Donald Trump and Anthony Albanese have inked a deal for “critical mineral and energy dominance” in a new partnership that will tip billions into mining projects in the US and Australia.
Under the critical minerals framework, mining companies will be able to apply for financing for projects that will produce minerals needed for weapons, electronics, renewable technologies and more.
Alongside the framework, the leaders announced financing from Australia and the US War Department for the first project under the scheme — the development of a gallium refinery in Western Australia under Alcoa-Sojitz.
That refinery is expected to produce about 100 tonnes of gallium a year.
With global demand for the computer chip material being about 700 to 750 tonnes, the move will significantly shift dependence from China, the world’s biggest supplier.
Altogether the Australian and US governments intend to spend $US3 billion ($4.6 billion) in the next six months to make “immediate” investments in a pipeline of critical minerals projects in nearly every state and territory in Australia.
A White House fact sheet described the framework as a plan for “achieving critical mineral and energy dominance”.
Mr Albanese said the deal would take Australia’s relationship with the US “to that next level”.
“It’s not just digging things up and exporting them, but making sure how do we have [investment] across the supply chains with our friends being able to benefit … [it] isn’t just digging things up, it’s also about processing,” he said.
In exchange for the financing, the Australian and US governments will be able to take a stake in the ownership of those facilities, and be granted a “right of offtake”, essentially guaranteeing some of the supply from those facilities will be available to Australia and the US.
Source: abc.net