US President Donald Trump and Australian Prime Minister Anthony Albanese have signed an agreement on the implementation of projects in the rare earth metals sector. This is reported by foreign media.
After signing the agreement, the Australian mining company Arafura Rare Earths Ltd. She stated that the US Export-Import Bank plans to invest $300 million in the Australian Nolans project. At the same time, Arafura Rare Earths has received $100 million funding approval from the Australian government.
US Export-Import Bank has also sent notifications to six other mining companies, including VHM Ltd. and Northern Minerals Ltd., regarding the proposed investment of $2.2 billion in rare earth projects.
Alcoa Corp. shares increased by 9.6% after the announcement of a $200 million investment in the Alcoa-Sojitz gallium project in Western Australia. At the same time, Lynas Rare Earths Ltd. and Iluka Resources Ltd. also increased by 9.1%.
The agreement opens up access for mining companies to raise capital and reflects the increased geopolitical tensions between the United States and China in the export of rare earth metals, which are key elements for advanced technologies, batteries, chips and military equipment.
Within six months, the United States and Australia intend to invest an additional $1 billion each in projects for the extraction of essential minerals with a total value of $8.5 billion.
The US administration considers Australia as a partner in diversifying the extraction of rare earths, taking into account the abandonment of dependence on Chinese producers. Nevertheless, the implementation of the projects is long-term. One of the most promising projects is the Browns Range rare earth mine worth $390 million, which is being developed by Northern Minerals in Western Australia and will be launched in two years.
Over the past 12 months, the share prices of some of the largest mining companies have risen sharply after years of declines due to difficulties raising capital amid declining commodity prices and a lack of interest in traditional sources of financing.
Arafura Rare Earths Limited is an Australian mining company developing deposits of rare earth metals (neodymium-praseodymium and mixed oxides of rare earth elements). The headquarters is located in Perth (Australia).
