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The benchmark ASX 200 lifted 0.5 per cent in the first hour of trading to hit 9077.5 points, with the mining sector leading the charge with a strong 2 per cent rally. The $13.5bn framework agreement, spruiked by Mr Trump and the Prime Minister as a means to secure the base materials used in sensitive defence and tech industries, is expected to fast-track approvals for critical minerals projects in Australia. Arafura Rare Earths’ Nolans project in the NT stands to benefit immediately, with the company announcing the US Export-Import Bank will consider an investment of up to $460m into the proposed mine. Shares in Arafura rocketed 26 per cent higher at the opening bell to add $365m to the company’s market capitalisation. If Nolans goes ahead, the mine is expected to produce about 5 per cent of the world’s rare earths supply. “The support extended by US EXIM, in collaboration with the Australian government, demonstrates a proactive approach to the development of a diversified rare earth supply chain and downstream manufacturing capability,” Arafura chief executive Darryl Cuzzubbo said. Alcoa Corporation, meanwhile, soared more than 8 per cent to $60.10 by 11am after the company announced the Australian and US governments would back its proposed gallium plant co-located at its Wagerup alumina refinery in WA. Gallium is a critical mineral used in the semiconductor and defence sectors. “Alcoa has been a strong contributor to both the American and Australian economies and welcomes the opportunity to support both nations in progressing a new source of gallium,” Alcoa chief executive William F. Oplinger said. “The investment support from the US and Australian governments underscores Alcoa’s role in supporting the development of the critical mineral supply chain and the importance of our Australian operations not only to the aluminium industry but also as key to manufacturing, technology and defence industries.” The term “critical minerals” encompasses a range of commodities from lithium and gallium to cobalt and rare earths. The minerals have gained global attention in recent weeks after China declared it would restrict rare earths exports to the US, exposing supply vulnerabilities that could cripple Western economies. Aussie critical minerals stocks are rallying across the board. Australian Strategic Materials has jumped 15 per cent to $1.60, while Cobalt Blue has advanced 16.6 per cent to 24c. Mining giant BHP also lifted 2.4 per cent in opening trade to hit a market cap of $224.31bn following the release of its first quarter production results for the 2026 financial year. Quarter-on-quarter production has slipped, but year-on-year production at its copper division jumped 4 per cent to hit 493.6kt. BHP chief executive Mike Henry also said recent production disruptions at other copper miners would benefit the company. Iron ore production slipped 1 per cent from the prior year to hit 64.1Mt.
