Maria Martinez
WASHINGTON, Jan 12 (Reuters) – Finance ministers from advanced economies met in Washington on Monday to discuss possible price floors and partnerships to ensure supplies of strategic rare earths, Germany’s Lars Klingbeil said, adding that many questions remained outstanding.
“A number of issues remain outstanding and will need to be clarified in the coming weeks – not only between the finance ministers, but also between the foreign ministers and the energy ministers,” Klingber said.
He said the discussions had just begun but the issue would become a central topic during France’s presidency of the Group of Seven advanced economies this year.
The Washington meeting brought together finance ministers from the Group of Seven nations as well as those from Australia, Mexico, South Korea and India. Klingber said that a meeting of foreign ministers will be held soon to discuss the issue of rare earths.
The bottom line for rare earth prices is on the table
Finance ministers discussed a price floor for rare earths, a minimum price that would ensure producers outside China receive at least that level even if market prices fall due to China’s dominance and ability to bring large supplies to the market.
“This is not about antagonizing anyone, but about strengthening cooperation between partners,” Klingbeer said.
He said that China did not react in any way to the meeting, while emphasizing that Germany’s strategy with China is to de-risk, not to decouple.
“The advantage of a minimum price is really that the market knows what prices to expect and we can minimize the influence of countries that might try to influence market prices,” Klingbeer said.
Still, he said countries needed to carefully weigh the possible consequences of price floors in the coming years.
“Discussions have now begun and we hope to reach a conclusion as quickly as possible,” Klingbeil said.
(Reporting by Maria Martinez; Writing by James McKenzie; Editing by Mark Heinrich and Diane Kraft)
