Funding Rare Earth Projects - Rant

[John]

Ok...so this is more of a rant than a post...but here goes...


So the Australian Government has just announced they will buy and stockpile critical minerals from Australian producers.

This is in addition to them providing debt, equity, cash grants, production tax credits....plus i'm sure there are other things they have done too....


WHY?

Well becasue the normal instiutions that fund these mines are too scared to invest.

WHY?

Because China dominates the rare earth market, and can drive these mines bankrupt.


BUT...what about the Australian super funds.....they have about $4 trillion dollars.....and these Super funds should not only be investing to grow their returns for their investors....but also ensuring Australia maintains it's quality of life. And I know that people say they should not be constrained. But if they keep investing our money outside of australia...it can erode Australia! We loose jobs and the knowhow to do things...then we loose entire industries.

I am usually 100% behind a free market. But when that market is failing...and effecting the way of life in Australia....we need to change something.

Maybe these super funds need to be mandated to invest 5% in approved australian sectors (critical minerals, X Y Z).

Now i believe there was talk about this a while ago (maybe a year ago)...but that was about housing....and housing is screwed up in Australia because of all the tax incentives for housing...and immigration. The rare earth sector is different......it is being destoryed by China...so they can maintain their vice like grip on their monoply.


So this is great that Aust govt is supporting the rare earth sector....but should the Aust Govt do all the heavy lifting?

 

[multipolargrifter]

I agree. When it comes to the basics you need to run a country, the government should guide the markets to meet these needs. A completely free market where private capital investment is the one completely pushing markets around leaves immense holes that start to eat away at the fabrics of society. There are trade-offs to every system, but the Chinese economic system's success in undeniable and I think its particularly because they are much more attuned to the issues you raised in this post and aren't afraid to help guide the market to one that creates mutual prosperity and sovereignty instead of raw GDP.

 

[Fundamental]

Ok...so this is more of a rant than a post...but here goes...


So the Australian Government has just announced they will buy and stockpile critical minerals from Australian producers.

This is in addition to them providing debt, equity, cash grants, production tax credits....plus i'm sure there are other things they have done too....


WHY?

Well becasue the normal instiutions that fund these mines are too scared to invest.

WHY?

Because China dominates the rare earth market, and can drive these mines bankrupt.


BUT...what about the Australian super funds.....they have about $4 trillion dollars.....and these Super funds should not only be investing to grow their returns for their investors....but also ensuring Australia maintains it's quality of life. And I know that people say they should not be constrained. But if they keep investing our money outside of australia...it can erode Australia! We loose jobs and the knowhow to do things...then we loose entire industries.

I am usually 100% behind a free market. But when that market is failing...and effecting the way of life in Australia....we need to change something.

Maybe these super funds need to be mandated to invest 5% in approved australian sectors (critical minerals, X Y Z).

Now i believe there was talk about this a while ago (maybe a year ago)...but that was about housing....and housing is screwed up in Australia because of all the tax incentives for housing...and immigration. The rare earth sector is different......it is being destoryed by China...so they can maintain their vice like grip on their monoply.


So this is great that Aust govt is supporting the rare earth sector....but should the Aust Govt do all the heavy lifting?

Before the Government HAS to support Markets with direct funding, they could try plugging a few of the gaps that are draining funding from Projects. First and foremost, they need to stop the pillaging of Company value by the parasites in the Stockmarkets. Brokers, Market makers and Trading funds are as guilty as the Chinese when it comes to destroying a Companie's prospects to raise necessary finance. In Australia the ACCC are as useless as the UK's FCA, I expect the US is no different? We are trapped by our own "Capitalistic" philosophy, Xi must laugh himself to sleep every night!