Trump and Australia Target China: $2 Billion Rare Earth Deal

Australian rare earth miners are enjoying a boom. Following the signing of a $2 billion U.S.–Australia agreement to build a non-Chinese supply chain for critical minerals, local mining companies are seeing both their stocks and confidence surge. The deal, signed in Washington by U.S. President Donald Trump and Australian Prime Minister Anthony Albanese, marks a major step in the West’s effort to cut dependence on Chinese raw materials. “When I heard how much we’d received, I fell out of bed,” laughed Art Malone, head of Graphinex, which secured a 1.3-billion-Australian-dollar ($860 million) loan under the new initiative. His graphite deposit is now ranked as the third largest in the world. “Investors used to ignore us — now my phone doesn’t stop ringing,” Malone said. “This U.S.–Australia move finally rewards those who’ve been fighting at the frontier for years.”

A Deal That Redraws the Geopolitical Map Under the agreement, both nations will invest $1 billion each in mining and refining projects focused on rare earths, gallium, and other strategic minerals.

The U.S. Export-Import Bank has since approved $2.2 billion in loans to kick-start cooperation with seven key companies — including Graphinex, Arafura Rare Earths, Northern Minerals, and RZ Resources. Doug Burgum, the U.S. Secretary of the Interior, compared the initiative to a “new Manhattan Project.” “The race for resources and the race for AI supremacy are equally critical,” he said. Australia is now becoming the West’s central partner in reducing China’s dominance in chips, defense materials, and clean-energy technology.

Domestic Miners Ride the Investment Wave The Australian government recently purchased a $100 million stake in Arafura, operator of a rare-earth deposit near Alice Springs. Projects such as the Alcoa-Sojitz gallium refinery in Western Australia are also being prioritized by both governments. Mining magnate Gina Rinehart, known as Australia’s “iron lady,” has expanded her portfolio with stakes in Lynas Rare Earths, St George Mining, Brazilian Rare Earths, and even U.S.-based MP Materials. The value of these companies has skyrocketed over the past six months. “The minerals market is hot again,” said one investment advisor in Melbourne. “We used to talk about coal and iron — now it’s neodymium, gallium, and praseodymium.”

But Not Everyone Wins Despite the optimism, not all miners are celebrating. Building rare-earth refineries in Australia costs up to five times more than in Asia, largely due to energy prices and labor costs — meaning most projects depend heavily on government support. “Why should Australian taxpayers solve other people’s problems?” asked Thomas Kruemmer, head of Ginger International Trade & Investment. “There’s no real domestic market for rare earths here.” Others disagree. Former UK Deputy Prime Minister Dominic Raab, now head of global affairs at Appian Capital, argued that public funding is essential. “The market in this sector is fundamentally broken. Only government collaboration can create a truly Western supply chain.”

Washington’s Message Ignites Investor Confidence Demand for Australian resources surged after the U.S. invited 20 mining companies to Washington last month. “It was a massive boost,” said Campbell Jones, CEO of RZ Resources. “For the first time, we can see that the U.S. means business.” Adam Handley, chairman of Northern Minerals, agreed: “We’ve moved from cautious optimism to genuine excitement — not just as companies, but as nations.” As China tightens export restrictions, the U.S. and Australia are opening a new chapter in global resource policy — one that could rewrite the rules of international trade.

#TRUMP , #Australia , #Geopolitics , #economy , #china

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