Trump, Australia’s Albanese sign critical minerals agreement to counter China.
US President Donald Trump and Australian Prime Minister Anthony Albanese signed a critical minerals agreement aimed at countering China on Monday at a meeting marked by Trump’s jab at Australia’s envoy to the US over past criticism.
China loomed large at the first White House summit between Trump and Albanese, with the US president also backing a strategic nuclear-powered submarine deal with Australia to bolster security in the Indo-Pacific.
While Trump and Albanese greeted each other warmly, the US president expressed ire about past criticism of him by Australia’s US Ambassador Kevin Rudd, a former prime minister. Rudd in 2020 called Trump “the most destructive president in history”, later deleting the comment from social media.
Trump said he was not aware of the critical comments and asked where the envoy is now. Upon seeing him across the table, Trump said, “I don’t like you either, and I probably never will.”
The visit otherwise appeared to go smoothly, with Albanese and Trump signing a minerals deal that Trump said had been negotiated in recent months. Albanese described it as an US$8.5 billion (RM35.9 billion) pipeline “that we have ready to go”.
A copy of the agreement released by both governments said the two countries will each invest US$1 billion over the next six months into mining and processing projects as well as set a minimum price floor for critical minerals, a move that Western miners have long sought.
A White House statement on the agreement added that the investments would target deposits of critical minerals worth US$53 billion, although it did not provide details on which types or locations.
The US Export-Import Bank (Exim), which acts as the US government’s export credit agency, later announced seven letters of interest totalling more than US$2.2 billion to advance critical minerals projects in Australia. It said the letters went to Arafura Rare Earths, Northern Minerals, Graphinex, Latrobe Magnesium, VHM, RZ Resources, and Sunrise Energy Metals.
Exim said the projects span a range of critical minerals essential to advanced defence systems, aerospace components, communications equipment, and next-generation industrial technologies.
Albanese got welcome support from Trump for the A$368 billion (US$239.46 billion or RM1.01 trillion) AUKUS agreement, reached in 2023 under then-president Joe Biden. Under the deal, Australia is to buy US nuclear-powered submarines in 2032 before building a new submarine class with Britain.
While Trump has been eager to roll back Biden-era policies, he signaled his intent to back the AUKUS submarine agreement, months after his team launched a review of the deal over concerns about the ability of the US to meet its own submarine needs.
Ahead of Monday’s meeting, Australian officials emphasised that their country is paying its way under AUKUS, contributing US$2 billion this year to boost production rates at US submarine shipyards, and preparing to maintain US Virginia-class submarines at its Indian Ocean naval base from 2027.
The delay of 10 months in an official meeting since Trump took office had caused some anxiety in Australia as the Pentagon urged the Australian government to increase defence spending. The two leaders met briefly on the sidelines of the United Nations General Assembly in New York last month.
Source: Theedgemalaysia
