Australia will join around 20 nations in Washington this week for a rare earths and critical minerals summit aimed at strengthening cooperation on supply chains for Western economies.
Federal Resources Minister Madeleine King has been invited to the meeting, which is expected to focus on measures to improve supply chain security, including potential pricing mechanisms for certain rare earths and critical minerals.
The summit follows recent G7 discussions on critical minerals and is expected to involve the UK, United States, Japan, France, Germany, Italy and Canada, alongside countries including India, South Korea, Mexico, Australia, New Zealand and potentially Argentina.
Reports last week suggested the United States Government was unlikely to support floor pricing schemes for rare earths as part of its critical minerals reserve strategy. However, King said Australia would continue with its own policy settings regardless of decisions made elsewhere.
“Every country has its own restraints on government spending and how that happens,” King told Sky News.
“In America, they have some issues with getting certain things through Congress, which we’ve seen elevated over a number of years now. That won’t stop Australia pursuing our Critical Minerals Strategic Reserve program to make sure Australia has access to the resources it needs to build a future made in Australia.”
The Federal Government announced the implementation of its Critical Minerals Strategic Reserve earlier this month, with the program expected to be operational by the end of the year.
The reserve is designed to secure the supply of key minerals critical to Australia’s economy and national security, while also supporting the supply chains of partner nations such as the United States.
Under the proposed model, the reserve will secure rights to minerals produced in Australia and on-sell those rights to meet domestic and international demand. The approach is intended to support investment in Australia’s critical minerals sector while improving supply chain reliability.
Of the total funding commitment, $1 billion will be allocated through the expanded $5 billion Critical Minerals Facility, which provides government-backed loans and equity support to eligible projects. A further $185 million has been earmarked for selective stockpiling where required, along with other implementation costs.