Australia is considering setting a price floor to support critical minerals projects, including rare earths, Resources Minister Madeleine King said, in comments that led to a rally in share prices for Australian-listed rare earths miners…Australia has been positioning itself as an alternative source of critical minerals to dominant producer China for use in sectors such as the automotive industry and defence…It offered on Tuesday an $87 million lifeline to Trafigura unit Nyrstar's metals processing operations. Nyrstar is assessing the potential to produce antimony, bismuth, germanium, indium at its smelters in Port Pirie and Hobart…"Pricing certainty means companies and investors are less exposed to volatile markets and prices, which are opaque and prone to manipulation," King said in a statement first reported by the Australian newspaper on Monday evening…Australia aims to provide price certainty for emerging critical minerals projects through its role as a buyer, after it pledged A$1.2 billion ($775.08 million) to build a strategic critical mineral reserve earlier this year…The agreements will focus on critical minerals with demonstrated end-uses in defence and strategic technologies and minerals where Australia is especially well-placed to provide supply amidst supply chain issues, particularly heavy rare earths.

China is limiting its flow of critical minerals to Western defense manufacturers, leading to significant production delays and sharp price spikes, the Wall Street Journal reported on Sunday…Beijing controls over 90% of the world’s supply of rare earth elements used in a myriad of military technologies, including jet-fighter magnets, infrared sensors, drone motors and precision munitions…According to the WSJ citing sources, the Chinese government is now refusing or delaying exports of minerals designated for such applications, and has introduced measures to enforce its control by requiring exporters to submit documentation — such as product or production-line photos — as proof of their civilian end use…The new restrictions, which came despite trade concessions made with the US in recent weeks, have pushed some defense manufacturers into crisis, the WSJ said…In one case, a US drone component firm faced production delays of up to two months while seeking rare earth magnets from non-Chinese sources. Meanwhile, samarium—a rare earth used in high temperature magnets for jet fighter engines—is being offered at as much as 60 times its typical price…Defense businesses warn that stockpiles of non-rare earths such as germanium, gallium and antimony are also running dangerously low…An assessment this year by the International Energy Agency showed that China leads the refining for 19 of 20 critical minerals, with an average market share of around 70%. To counter China’s dominance, the US Department of Defense has mandated that firms cease purchasing China sourced rare earth magnets by 2027.