Generic Hero BannerGeneric Hero Banner
Latest market news

Australian rare earth miners to access defence funds

  • Market: Metals
  • 14/11/19

Canberra will announce a package of measures to support its rare earth mining sector as it works closely with the US to secure the supply of critical minerals for defence.

Australian rare earth mining projects will become eligible for financial support, including low-interest loans, from the A$4.4bn ($3bn) Defence Export Facility, which was set up last year to support the defence industry. The government will also set up a dedicated office to support Australian companies trying to secure investment for critical mineral projects.

Federal resources minister Matt Canavan will fly to Washington today for a series of meetings with senior US government officials. An escalation of trade tensions between the US and China has focused attention on the lack of a supply chain outside China for rare earths that are critical to defence, automotive, electronics and renewable energy.

Australia is the only large rare earth supplier outside China. Lynas produces around 8-10pc of global supply of light rare earths from its Mount Weld mine in Western Australia, which is processed and separated at its plant in Malaysia. And Northern Minerals has launched pilot production of heavy rare earths at its Browns Range project. But an extended period of low prices has created barriers for other large Australian projects, such as Arafura Resources' Nolans project in the Northern Territory, Alkane Resources' Dubbo in New South Wales and Hastings Technology Metals' Yangibana in Western Australia.

By Caroline Messecar


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
05/05/25

Mexico's manufacturing contraction deepens in April

Mexico's manufacturing contraction deepens in April

Mexico City, 5 May (Argus) — Activity in Mexico's manufacturing sector shrank for a 13th straight month in April, with declines accelerating in production and new orders, according to a survey of purchasing managers. The manufacturing purchasing managers' index (PMI) fell to 45.5 in April from 46.9 in March, finance executives' association IMEF said, moving further below the 50-point threshold that separates growth from contraction. US tariffs imposed since March are adding pressure to Mexico's manufacturing sector, which makes up about a fifth of the national economy. The auto industry, responsible for roughly 18pc of manufacturing GDP, may be the hardest hit by the new measures, including a 25pc tariff on auto parts that took effect 3 May. Mexico remains the top exporter of vehicles to the US, supplying 23pc of all US auto imports in 2024. But IMEF said tariffs compound broader, mostly domestic headwinds, including reduced public spending and investor uncertainty stemming from sweeping legal and regulatory reforms. New investment has stalled since late 2024. The PMI index for new orders fell by 2.5 points to 41.8, the lowest since June 2020. Production dropped by 2.5 points to 43.6, while employment fell by 0.6 point to 46.4. New orders and production have now been in contraction for 14 straight months, and employment for 15. Inventories saw the steepest drop in April, falling 4 points to 46.3 — sliding from expansion to contraction — as manufacturers accelerated shipments after tariff implementation dates were confirmed. IMEF's non-manufacturing PMI — which covers services and commerce — remained in contraction for a fifth consecutive month but edged up by 0.5 points to 49.0 in April. Within that index, new orders rose by 0.6 points to 48.1, employment increased 1.3 points to 48.6 and production held steady at 47.5. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

Australia's Labor win may aid low-carbon Fe, Al sectors


05/05/25
News
05/05/25

Australia's Labor win may aid low-carbon Fe, Al sectors

Sydney, 5 May (Argus) — The Australian Labor party's victory in the country's 3 May parliamentary election could support low-carbon iron and aluminium developers, providing policy clarity and public capital to the sectors. Labor's victory provides more certainty around Australia's A$14bn ($9.06bn) green hydrogen subsidy scheme, which will help steel producers transition towards hydrogen-powered steel furnaces. The opposition Coalition during the election pledged to scrap the programme, which will allow producers to claim A$2/t of green hydrogen produced from 2027. Australian steelmaker NeoSmelt and South Korean steelmaker Posco are developing electric iron smelters in Western Australia (WA) that produce hot-briquetted iron, which is used in the green steel process. Both projects will initially rely on natural gas but may transition to hydrogen-based processing as hydrogen production rises. Australia's hydrogen tax credits may prove crucial given ongoing hydrogen production challenges. South Australia's state government closed its Office of Hydrogen Power SA on 2 May, following a funding cut earlier this year. Labor can now also move forward with plans for A$2bn in low-emissions aluminium production credits, beginning in 2028-29. Smelters will be able to claim credits per tonne of low-carbon aluminium produced, based on their Scope 2 emission reductions. The party's proposal does not include any blanket credit for producers. Labor's aluminium production credits are aimed at supporting the Australian government's goal of doubling the country's share of renewable power from about 40pc to 82pc by 2030. Australian producers export about 1.5mn t/yr of aluminium, according to industry body Australian Aluminium Council, from four smelters located around the country. Green iron funding Labor's election win also secures its A$1bn lower-emission iron support pledge , first announced in late February. Half of the fund will go towards restarting and transitioning the 1.2mn t/yr Whyalla steelworks in South Australia into a green steel plant. The other half will support new and existing green iron and steel projects to overcome initial funding barriers. Labor has not allocated any funding through the programme yet. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Cliffs to idle 3 US steel mills this summer


