Canada's Lockheed F-35 order costs have leapt near 50pc
Ottawa | Canada's purchase of 88 Lockheed Martin F-35 fighter jets will cost far more than projected, and the country faces a potential shortage of qualified pilots to fly them, a government audit has found.
The overall cost estimate of the order has jumped to $C27.7 billion ($31.1 billion), almost 50 per cent more than originally anticipated, Canadian auditor general Karen Hogan said in a report. There will be at least $C5.5 billion in additional costs for infrastructure upgrades and advanced weapons, she said.
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West Australian
2 hours ago
- West Australian
WA Political veteran Vince Catania takes the reins at Hastings
Hastings Technology Metals has handed the chief executive baton to political veteran and company insider Vince Catania as the rare earths hopeful eyes a critical next chapter to develop its flagship Yangibana project in Western Australia. The former WA state MP, who joined Hastings in 2023 as general manager of corporate, has stepped up as CEO effective immediately after spearheading discussions with Andrew Forrest's Wyloo Consolidated Investments that led to the company's joint venture (JV) over Yangibana. There can be no doubt about his political skills - Catania had a successful career in the WA parliament for more than 18 years. He was elected as a Labor Party member of the upper house in 2005, where he represented the state's mining and pastoral region. He then moved to the lower house in the 2008 election by winning the huge regional North West Central seat. After a spat with his Labor colleagues, Catania made what could have been a career-ending move by switching his political allegiance to the Nationals WA. In the 2013 election, he stood as a Nationals WA candidate for North West Central – and won. He was re-elected in 2017 and again in 2021. WA's vast north west electorate includes the Yangibana site and, as its former MP, Catania is no stranger to the land or its challenges. Since joining Hastings, he has played a central role in maintaining environmental approvals and building trusted relationships with the region's traditional owners. Thanks largely to Catania's political nous, Hastings carved out its clever joint venture deal with Wyloo, which saw the company hold onto a solid 40 per cent stake in the Yangibana rare earths project. Wyloo took 60 per cent and has an option to lift its stake to 70 per cent. In return for handing over control, Hastings wiped a big chunk of debt off its books – a smart move that tightened the company's balance sheet while keeping meaningful skin in the game. Wyloo agreed to forgive $115 million from a ballooning $200M loan, originally issued to Hastings three years ago to fund its 21.5 per cent stake in Canadian magnet powerhouse Neo Performance Materials. The remaining $85M was also cleared after Hastings transferred its entire Neo stake - coincidentally valued at $85M - straight to Wyloo. The companies first teamed up in 2021 when Wyloo fronted $150M via an exchangeable loan note to bankroll the Neo acquisition - a debt that later swelled with interest and fees. Executive chairman Charles Lew said Catania has been a key asset since coming on board in 2023 and has played a crucial role across the business, including steering the company's partnership with Wyloo. Catania's appointment lands at a pivotal time for Hastings as it closes in on a final investment decision (FID) for the company's world-class neodymium-praseodymium rare earths and niobium deposit in WA's Gascoyne region. Hastings aims to make the fully permitted Yangibana project a major player in the renewable energy and electric vehicle supply chain. With a 20.9-million-tonne ore reserve and plans to process 1.1Mt annually over a 17-year mine life, the project will produce 37,000 tonnes per annum of rare earth concentrates – 27 per cent of which are total rare earth oxides. Notably, neodymium and praseodymium oxides, which are critical for high-performance magnets used in green technologies, make up 37 per cent of the mix. Yangibana also hosts a 6.7Mt niobium resource that could offer a valuable secondary revenue stream. Hastings has already sunk $158M into developing the project, with a further $316M flagged to reach production. The site is construction-ready, with a 294-room village, 2-kilometre airstrip, access roads, a bore field and processing plant equipment already secured, putting Hastings well ahead of the pack as the rare earths market gathers momentum. By the time Catania bowed out of politics in 2022, he'd weathered five straight elections and smoothly navigated shifts between parties and parliamentary houses – a testament to his sharp political instincts. It's that same savvy he'll likely lean on as he now climbs the ranks of the ASX corporate world. With a high neodymium-praseodymium ratio and a 17-year initial mine life, Hastings and Wyloo appear to be positioning Yangibana as a cornerstone rare earths project for Australia and a key piece in the global supply chain puzzle. The clock is ticking on construction, and Catania will be the man holding the blueprint. Is your ASX-listed company doing something interesting? Contact:
