Gao Shi Plans to Visit Australia at Month's End to Explore Rare Earth Cooperation

According to Nikkei Asia, Japanese Prime Minister Shigeru Kōshi plans to visit Australia during the upcoming holiday period later this month, aiming to discuss strengthening the rare earth element supply chain and cooperation on maritime security in the Strait of Hormuz.

The visit plan was announced shortly after Japan signed a rare earth agreement with France, as reported by NHK on Wednesday. The Tokyo government and Western nations have been working to diversify their supply chains and reduce excessive reliance on China—the world’s largest producer and supplier of rare earths.

The report indicates that Kōshi hopes to enhance collaboration in economic security. Australia possesses abundant critical minerals and rare earth resources and is also a major supplier of liquefied natural gas and coal to Japan. Sources say that both sides are expected to reach specific agreements on strengthening critical mineral supply chains during the upcoming summit. Japanese and Australian leaders may also explore cooperation in areas such as cybersecurity and artificial intelligence.

Australia’s efforts to reduce dependence on China have enabled mining companies in the country to secure deals. Last week, Australian rare earth producer Lynas reached an agreement with South Korea’s LS Eco Energy on a potential rare earth transaction.

It is reported that the two companies exchanged convertible corporate bonds worth 30 billion Korean won each and announced they will formally advance cooperation in the rare earth supply chain. This marks the establishment of a strategic alliance combining capital and technology, officially launching long-term collaboration. Lynas is the world’s largest rare earth producer outside of China and currently the only overseas company capable of both separating and supplying light and heavy rare earth elements.

In addition, Australian Minister for Resources and Northern Australia Madeleine King said on Thursday last week that France is among countries planning to invest in Australia’s critical minerals projects. Speaking during the "Minerals Week" summit in Canberra, she told Reuters: "Since signing a framework agreement with the United States, this work has become even more urgent as other partners seek to ensure their own access to critical minerals."

King noted that "France is becoming increasingly eager." It is understood that France has already begun cooperation in policy and financing frameworks, including through export credit institutions like Bpifrance Assurance Export. However, unlike the United States and Japan, France has not yet announced large-scale financial support for Australia’s critical minerals projects.

Australia is seeking hundreds of millions of Australian dollars in additional investment for 49 mining projects and 29 midstream processing projects to develop its rapidly growing critical minerals industry. It is projected that the sector will generate AUD 18 billion (approximately USD 12.52 billion) in export revenue starting from the fiscal year beginning July 1. In March this year, Australia joined the G7 Critical Minerals Production Alliance to help achieve its growth targets.

Source: rfi

Original article: toutiao.com/article/1861543818625156/

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