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1) The US-China Economic and Security Review Commission's report emphasized the US dependence on China for critical minerals, crucial for defense systems and high0tech components, stating China's potential ability to disrupt rare earth oxide supply by 40-50%, affecting advanced US defense components. China's recent export controls on gallium, germanium, and related products have sparked concerns about critical mineral supply. While the Pentagon has a strategic germanium stockpile, it lacks reserves of gallium, vital for specialized electronic equipment like radar systems. Estimates suggests that in a complete cutoff scenario, global inventories might exhaust after several months. The historical context of China's past restrictions on rare earth exports to Japan in 2010 highlights the impact of such actions, leading Japan to diversify its suppliers and invest globally to reduce reliance on Chinese resources. Senate Minority Leader Mitch McConnell emphasized the pivotal nature of this competition for American history, criticizing the Biden administration's handling of the situation, expressing concerns about prioritizing green climate policy over strategic competition with China.
2) In a recent report, BHP emphasized Australia's need to boost nickel and copper mining while advocating for support for nuclear power to maintain competitiveness amid evolving climate policies. The global shift towards decarbonization challenges Australia's traditional reliance on carbon-intensive commodities like coal and iron ore, positioning the nation at an economic crossroads. BHP's President if Australia operations, Geraldine Slattery, stressed the necessity for Australia to compete effectively on a global scale, aligning with the goals of the Paris Agreement. This alignment requires rapid adoption of renewable energy, nuclear power, electric vehicles, and battery storage technologies. The report highlighted a substantial demand surge for resources like copper, nickel, lithium and cobalt by 2030, estimating a need for significant capital investment, around $100 billion annually, to meet these demands. Australia's current share in global resource production, especially in key commodities like copper and nickel, falls short of its global resource reserves, necessitating a shift to secure its position in the resources market. Increasing production could generate jobs, attract substantial investments, and foster economic growth, particularly in remote regions of Australia. The report emphasized the potential for Australia to command a premium as a high-quality producer by upholding stringent environmental, social and governance standards. While acknowledging the significant opportunity for Australia in the changing global economy driven by decarbonization, electrification, and population growth, the report also highlighted that competing nations are aggressively investing in essential minerals for decarbonization, urging Australia not to miss out on this critical opportunity.