Australia confirms presence of rare earth metals West needs
Photo: Australia offered Trump its rare earth metals (Getty Images)
Australia has rare earth elements needed by the West and the skills to economically produce them. Tapping existing resources is much easier than developing new ones in other countries, Reuters reports, citing Australia's Lynas CEO Amanda Lacaze.
"Everybody who assesses this industry would know how long it takes from having the thought bubble of, 'Wouldn't it be great to have some rare earths from X?,' wherever X may be, and actually having a separated product sitting in a big bag waiting for a customer to buy it," Lacaze said.
CEO believes that to ensure supply to the West, it is necessary to buy Lynas products. "We have the resource, and we have the skills to process that resource cost efficiently," Lacaze noted.
Lynas Rare Earths, the world's largest rare earth metals producer outside China, reported a sharper-than-expected drop in first-half profits due to low market prices caused by oversupply and higher operating costs.
Market conditions for rare earth metals have been challenging in recent years as prices have declined. However, in recent days, there has been some improvement after China published a draft reform plan indicating that it will consolidate its industry, Lacaze said.
Lacaze’s comments came after sources reported that an agreement had been reached on the terms of a draft deal for Ukraine to supply critical minerals to the US. It will become part of President Donald Trump’s plans for a swift end to Russia's war against Ukraine.
According to Ukraine, the country has deposits of 22 out of 34 minerals identified by the European Union as critical.
