Australia, Japan strengthen critical minerals ties

MELBOURNE, May 4 (Reuters) – Australia and Japan have beefed up their cooperation around critical minerals amid a state visit by Japan’s prime ‌minister, with the countries providing A$1.67 billion ($1.20 billion) in support for ‌the sector and flagging more to come.

Australia and Japan will focus on strategic projects to address ​the most urgent supply chain vulnerabilities in mining, refining and manufacturing in the two countries, the Australian government said in a statement.

Australia plans to provide up to A$1.3 billion, while the government of Japan has provided approximately A$370 million ‌in investments and grants, and ⁠plans to provide further investments and grants as projects develop, the statement said.

The projects build on the long-time backing by ⁠Sojitz and Japan Organization for Metals and Energy Security (JOGMEC) for Australia’s Lynas Corp, the world’s largest producer of rare earths outside China.

Projects that may be in line ​for government ​funding include:

• Alcoa, with Sojitz and ​the Japanese government, is working to ‌develop gallium recovery at one of its operating alumina refineries in Western Australia, for use in semiconductors, LEDs, and solar cells.

• Magnium Australia, in Western Australia, plans to produce high purity magnesium used in the automotive and aerospace sectors

• Tivan’s Speewah Fluorite project in Western Australia is set to produce acid‑grade ‌fluorite, a key raw material for hydrofluoric ​acid used in semiconductors, electric vehicles, and other ​advanced applications

• The Copi Critical ​Minerals Project in New South Wales is a mineral sands ‌project looking to supply critical minerals ​and rare earth ​elements. The project is owned by RZ Resources, with participation from JX Advanced Metals and Marubeni.

• Ardea Resources’ Kalgoorlie Nickel project, Goongarrie, is one ​of the largest nickel ‌cobalt resources in Australia. It is being developed as a joint ​venture with Sumitomo Metal Mining and Mitsubishi.

($1 = 1.3877 Australian dollars)

(Reporting by ​Melanie Burton; Editing by Sonali Paul)