Lynas CEO Amanda Lacaze says business wary of criticising policy
Amanda Lacaze let loose last week on Labor’s proposal for a critical minerals stockpile. She now says business leaders criticise government policy ‘at our peril’.
Outspoken Lynas boss Amanda Lacaze has pulled back on criticism of Labor’s proposed critical minerals stockpile, saying business leaders in Australia intervene in politics “at our peril”.
Last week the critical minerals producer said Labor’s stockpiling concept will not unlock new sources of supply to allow Australia to compete with Beijing and will instead fund new warehouses which will largely lie idle.
Asked to expand on her criticism on Wednesday, Ms Lacaze said she was reluctant to weigh in on the issue.
“I spent my controversial dollars last week. And as I said at the time, we in business wade into politics at our peril,” Ms Lacaze told the Macquarie Australia conference.
“And I think that’s sad actually in Australia, because I think many of us in business do have something meaningful to say with respect to policy.
“In this instance, I felt the policy was maybe not completely thought through, if that’s a nice way to say it.”
Anthony Albanese has pledged to make Australia a key supplier of critical minerals and rare earths to help “like-minded” nations make weapons without relying on China, through a $1bn-plus strategic reserve to be used by a re-elected Labor government as a bargaining chip to win an exemption from US President Donald Trump’s tariffs.
Resources Minister Madeleine King last week hit back at Ms Lacaze, noting Lynas had received substantial support from governments to achieve its position in the market.
Ms Lacaze said she had a good relationship with Ms King, but said on Wednesday she retained her view opposing the minerals stockpile scheme.
“I don’t walk back on my comments that I cannot see how the Australian government buying product at any stage will facilitate a change in the market dynamics,” Ms Lacaze told The Australian. “And if that is the stated intent to influence the market, I just can’t see it happening.”
Ms Lacaze has previously insisted the best way for the US to secure rare earths is to buy it from Lynas, the world’s biggest non-China producer, from its mine in Western Australia and processing plant in Malaysia.
The Lynas chief said there was no consultation from Labor over its plan with the company.
“I know that there are some who have lobbied for it for some time, but I just can’t see how it will work to make a better industry,” she said. “And I just think there are better ways to spend money or even to not spend money as also an option.”
Plans for an initial $1.2bn investment in a national reserve would result in the stockpiling of critical minerals such as lithium, nickel and cobalt so they are available for Australian manufacturers and select nations such as Japan and South Korea.
With Mr Trump pressuring Greenland and Ukraine to provide critical minerals to his nation, The Australian has reported the Albanese government will ask for a new deal on tariffs in return for access to the reserve.
More broadly, the Prime Minister has also been pushing for Australia to fire up its manufacturing base, including with a “Made in Australia” campaign.
However, the Lynas boss said the move was misplaced and Australia should concentrate on its strengths as a service economy, education and a tourism destination.
“We’ve shut down more manufacturing across decades than we’ve started up, and a services economy is actually not a bad thing,” she said. “There’s not something magical about making things. But we don’t have a strong manufacturing base.
So as a business person, if it was me, I would be saying: ‘How do I play to my strengths and how do I make those work?’ If there are partnerships that I can develop that deliver benefit for both my business and my partners, then that is something we would investigate.”
Chinese authorities this year released draft regulations which foreshadow further centralised control of rare earths processing and consolidation of the industry.
If the draft regulations pass into law, Lynas expects centralised control will rest with two big firms, in Northern Rare Earths and China Rare Earths, which will absorb smaller, independent players.
The US Department of Defence is backing Lynas and New York-listed MP Materials, the world’s two biggest producers of rare earths outside China, to build processing plants in Texas.
More Coverage
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout