Former WA Governor Kim Beazley says building a strong domestic rare earths industry will enhance ties with the United States to ensure Australia’s survival, while avoiding questions about nuclear policy.
Mr Beazley gave the keynote address at the Diggers & Dealers forum on Monday calling for taxpayer funds to be spent on buying up offtake from Australian miners producing rare earth elements to loosen China’s grip on the market.
“We are now very dependent on the Americans (for security) . . . they get something out of the this, and we need to play into this heavily . . . our basis essentially will be survival,” he said.
He said establishing a supply stream of rare earth elements to the US will help make Australia “indispensable” to the Western World superpower.
Rare earths have a variety of national security applications, including in the magnets that make precision-guided missiles possible, and Mr Beazley says the US is “totally vulnerable” to China’s monopoly and distortion of the market.
“I think we to practice 100 per cent China’s (model), that means the (Australian) government needs to buy processed materials and stockpile it,” he said.
“So we can, as the Chinese do, we play the same game.”
He pointed to Lynas Rare Earths and Iluka Resources as the two industry players that have the capability to process rare earths.
Lynas has a cracking and leaching plant near Kalgoorlie and also stands to benefit from a suite of new tariffs on Chinese imports into the US announced overnight.
The company is also looking to build a plant in Texas.
Mr Beazley, who has historically been a nuclear advocate, was also asked about his stance on the WA uranium mining ban and Labor’s opposition to nuclear power plants.
“I’m going to totally duck that one,” he said, pointing to his daughter — Hannah Beazley — being a minister in the WA State Labor government.
“I was always fearful to be an embarrassment to my father, and now I don’t want to be an embarrassment to her (my daughter) . . . the policy is uncomfortable enough.”
But Mr Beazley said nuclear submarines were “essential” for Australia’s security and labelled WA the “AUKUS state”.