Industry leaders at the AFR Mining Summit in Perth discussed the critical need for sustained government support for rare earths projects to mitigate China’s dominance in the sector. Newly appointed Minerals Council of Australia chair Amanda Lacaze highlighted that market distortions driven by Chinese supply and pricing have necessitated Western governments’ intervention, including the U.S. and Japan.
Arafura Rare Earths managing director Darryl Cuzzubbo noted that a U.S. floor price for rare earths has accelerated development outside China, helping stabilize prices. He emphasized that while government support is essential, creating permanent mechanisms could distort competition. Arafura approved a $1.9 billion project in the Northern Territory, which received backing from multiple government-supported lenders.
Rowena Smith, CEO of Australian Strategic Materials, cautioned against subsidizing projects that cannot operate economically and advocated for temporary support measures to help grow the rare earths market without long-term distortions. The ongoing debate underscores the challenge of building independent supply chains while ensuring a balanced market environment.
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