The landmark announcement at the White House this week between the US and Australia, which finalised a monumental agreement to create a US$8.5 billion critical minerals pipeline between the two nations, has received widespread applause in the Australian industry.
Australian Prime Minister Anthony Albanese stated that the watershed deal was founded on the deep trust between the two strategic allies.
“There are no closer friends and allies than the United States of America and Australia,” Albanese said.
“President Trump and I agreed today we will work very hard together in both our nations’ interests. We’ve agreed today Australia and America are going to make more things together with our historic framework on critical minerals.”
The framework will launch with two key Australian ventures identified as critical to defence and energy security: the Alcoa-Sojitz Gallium Recovery initiative in Western Australia and the Arafura Nolans development in the Northern Territory.
Under the new agreement, both nations will take measures within six months to provide at least USD$1 billion in financing to projects in each country. These funds will target jointly identified gaps in priority supply chains.
The Prime Minister emphasised Australia’s unique position to contribute to the partnership.
“Australia is home to much of the periodic table of critical minerals and rare earth metals that are vital for defence and other advanced technologies,” Albanese said.
“Cooperation on critical minerals and rare earth supply chains is testament to the trusted partnership between Australia and the United States.”
The news has received an emphatic endorsement from the Australian mining industry, with Association of Mining & Exploration Companies (AMEC) chief executive officer Warren Pearce echoing the Prime Minister’s sentiments.
“Taking the geopolitics out of it, this $8.5 billion pipeline agreement to diversify supply chains makes perfect sense,” Pearce said.
“It’s also a clear vote of confidence in the capability and credibility of Australian companies and the broader resources sector, to deliver the secure and responsible supply chains our allies need.”
The South Australian Chamber of Mines & Energy (SACOME) also spoke soon after the deal, led by chief executive officer Nicola McFarlane.
“SACOME welcomes the acceleration of the partnership and collaboration between the Australian and United States governments in developing a diversified and fair market to enable our South Australian resources sector to add further value to our critical minerals supply chain capabilities,” McFarlane said.
Minerals Council of Australia chief executive officer Tania Constable said the initial two ventures prioritised under the framework are both strategically significant.
“In Western Australia, the Alcoa–Sojitz Gallium Recovery Project will deliver around 10 per cent of the world’s gallium supply, a critical input for semiconductors and advanced defence technologies,” Constable said.
“In the Northern Territory, Arafura’s Nolans Project will produce about five per cent of global rare earths, strengthening energy security and defence supply chains for Australia and its allies.”
