Australia mulls US deal, $777 million rare earth fund

Cue region in Western Australia. (Image: Austockphoto.)

Australia is considering setting minimum prices for critical minerals and investing in new rare earth projects as part of a potential resources deal with the US, the Age reported Sunday.

The government has begun talks with miners about contributing to a A$1.2 billion ($777 million) strategic minerals reserve, the newspaper said, citing a leaked departmental brief circulated in recent weeks.

The proposal under consideration includes possible price floors, government-backed loans, offtake guarantees and direct investment in Australian projects to bolster local producers.

The plan comes amid rising tensions over China’s dominance in processed rare earths and President Donald Trump’s threat of sweeping tariffs in response to Beijing’s export controls.

(By Jason Gale)

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