And in the process Rudd and his staff caught the attention not only of a large number of Republicans in the Congress but a number of Democrats as well.
The appointment of the former Prime Minister and Trump critic as US ambassador has been widely criticised, but this new approach opens up a strategic future for Australia in the new world that is emerging. Along with former Defence Minister Kim Beazley, Rudd would have been shattered by the cavalier willingness of an elected PM (Anthony Albanese) to jeopardised Australia’s key defence pillar, ANZUS.
By rejecting a very reasonable demand from the US that we spend three per cent of our GDP on defence, involving an outlay roughly equal to the PM’s voter seeking spending spree in preparation for the May election, we put in doubt the opportunity Rudd was opening up.
Rudd’s marketing of Australia first concentrated on one of the biggest supply gaps facing the US – the so-called hard rare earths led by terbium, where the US is almost entirely reliant on China.
Although only small quantities are required, it is the key component to a large number of defence applications, plus magnets for electric motors and a wide range of computer based functions. Given terbium is at the base of the new world, Americans are so desperate for non China supplies that they have backed a US company to collect fluorescent light globes and extract the terbium via a refining process.
In total jest, many Americans wonder if Times Square will have to be blacked out because of the need by the US for terbium.
The proposed US peace settlement in Ukraine revolves around massive investment by the US in Ukraine’s rare earths.
Members of the US Congress on both sides didn’t need Rudd to tell them that investing in Ukraine was high risk.
In addition, Ukraine deposits of rare earths like terbium need more drilling. Rudd and his staff sold Australia by emphasising a key element in a world where the US and other countries will now seek to build their industrial bases in a way similar to what took place after 1945.
Rudd first sold Australia to the US as a reliable source of minerals, which is a reputation we have earned in iron ore and natural gas.
Being a reliable supplier is a key plank in Australia revenue base. Rudd would not have emphasised that the government’s industrial relations legislation and energy policies endanger the revenue that maintains our living standards.
From Washington, Rudd would find it totally inconceivable that any Australian government would allow industrial relations legislation and environmental issues to jeopardise that hard won reliability reputation. And risking ANZUS is suicidal.
Australia has a number of sources of terbium, including the Australian Rare Earths’ deposits on the South Australian Victorian border. Iluka Resources is being backed by the federal government to erect a Western Australia refinery which will produce a range of rare earths, including terbium and dysprosium. Iluka has terbium and dysprosium deposits in the Wimmera, Victoria, but they are at an early development stage.
Its main source will be Northern Minerals concentrates from its WA Browns Range deposits, near the NT border. The Chinese have been attempting to control Northern Minerals.
The skyrocketing price of terbium has caused a number of miners to look closely at old drilling results, which revealed terbium at a time when it did not have substantial value.
Of these examinations, the most spectacular results have come from the drilling of BHP gold mines, which were sold to Newmont.
The BHP Gold drilling revealed very high grades of terbium in the Pilbara. The leases later went through several owners and the largest holder is now opinion poll researcher Gary Morgan’s Haoma, which acquired the leases to treat gold terbium, were not seen as a mineral of great value, but BHP drilling showed very high grade of terbium which will obviously require further drilling.g
But on face value it looks to be a major world deposit which is enhanced by gold.
If Australia can maintain its reputation as a reliable supplier – not a certainty – we can enhance our relationships with the US irrespective of who wins the next election. The party (parties?) will need to select a PM that understands the importance of ANZUS and in bringing defence spending into line with what is required to be in ANZUS.
We have the opportunity of creating new industrial bases, based on both rare earths and defence.
These are important days for the nation of Australia.
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When it became clear that Australia’s tiny position in steel and aluminium exports to the US would not trigger a tariff exemption, US ambassador Kevin Rudd and his embassy staff began promoting Australia in a new way.