Australia said that the US lowering the price floor for minerals would not affect its critical mineral strategy

(Reuters) — Australia said on Friday that it would support its critical mineral supply chain after the US abandoned its plan to guarantee minimum prices for such projects.

On Thursday, Reuters reported that shares of Australian rare earth miners dropped sharply after the Trump administration retreated.

On Friday, the industry remained in the red. Lynas, the world's largest rare earth producer outside China, saw its stock fall more than 4 percent.

Reuters reported that US government officials had conveyed this concession to American mining executives, indicating a lack of congressional funding for price floors and the complexity of market pricing.

Resource Minister Madeleine King told Sky News on Friday: "This will not stop Australia from continuing to advance our critical mineral strategic reserve program to ensure Australia can obtain the resources needed to build Australia's future."

"We have learned from the report that we will wait and see... the US introduced a price floor for a specific project, and this is the only project it has ever done so, which changed the game."

Australia has been committed to positioning itself as an important alternative source of minerals to China (the world's largest mineral producer) to meet mineral demands in the automotive and defense sectors.

The company said it would establish a strategic mineral reserve worth 1.2 billion Australian dollars (840 million US dollars), which it considers vulnerable to supply disruptions.

This reserve will prioritize antimony, gallium, and rare earth elements, and is expected to be ready by the second half of 2026.

As part of its strategy, the government is also considering setting price floors to support local critical mineral projects.

"We will use multiple mechanisms, one of which is determining a minimum price through take-or-pay agreements," King said. "We are determined to ensure that taxpayers' money is effectively used in the reserve and any minimum price."

Original article: toutiao.com/article/1855758734140416/

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