The Hon Kim Beazley’s message to the 33rd annual Diggers & Dealers Mining Forum in Kalgoorlie was clear – Australia’s investment in Africa and sovereign ownership of its rare earths supply chain will determine the next century of geopolitical security.
Beazley is Labor royalty, a former Federal minister and past Ambassador to the US. The cold war overtones in his speech were summarised in a previously-classified map of APAC that showed the direct corridor from Australia to Africa.
“When you look at it that way you can see how vitally important this country is geographically,” Beazley said.
“WA is the northern most state. Potentially the most vulnerable, and potentially the most worth attacking.”
At the centre of Australia’s defence strategy, he said, was Australia’s ‘first brigade of the mining division.’ Closely followed by the mining ministers of Africa.
“[The mining ministers of Africa] come here because they have the most profound respect for what we do,” he said.
“Give Australian miners permission to mine, and the workers at the mines are Africans; the superintendents, accountants geologists and mining engineers are working tirelessly to train and be replaced by locals.”
“We don’t understand the ideological significance of what it is that we do in Africa. Africa will be the world’s greatest population, and also the greatest minerals deposit region in the world by the end of the century.”
Beazley then threw down the gauntlet to the Australian government to support the fledgling rare earths sector.
Globally, the rare earths industry is worth about $1.5 billion, yet it is vital to more than $7 trillion worth of industry. China has historically controlled the supply of rare earths. Australia is, perhaps, the only real potential competitor.
Of critical significance are the heavy rare earths elements – Dysprosium and Terbium, together DyTb.
DyTb are the key ingredient of the rare earths magnets that are essential for the production of EV motors and defence technology. And DyTb is almost entirely processed in China.
Beazly said that Lynas Rare Earths’ (ASX: LYC) Mt Weld operations, Northern Minerals’ (ASX: NTU) Browns Range project and Illuka’s (ASX: ILU) Eneabba processing facilities are a good start.
For the Australian Government, the opportunity, and necessity, is to control 100% of the supply and production from our onshore assets.
“Terbium and dysprosium make missiles accurate,” he said.
“There may be half a gram in your phone, but your phone won’t work without it. Without it nothing really works.”
Touch base with the Purple team. Peter Klinger and Gerard McArtney are in Kalgoorlie-Boulder and will be at Diggers & Dealers for the entirety of the conference.
