Dear Reader, In this just-published special investor report… …my colleague, Sam Volkering, makes a compelling case for why Trump is set to team up with three specific Aussie rare earth miners. Rare earth minerals — if you didn’t know — are vital to America’s most advanced and deadly weaponry. You’ll find these metals in most of the US war fleet — from Virginia-class fast-attack submarines to the latest F-35 fighter jets. But they’re not American rare earths. Just about all of America’s defence systems are riddled with Chinese-sourced rare earths. As CNN reports: ‘China’s dominant position in the production of rare earth minerals has long-reaching implications for the U.S. Department of Defense… Use of rare earth materials is widespread in defense systems, including precision-guided munitions, lasers, communication systems, radar systems, avionics, night vision equipment and satellites.’ As you can imagine, China ruling over US rare earth supplies doesn’t sit well with Trump. And as the trade war rages, these metals are fast becoming a leverage point for China to bring the US to heel. Which means the US needs — is desperate even — to find a non-Chinese rare earth supply line. Australia could be the frontrunner. In fact, Australia looks increasingly like the only viable alternative to help the US end its dependence on Chinese rare earths. Trump knows it, too. In February 2018, he held high-level talks with then Prime Minister Malcolm Turnbull. Word is that on Turnbull’s visit to the White House, the two men shook hands on a rare earths alliance. When probed about the alliance, Turnbull said the intention of this partnership was to ‘…work together on strategic minerals exploration, extraction, processing, and research and development of rare earths and high-performance metals.’ Then, in October the same year, the US Department of Defense flew two US Geological Survey scientists to scope out a newly opened rare earths facility, 160 kilometres southeast of Halls Creeks in Western Australia. Bloomberg reports the geologists were at the site to ‘…study and learn about the geology, mineralogy, and chemistry of the deposits’. Then on 7 August, the CEO of Lynas Corporation, one of Australia’s largest and most established rare earth miners, revealed the company ‘has held discussions with the U.S. defense department and the Defense Logistics Agency’. Reader, you can see what’s unfolding here, can’t you? With the US-China trade war threatening America’s rare earth supplies, it’s surely only a matter of time before Trump orders his government to buy up much friendlier Aussie rare earths by the tonne. And Sam has got his eye on three ASX-listed miners the White House could soon tap for the minerals the US desperately needs. Sam’s investment logic is simple… He believes each ASX-listed rare earths miner he’ll introduce you to here could soon become a direct supplier to the US. If everything plays out as Sam suspects, a few sizeable orders from the US government could put some serious heat under the share price of each company. Grab your stake before the White House comes knocking, and it could be one of the best investment decisions you (or anyone else) will make in 2019. Click here for the full story. | Greg Canavan, Editor, The Rum Rebellion |
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