US, Australia sign critical minerals deal

President Donald Trump and Australian Prime Minister Anthony Albanese signed a critical minerals deal Monday that Albanese said includes plans for projects worth a total of up to $8.5 billion.

Albanese, in a meeting with Trump at the White House, said: “Australia and the United States will contribute $1 billion over the next six months with projects immediately available. »

But the White House later released a fact sheet saying countries would invest more than $3 billion in critical mining projects over the next six months.

The White House also said the Export-Import Bank of the United States would issue seven letters of interest for more than $2.2 billion in financing, unlocking up to $5 billion in total investment.

CNBC asked the White House for clarification on the discrepancy between what Albanese said and what the fact sheet says.

Albanese said there would be three groups of joint projects between the two countries, which will include companies such as Alcoa. US will invest in rare earth processing in Australia, PM says. One of the projects is a joint venture between Australia, the United States and Japan, he said.

“What we’re trying to do here is take advantage of the opportunities that present themselves,” Albanese told reporters.

The United States will invest in the construction of a gallium refinery in Western Australia, with a capacity of 100 tonnes per year, according to the White House. Alcoa announced in August that it was exploring the feasibility of a gallium project with Japan at one of its alumina refineries in Western Australia.

China dominates the global rare earth supply chain, particularly refining and processing. The United States depends on Beijing for its imports of rare earths. Australia, a close ally of the United States, is one of the few countries in the world, along with China, to process rare earths.

“In about a year, we’ll have so many critical minerals and rare earths that you won’t know what to do with them,” Trump told reporters. The United States is also working with other countries to build a supply chain that is not dependent on China, the president said.

China announced strict controls on rare earth exports earlier this month, pushing Beijing and Washington to the brink of a new trade war. Trump has threatened to impose 100% tariffs on Chinese goods starting November 1 or before if Beijing does not back down.

“They threatened us with rare earths, and I threatened them with tariffs, but I could also threaten them with many other things, like airplanes,” Trump said.

Trump confirmed he would meet with Chinese President Xi Jinping in South Korea later this month. The US president has announced that he will visit China early next year.

“We have had presidents who have allowed China and other countries to commit murder with impunity,” Trump said. “We’re not going to allow this, but we’re going to come to a fair deal. I want to be good to China. I love my relationship with President Xi. We have a great relationship.”