The Advertiser
6 hours ago
- The Advertiser
Nats leader fears US beef deal will butcher biosecurity
Allowing US beef to enter Australia to avoid tariffs imposed by Donald Trump would pose a significant risk to farmers, the prime minister has been warned. The federal government is considering granting more American beef producers access to the local market as Anthony Albanese seeks to strike a tariff deal in a potential meeting with the US president. But Nationals leader David Littleproud has urged Mr Albanese not to put the industry at risk, saying an introduction of US beef would threaten biosecurity. "It's important that the federal government looks Australian farmers in the eyes and says to them that they won't be collateral in trying to cut a deal with President Trump," he told reporters in Brisbane on Friday. "We should not take a backward step and concede by a security code deposit of protecting the agricultural industry here in Australia." Beef imports from the US have been banned in Australia since 2003 after an outbreak of mad cow disease. The ban was overturned in 2019 for cattle raised and slaughtered in the US, but large amounts of beef sent to American abattoirs come from Mexico or Canada. Mr Littleproud said ensuring the origin of beef imported into Australia was critical. "This will decimate the agricultural sector if we blink and allow President Trump to be able to roll over us on biosecurity," he said. "Traceability is so important and this is why we shouldn't be playing with President Trump talking about biosecurity. "We should be talking about a rules-based order of trade." Demand for Australian beef has been strong due to the ongoing drought in the US and America's lower herd numbers. At the end of 2024, a much lower supply from the US was improving Australian prices and international market value. The prime minister is expected to meet with Mr Trump on the sidelines of the G7 conference or in the US in mid-June, after the US president exempted the UK from his supercharged tariffs. The UK deal offers hope to Australia, if the government plays its cards correctly, but Mr Albanese confirmed any tariff deal would not be at the expense of Australia's biosecurity. "We will not change or compromise any of the issues regarding biosecurity," he told ABC Radio on Friday. "If things can be sorted out in a way that protects our biosecurity, of course, we don't just say 'no, we don't want imports here' for the sake of it. "But our first priority is biosecurity." National Farmers Federation president David Jochinke welcomed the comments and said biosecurity assessment processes were crucial to ensuring imports were safe. The Department of Agriculture is reviewing Mexican and Canadian beef. Mr Albanese has had three conversations with Mr Trump but said he was looking forward to meeting him in person, calling him an "interesting character". Though US beef is up for discussion, Health Minister Mark Butler ruled out bargaining with Australia's Pharmaceutical Benefits Scheme. Government officials insist they seek a full exemption from all tariffs after Mr Trump imposed a 50 per cent steel and aluminium tariff on all trading partners except the UK, on top of his baseline 10 per cent "Liberation Day" levies. Allowing US beef to enter Australia to avoid tariffs imposed by Donald Trump would pose a significant risk to farmers, the prime minister has been warned. The federal government is considering granting more American beef producers access to the local market as Anthony Albanese seeks to strike a tariff deal in a potential meeting with the US president. But Nationals leader David Littleproud has urged Mr Albanese not to put the industry at risk, saying an introduction of US beef would threaten biosecurity. "It's important that the federal government looks Australian farmers in the eyes and says to them that they won't be collateral in trying to cut a deal with President Trump," he told reporters in Brisbane on Friday. "We should not take a backward step and concede by a security code deposit of protecting the agricultural industry here in Australia." Beef imports from the US have been banned in Australia since 2003 after an outbreak of mad cow disease. The ban was overturned in 2019 for cattle raised and slaughtered in the US, but large amounts of beef sent to American abattoirs come from Mexico or Canada. Mr Littleproud said ensuring the origin of beef imported into Australia was critical. "This will decimate the agricultural sector if we blink and allow President Trump to be able to roll over us on biosecurity," he said. "Traceability is so important and this is why we shouldn't be playing with President Trump talking about biosecurity. "We should be talking about a rules-based order of trade." Demand for Australian beef has been strong due to the ongoing drought in the US and America's lower herd numbers. At the end of 2024, a much lower supply from the US was improving Australian prices and international market value. The prime minister is expected to meet with Mr Trump on the sidelines of the G7 conference or in the US in mid-June, after the US president exempted the UK