TRANSCRIPT
Australia's mining sector is celebrating after a newly inked deal to offer a steady supply of critical minerals to the United States.
ALBANESE: "This is an 8.5 billion dollar pipeline that we have ready to go. Just getting started."
TRUMP: "That's right. We're doing a real job on rare earth."
The deal comes during a long-awaited meeting between Prime Minister Anthony Albanese and US President Donald Trump.
President Trump has looked to Australia as a suitable alternative to the US's geopolitical rival China which has long dominated global rare earth exports.
Australia is home to the world's largest deposits of critical minerals which are mined here but mostly exported to and processed in China which controls 90 per cent of global supply chains.
Tania Constable, CEO of the Minerals Council of Australia has declared the deal as a triumph.
"It's important that no single country has a monopoly on all of the minerals required for every day use. So this sort of announcement is important to meet a number of countries' needs and Australia is central to that."
Critical minerals are used in everything from smart phones to electric cars, artificial intelligence and weapons.
The new deal will see $5 billion dollars of joint investment in the next six months unlock a pipeline of projects
"In about a year from now, we'll have so much critical mineral and rare earths you won't know what to do with them, they'll be worth about 2 dollars."
And shares of rare earth companies have soared in early trade on the Australian Stock Exchange.
Alcoa's developing a gallium refinery in Western Australia and the Gina Rinehart-backed Arafura Rare Earths near Alice Springs also mines the minerals critical for defence projects.
Though Opposition leader Sussan Ley says the Coalition isn't celebrating yet.
"It's high level, we'll go through the detail. But we also know if you are a resources company in this country or a company that relies on energy, if you dig anything out of the ground you need cheap, reliable energy."
Labor announced a Critical Minerals Reserve back in April and has been in talks with the mining sector since to set price floors so companies don't lose money if they set aside product for the US instead of Australia's typical export partner, China.
Ms Constable from the Minerals Council says it's an opportunity to strengthen our relationship with a key ally while delivering a boost to the Australian economy.
"Australia is incredibly good at mining, but we are one part of the supply chain and we can't do it by ourselves. The United States is incredibly good at manufacturing. So we need to work together to make sure there's a secure supply chain so that everyone has access to critical minerals to meet their needs."
