'Top marks': Miners hail Trump's rare earths deal but warn funding must flow to viable projects
ASX-listed Arafura Rare Earths has praised the landmark deal, but Pilbara Minerals expressed concerns funding could be squandered on unsustainable projects.
One of the early winners from the Albanese government's critical minerals deal with the Trump administration has hailed the agreement, amid brewing concerns the funding could be squandered on projects that are not viable in the long-run.
ASX-listed Arafura Resources is one of two companies to receive support under the new US-Australia policy framework for mining and processing critical minerals and rare earths, which was announced on Tuesday, receiving a USD100 million ($154 million) equity investment commitment from Export Finance Australia.
Arafura Resources chief financial officer Peter Sherrington told the International Mining and Resources Conference in Sydney on Tuesday that increased government support “de-risks” very capital intensive projects, which are key to underwriting industry and manufacturing.
Sherrington flagged that while “some projects may look like they’re being handpicked", they would be among the few "actual projects" that are ready for development.
