Australia’s $1.2b Strategic Minerals Reserve

[John]

Following on from REEx article:
https://rareearthexchanges.com/news/australias-strategic-minerals-reserve-1-2b-with-open-questions/

So this is big news. For those not in Australia, this is an election pledge by the Labor Government (left side of politics) who are currently in power. The election is in a couple of weeks. And the polls are saying that Labor will win. So it is likely that this will become Govt policy.

See my rant here:
https://forum.rareearthexchanges.com/threads/funding-rare-earth-projects-rant.100/

This type of Government intervention into the critical mineral market is symbolic of the massive difficulties mines have getting financed and into production. All becasue China manipulates the whole industry. So our western Governments, who want to free themselves from Chinese depandance, are forced into the market to prop it up.

Much like what China did in the 1980s protecting their RE industry to get it started:
https://forum.rareearthexchanges.co...re-earth-restrictions-and-strategic-moves.16/
So China should be calling us out. They did the exact same thing to us.

So some questions about Aust Govt buying minerals:
- Which mines will they buy from?
- How will the prioritise which minerals to buy?
- Who will they sell them to?
- How long will they hold them?
- If they have to take physcial delivery, where will the store them? Costs?
- What happens when our iron ore industry tanks (or another mineral)....will the govt step in and start buying? Is this setting a precedent?

This has happened before:
- USA has had large Govt stockpiles - which were massive back during war times...but has dwindled in recent times to a modest heap.
- China has been stockpiling for years...and growing it. Maybe preparing for war?


Lots of questions here...what do others think?

 

[John]

https://rareearthexchanges.com/news/free-market-cant-beat-a-monopoly-abc-interview-exposes-australias-strategic-bind-in-rare-earths-war-with-china/?utm_source=Rare+Earth+Exchanges&utm_campaign=9778a871e6-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_50a3b684e9-9778a871e6-640552648&mc_cid=9778a871e6&mc_eid=3d177c6a68\\

Good article by REEx on how Australia will need to deal with its Rare Earth sector.

here is the ABC video:

 

[JVP73]

AFR Mining Summit in Perth today, where Madeleine King had a lot to say about the Critical Mineral Reserve.

From the AFR article:

Australia ready to play dirty against China’s rare earths manipulation​

"The details of the critical minerals reserve are so sketchy at this stage that the whole thing feels more like a state of mind than a concrete proposal. King, who is set to launch a taskforce that will be asked to come up with something in about 12 months, has given only the most basic of outlines."

 

[John]

12 Months!!! That is crazy. Why do people pull out these crazy timelines.

When you break it down. Most of the work could be done in about 2-3 hours. ie there is only about 4-5 options of how they proceed. They then get some of the heavy rare earth and critical mineral CEOs in the a room. Talk to them about it for 3-4 hours....then incorporate their feedback.....run it up the line to the politicians....bam...policy done. Then spend about a month doing the hiring of any additonal people/procuring contracts to help etc....so max 2 months of actual work.

Surely the word Critical in Critical Minerals means they need to act fast? I hope the opposition can at least force them to implement their policy faster. Because 12 months is absurd.