Former Western Australian governor and federal defence minister Kim Beazley has called for Australia to “play the same game” as China in securing supply of the nation’s rare earths output.
Former Western Australian governor and federal defence minister Kim Beazley has called for Australia to “play the same game” as China in securing supply of the nation’s rare earths output.
Mr Beazley stressed the importance of the nation’s rare earths supply to delegates at the Diggers & Dealers Mining Forum in Kalgoorlie, highlighting the significance of their defence applications to Australia’s allies.
Pointing to the work of rare earths producers Lynas Rare Earths and Iluka Resources, and the experience of Northern Minerals, Mr Beazley said Australia had the rare earths potential to be force in the sector outside of the market leader in China.
Local rare earths producers facing heavy up-front capital costs have increasingly turned to the financial security of Chinese offtake for raw materials as a means of supporting their production goals.
Mr Beazley said more government intervention would be required to make the nation’s rare earths vision a reality.
“I think the government should be the buyer of the processed materials and stockpiles,” he said.
Speaking following his keynote, Mr Beazley doubled down on calls for state intervention in the rare earths market – calling on taxpayer money to be used to fund project development as an investment in the defence sectors of the nation’s partners.
“I would think what we need to do in relation to rare earths might be $2-3 billion, which is a bit less than the price of a frigate,” he said.
“[If I had to choose between] ensuring the rare earths are sustainably produced, or buy[ing] another frigate, I would go for the rare earths.
“Our allies sort of skirt around this. They’ve always had this view that they’ve got everything they need, but they know that they haven’t.
“This country is rare earth heaven.”
Despite its critical weaponry applications and strategic importance, the price for neodymium-praseodymium (NdPr) has dropped off around 15 per cent since the beginning of the year and sits at almost half its record 2022 highs.
Mr Beazley said the price challenges showed the strategic nature of the Chinese market.
“The Chinese do mine-to-missile production, and they will take their profits at any point along that route,” he said.
“If destroying the rare earth industry in another country is what has to be done, they’ll do it.
“So I say, ‘fine, guess what? We’re going to do what you do.
“We are going to acquire this stuff.”
Mr Beazley said he believed taxpayers would support a rare earth stockpiling initiative if it meant the ongoing survival of the nation in an increasingly complex geostrategic world.
His keynote address came on the same morning as Lynas chief executive Amanda Lacaze was scheduled to address the annual mining forum.
