Japan strikes rare earths deal with largest non-Chinese producer
Australian mining giant Lynas will sell rare earths to Japan for 12 years in a major pact meant to chip away at China’s dominance of the global market. The highlight of the deal is that it sets a minimum price of $110 per kilogram of the minerals. That is the same “price floor” that the US government included in a rare earths deal of its own last year. Price floors of this kind are meant to protect producers from China, which could attempt to put rivals out of business by flooding the market to drive down prices. The deal also comes as tensions between Japan and China continue to rise — Beijing recently restricted the export of a range of technologies to Tokyo after Japanese Prime Minister Sanae Takaichi suggested Tokyo would defend Taiwan in the event of a Chinese attack on the island.
Military power consolidation in Madagascar
In a surprise move, Madagascar’s military leader, Colonel Michael Randrianirina, fired the country’s prime minister and the entire cabinet on Monday. Randrianirina said a new prime minister would be announced in the coming days, but the unprompted dissolution of government reflects his grip on the African island nation. Randrianirina seized power in a military coup last October, following Gen-Z-led protests that toppled the previous government and demanded political reform and better basic services — Madagascar’s GDP is among the lowest in the region, and power and water are scarce. The protesters have issued a 72-hour ultimatum demanding Randrianirina resign, warning that the dissolution is a power consolidation and threatening to take to the streets.
