivery of processed minerals under this Framework.
“There are no closer friends and allies than the United States of America and Australia.
“President Trump and I agreed today we will work very hard together in both our nations’ interests.
“We’ve agreed today Australia and America are going to make more things together with our historic framework on critical minerals.
“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.
“Cooperation on critical minerals and rare earth supply chains is testament to the trusted partnership between Australia and the United States as strategic defence allies.”
