“It is worth noting that China’s control over supply has been directly responsible for the previous spikes in rare earth prices,” Mr Dhar said. The market for rare earth elements is controlled by China, which accounts for somewhere between 85 and 90 per cent of the supply chain, according to CommSec mining and energy commodities research director Vivek Dhar.Īustralia and the US are the two next largest producers, but China’s “lax environmental regulations and cheaper costs” mean the nation’s grip on the rare element market is well and truly “entrenched”. Miners BHP and Rio Tinto have called time on coal projects, and Glencore has placed a cap on production. The demand for rare earth elements also comes at a time when demand for Australian coal – a $67 billion-a-year cash cow that represents more than 15 per cent of Australian exports – is plummeting. “One example of such a mine is Arafura Resources Nolans Project in the Northern Territory, which will attract $1 billion of investment into regional Australia and create hundreds of local jobs.”Ī map showing Australian rare earth mines. Mining Council of Australia chief executive Tania Constable said Australia has “significant rare earth element resources, which could sustain several key mines for decades”. What do they mean for Australia?Ī report by Geoscience Australia, based on data compiled by USGS, estimates the market for rare earth elements is worth around $24.3 billion annually, and Australia can increase its share of that pie. The name instead refers to the fact these elements are rarely found in large enough concentrations to support a commercial mine, making it difficult to produce them on an industrial scale. ‘Rare earth elements’ is a term applied to 17 metals used in the production of electronics.ĭespite their name, these elements aren’t particularly uncommon, with one of the 17, Cesium, actually the 25th most abundant crustal element on the planet. “The US has a need for critical minerals and Australia’s abundant supplies makes us a reliable and secure international supplier of a wide range of those, including rare earth elements,” Mr Canavan said. In November, Australia took a huge step towards making that a reality when Geoscience Australia and its American equivalent – the US Geological Survey (USGS) – struck a deal to develop resources and supply chains.
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