Former deputy PM advocates for stronger support of Australia’s rare earth industry

Former deputy prime minister Kim Beazley has called on Australian governments to protect the future security of their rare earth element (REE) riches.

Australia is currently one of the world’s major rare earth producers, contributing 5.14% of global rare earth products to rank fourth behind China, the United States and Myanmar in an industry currently estimated to be worth about $1.5 billion.

However, with numerous significant REE discoveries being made around the nation, there is a strong expectation Australia will continue to climb that ranking.

Natural riches

In a keynote speech at the annual Diggers & Dealers conference in Kalgoorlie, Mr Beazley said Australia should be doing everything it can to take advantage of its natural REE riches.

Chinese dominance of a sector that supports around $7 trillion worth of industry has led the US government to invest billions in developing an REE supply chain and Mr Beazley says Australia must follow suit.

In particular, he believes Australia should look to lock up its supplies of some of the most sought-after REEs.

“Terbium and dysprosium make missiles accurate,” he said.

‘Rare earth heaven’

Away from defence and security, Mr Beazley said that REEs are critical to everyone’s day-to-day life and that there is a very real need for Australian governments to step up their support of local rare earth miners.

“This country is rare earth heaven,” he said.

“But the important point on all of that is we’re only 20% exploring it, we have probably got this all coming out of our ears.”

“So, I think the taxpayers would be well pleased if we did things that meant that this country survived.”

Subsidies needed

Mr Beazley told the Diggers & Dealers audience that Australia should be comfortable with subsidising loss-making REE producers to prevent China from killing competitors by suppressing prices – as has happened with nickel.

He claimed Australia may be able to scale up its rare earth metal and magnet operations without China’s technological inputs but it has to be ready to meet the considerable costs to do so.

Mr Beazley said that for Australia to take advantage of its innovation capabilities, it should become a critical technology partner in advanced minerals processing and REE refining technologies.

“There may be half a gram in your phone, but your phone won’t work without them,” he added.