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The bosses of Australia's critical minerals and rare earths companies couldn't be happier, after Donald Trump and Anthony Albanese signed a deal aimed at kick starting enough mining and processing projects here and in the US to counter China's dominance in the sector. Each nation has committed at least $1.5 billion dollars to develop projects in the next six months, pledging a combined investment of $13 billion over the longer term. Warren Pearce is the head of the Association Mining and Exploration Companies, he says China is the main player in the sector, achieving its dominance over decades. He says what China tends to do is "flood the market with cheap supply of rare earths which has made every other competitor unable to compete on cost and essentially unable to finance and build projects and supply into that market. They've got the ability to make up those costs." But he concedes the time frame for establishing a commercially viable rare earths refining industry in Australia may be years away. Also this week, BHP used its AGM to play down its iron ore dispute with China as its main customer seeks to reduce its dependence on the Big Australian. BHP is facing pressure from China to drive down the price of its iron ore, amid strained negotiations over shipments.
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