Australia Eyes Strategic Minerals Deal with US Amidst China Trade Flare-Up

Australia is contemplating the implementation of mandated floor prices for critical minerals alongside funding for new rare earth projects, as part of a resources deal proposed with the United States. This initiative is being reported by The Age newspaper.

Australian government officials are engaging miners in discussions to contribute to an A$1.2 billion strategic reserve specifically for critical minerals. The Age highlights that this move aligns with Prime Minister Anthony Albanese's efforts to finalize the deal before meeting with President Donald Trump in Washington on October 20. This summit marks the first meeting during Trump's second term between the longstanding security allies.

Amidst these developments, President Trump reignited trade tensions with Beijing as a counteraction to China's restrictions on rare earth exports. Given China's dominant position in the critical minerals market, the strategic reserve aims to reduce Western reliance on China. Australia is open to selling shares from this reserve to countries such as Britain, reflecting efforts by Western nations to secure a sustainable supply of these essential elements.

(With inputs from agencies.)