G7 divided on US proposal for critical minerals price floor

TALKS among G7 members over price supports for critical minerals have stalled, with European allies resisting a US proposal which uses an artificial intelligence pricing model developed by the Pentagon.According to a report by Reuters, the debate is over a proposed trading bloc — first floated by US Vice President JD Vance in February — aimed at reducing the West’s dependence on Chinese supply of minerals used for energy, mobility and defence.It has exposed deep divisions on cost, governance and the pace of any deal, the newswire said citing diplomatic and industry sources.The US proposal centres on a system called OPEN, developed by DARPA, which calculates mineral prices factoring in labour and processing costs while stripping out alleged Chinese market manipulation. European counterparts have pushed back, with officials arguing it would give Washington undue influence over bloc-wide pricing.“For Europe, it would be better to have a price index based on real deals in the European market,” Nicola Beer of the European Investment Bank told Reuters. The EU-backed agency EIT RawMaterials is separately developing its own index in partnership with digital platform Metalshub.The bloc is also divided on structure: France and Canada favour a multilateral G7-led framework, while Washington prefers fast bilateral deals to be broadened later.US Trade Representative Jamieson Greer told reporters earlier this month that Washington would use price supports to protect domestic production and was open to allies joining on those terms.The US intends to present binding bilateral proposals to Japan and the European Union before the end of June, with initial scope covering five to 10 minerals, including heavy rare earths, antimony, graphite and tungsten — all subject to Chinese export restrictions.Corporate support is also fragmented. The National Mining Association has cautioned against price-fixing, recommending tax credits instead. Sibanye-Stillwater, General Motors and MP Materials are among companies that have filed divergent submissions to Greer’s office.The post G7 divided on US proposal for critical minerals price floor appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com