Australian mining stocks surged to record highs on Tuesday following a landmark U.S.-Australia agreement to boost investments in critical minerals. The two nations will each inject at least US$1 billion into mining and processing ventures over the next six months to strengthen supply chains for essential materials such as rare earths, lithium, and gallium — vital components in electric vehicles, defense systems, and clean-energy technologies.
The initiative aims to build an AU$8.5 billion pipeline of investment opportunities in Australia’s critical minerals sector, a move widely seen as a strategic effort to reduce reliance on China for key raw materials. This long-term policy commitment provides greater stability and lowers financial risk for Australian producers, helping to attract global capital into the sector.
As of 01:09 GMT, the S&P/ASX 200 Index rose nearly 1%, while the S&P/ASX 300 Metals & Mining sub-indexreached an all-time high with gains exceeding 2%. Shares of key critical mineral miners posted remarkable gains following the announcement. Northern Minerals (ASX:NTU) jumped around 12%, Latrobe Magnesium (ASX:LMG)soared 46%, and VHM Ltd (ASX:VHM) climbed 30% in early trade. Meanwhile, Arafura Rare Earths (ASX:ARU)advanced 10%.
The rally also extended to major miners, with BHP Group (ASX:BHP) rising 2.3% after reporting mixed first-quarter production results but maintaining its full-year guidance. The combination of government-backed funding, policy clarity, and stable output from top producers has fueled strong investor optimism.
Analysts believe this bilateral initiative marks a pivotal moment for Australia’s mining industry, positioning it as a global leader in critical minerals supply, essential for powering the world’s green energy transition and technological innovation.


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