Aussie rare earth miners gain as government considers floor price

Iluka Resources

05/08/2025 04:37

Updates

** Shares in Australian rare-earth miners gain after government moves to create a floor price for rare earths to fight China's dominance in the sector

** Lynas Rare Earths LYC.AX gains as much as 7.1% to its highest since March 2012, while Iluka Resources ILU.AX rises up to 8.9% to A$5.795

** ILU shares highest since November 2024

** Resources minister Madeleine King said Australia is considering a price floor to support critical minerals projects

** "I think the market is now viewing rare earths miners and processors as strategic assets given the Government involvement" - Luke Winchester, portfolio manager at Merewether Capital

** Australia has been positioning itself as an alternative source of critical minerals to dominant producer China, for industries like the automotive industry and defence

 (Reporting by Rishav Chatterjee & Rajasik Mukherjee in Bengaluru)

 ((Rishav.Chatterjee@thomsonreuters.com))