02/05/25
News
02/05/25

Cliffs to idle 3 US steel mills this summer

Houston, 2 May (Argus) — Integrated steelmaker Cleveland-Cliffs will indefinitely idle its Conshohocken, Riverdale, and Steelton steel mills this summer in response to weak demand for the products produced at the mills. The idlings will impact about 950 workers spread across the 700,000 short ton (st)/yr Riverdale high-carbon coil mill in Illinois, the 500,000st/yr Conshohocken specialty plate mill in Pennsylvania and the 300,000st/yr Steelton, Pennsylvania railroad rail mill, a company spokesperson told Argus . Cliffs said the moves are temporary and will begin at the end of the required 60-day WARN notice periods in their respective states — on or about 30 June. By Marialuisa Rincon Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

US adds 177,000 jobs in April, jobless rate steady


02/05/25
News
02/05/25

US adds 177,000 jobs in April, jobless rate steady

Houston, 2 May (Argus) — The US added 177,000 jobs in April, topping expectations, even as the new US administration's campaign of tariffs against allies and trading partners heightened business and consumer uncertainty. Economists surveyed by Trading Economics had forecast job gains of 130,000 for April. The unemployment rate held steady at 4.2pc in April, the Bureau of Labor Statistics (BLS) reported. Job gains for March were revised lower by 43,000 to 185,000. The unexpectedly strong job report comes two days after the government reported the economy contracted at a 0.3pc annual rate in the first quarter, largely on a surge in imports as companies sought to build inventory ahead of the impacts of President Donald Trump's import tariffs. Consumer and business confidence have tumbled and economists have raised the odds of a US recession this year. US job gains averaged 152,000 in the 12 months prior to April. Federal government employment declined by 9,000 jobs in April and has fallen by 26,000 since January as mass federal layoffs take effect. Employees on paid leave or receiving severance pay are counted as employed, BLS said, so most of the announced federal job cuts do not yet show up in the data. Health care added 51,000 jobs in April, while transportation and warehousing added 29,000 jobs, more than double the average in the prior 12 months. Financial activities added 14,000 jobs. Construction added 11,000 jobs and manufacturing lost 1,000 jobs. Leisure and hospitality jobs grew by 24,000 and health care and social assistance added 78,000 jobs. Average hourly earnings rose by a 3.8pc annual rate, unchanged from the pace in March. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

South Australia closes Hydrogen Power SA office


02/05/25
News
02/05/25

South Australia closes Hydrogen Power SA office

Sydney, 2 May (Argus) — The state government of South Australia has rolled its Office of Hydrogen Power SA (OHPSA) into the Department of Energy and Mining (DEM), after scrapping plans for a 250MW electrolyser and 200MW hydrogen-fired power station. The OHPSA has been absorbed into the other state department, a spokesperson for SA energy minister Tom Koutsantonis said on 2 May. This comes after the state cut the A$593mn ($381mn) it had promised for its Hydrogen Jobs Plan in early 2025. The funds were reallocated to subsidise the 1.2mn t/yr Whyalla steelworks, which entered administration on 19 February . The associated Office of Northern Water Delivery, which was intended to support the green hydrogen sector in the state's upper Spencer Gulf region with new water pipeline supply, has also been incorporated within the DEM, Koutsantonis said on 1 May. SA's other major hydrogen hub planned at nearby Port Bonython was also overseen by the OHPSA. Development agreements with five companies have been signed for Port Bonython, including with London-based energy company Zero Petroleum for an e-SAF plant . SA is aiming to transition the ageing Whyalla steelworks to develop low emissions iron and steel products, but administrator KordaMentha is yet to finalise a buyer for Whyalla's controlling company OneSteel, which was formerly owned by UK-based GFG Alliance. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more