Australian Rare Earth Shares Surge Following Trump-Albanese Critical Minerals Deal
Udumbara
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Australian rare earth shares are soaring following the critical minerals deal between Washington and Canberra, aimed as reducing reliance on Chinese supply chains.
Northern Minerals Welcomes Signing
Following the meeting, Northern Minerals advised they had received a letter of support and interest to develop the Northern Minerals’ Browns Range Heavy Rare Earths Project. This project is located in Western Australia’s East Kimberley region.Northern Minerals (NTU) develops heavy rare earth elements dysprosium and terbium.
The letter, from the Export-Import Bank of the United States (EXIM), advised Northern Minerals they could consider financing up to US$230 million for the Brown Range rare earths project, working with Export Finance Australia (EFA).
Northern Minerals said the letters underpin the global significance of the Brown Range projects.
“Browns Range is one of the most advanced pure-play Dysprosium, Terbium, and Yttrium-rich heavy rare earths projects of scale outside of China and one of the most advanced in Australia,” the company said.
Arafura and Alcoa Shares Soar
Meanwhile, Arafura Rare Earths and Alcoa Corporation shares are also surging following news that they will benefit from the U.S.-Australia rare earths and critical minerals deal.Arafura produces neodymium and praseodymium at the Nolan’s project in the Northern Territory, while Alcoa is developing a gallium project in Wagerup, Western Australia.
Up to US$200 million in concessional equity finance would be provided to Alcoa, which would provide up to 10 percent of total global gallium supply, according to the federal government.
“Gallium is an essential input for defence and semiconductor manufacturing. This is a trilateral project with Japan, the United States, and Australia, which will strengthen our collective economic security. Japan has already provided 50 percent of the project costs to date,” the government said.
In addition, the Albanese government revealed it will provide US$100 million to the Arafura Nolan’s project in the Northern Territory.
US-Australia Framework
Both countries signed the “United States-Australia framework” for securing supply in the mining and processing of critical minerals and rare earths on Oct. 20 in Washington.Australia and the United States will cooperate in mapping mineral resources in both countries to broaden the critical mineral supply chains.
Albanese said there were no closer friends and allies than the United States and Australia.
“President Trump and I agreed today we will work very hard together in both our nations’ interests,” Albanese said.
He noted Australia was home to the majority of the periodic table of critical minerals and rare earth metals essential for defence and other advanced technologies.
“Cooperation on critical minerals and rare earth supply chains is testament to the trusted partnership between Australia and the United States as strategic defence allies,” he said.
Meanwhile, Trump revealed their governments had been working on the rare earths and critical minerals deal for “quite a while.”
“In about a year from now, we'll have so much critical mineral and rare earths, and you won’t know what to do with them,” Trump said.
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