A GLOBAL CRITICAL MINERALS TRUST

A PROPOSED NEW GLOBAL MINERALS TRUST IS DESIGNED TO ENSURE FAIR, SUSTAINABLE AND PEACEFUL ACCESS TO CRITICAL MINERALS FOR THE GLOBAL ENERGY TRANSITION.

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As the world transitions towards a low-emissions future, critical minerals are set to play a fundamental role in the energy transition.

However, recent geopolitical tensions caused by trade uncertainty have threatened global supply chains and the ability to meet growing demand.

“A major challenge we're currently facing around the world is that some of the minerals in demand for the energy transition are also in demand by major economies for the weapons of war and strategic competition,” Global Centre for Mineral Security director at the University of Queensland’s Sustainable Minerals Institute Daniel Franks told Australian Mining.

“What we're seeing is minerals reemerging as a focus of geopolitical competition. Strategic alliances are forming and we're worried that could restrict mineral access for the energy transition, especially for those in the developing world.”

In response to the evolving global landscape, a group of scientists writing in the journal Science has proposed the creation of a Global Minerals Trust.

If a country is producing a certain critical mineral, it could sell it into the Global Minerals Trust, while countries looking to manufacture products from critical minerals could buy from the trust.

"That would take it out of a strategic competition domain and put it into a multilateral domain," Franks said.

A multilateral approach

According to the International Energy Agency’s ‘Global Critical Minerals Outlook 2025’, China is the major refiner for 19 of the 20 minerals analysed. These include rare earths, lithium, graphite and vanadium.