from his supercharged tariffs. The UK deal offers hope to Australia, if the government plays its cards correctly, but Mr Albanese confirmed any tariff deal would not be at the expense of Australia's biosecurity. "We will not change or compromise any of the issues regarding biosecurity," he told ABC Radio on Friday. "If things can be sorted out in a way that protects our biosecurity, of course, we don't just say 'no, we don't want imports here' for the sake of it. "But our first priority is biosecurity." National Farmers Federation president David Jochinke welcomed the comments and said biosecurity assessment processes were crucial to ensuring imports were safe. The Department of Agriculture is reviewing Mexican and Canadian beef. Mr Albanese has had three conversations with Mr Trump but said he was looking forward to meeting him in person, calling him an "interesting character". Though US beef is up for discussion, Health Minister Mark Butler ruled out bargaining with Australia's Pharmaceutical Benefits Scheme. Government officials insist they seek a full exemption from all tariffs after Mr Trump imposed a 50 per cent steel and aluminium tariff on all trading partners except the UK, on top of his baseline 10 per cent "Liberation Day" levies. Allowing US beef to enter Australia to avoid tariffs imposed by Donald Trump would pose a significant risk to farmers, the prime minister has been warned. The federal government is considering granting more American beef producers access to the local market as Anthony Albanese seeks to strike a tariff deal in a potential meeting with the US president. But Nationals leader David Littleproud has urged Mr Albanese not to put the industry at risk, saying an introduction of US beef would threaten biosecurity. "It's important that the federal government looks Australian farmers in the eyes and says to them that they won't be collateral in trying to cut a deal with President Trump," he told reporters in Brisbane on Friday. "We should not take a backward step and concede by a security code deposit of protecting the agricultural industry here in Australia." Beef imports from the US have been banned in Australia since 2003 after an outbreak of mad cow disease. The ban was overturned in 2019 for cattle raised and slaughtered in the US, but large amounts of beef sent to American abattoirs come from Mexico or Canada. Mr Littleproud said ensuring the origin of beef imported into Australia was critical. "This will decimate the agricultural sector if we blink and allow President Trump to be able to roll over us on biosecurity," he said. "Traceability is so important and this is why we shouldn't be playing with President Trump talking about biosecurity. "We should be talking about a rules-based order of trade." Demand for Australian beef has been strong due to the ongoing drought in the US and America's lower herd numbers. At the end of 2024, a much lower supply from the US was improving Australian prices and international market value. The prime minister is expected to meet with Mr Trump on the sidelines of the G7 conference or in the US in mid-June, after the US president exempted the UK from his supercharged tariffs. The UK deal offers hope to Australia, if the government plays its cards correctly, but Mr Albanese confirmed any tariff deal would not be at the expense of Australia's biosecurity. "We will not change or compromise any of the issues regarding biosecurity," he told ABC Radio on Friday. "If things can be sorted out in a way that protects our biosecurity, of course, we don't just say 'no, we don't want imports here' for the sake of it. "But our first priority is biosecurity." National Farmers Federation president David Jochinke welcomed the comments and said biosecurity assessment processes were crucial to ensuring imports were safe. The Department of Agriculture is reviewing Mexican and Canadian beef. Mr Albanese has had three conversations with Mr Trump but said he was looking forward to meeting him in person, calling him an "interesting character". Though US beef is up for discussion, Health Minister Mark Butler ruled out bargaining with Australia's Pharmaceutical Benefits Scheme. Government officials insist they seek a full exemption from all tariffs after Mr Trump imposed a 50 per cent steel and aluminium tariff on all trading partners except the UK, on top of his baseline 10 per cent "Liberation Day" levies. Allowing US beef to enter Australia to avoid tariffs imposed by Donald Trump would pose a significant risk to farmers, the prime minister has been warned. The federal government is considering granting more American beef producers access to the local market as Anthony Albanese seeks to strike a tariff deal in a potential meeting with the US president. But Nationals leader David Littleproud has urged Mr Albanese not to put the industry at risk, saying an introduction of US beef would threaten biosecurity. "It's important that the federal government looks Australian farmers in the eyes and says to them that they won't be collateral in trying to cut a deal with President Trump," he told reporters in Brisbane on Friday. "We should not take a backward step and concede by a security code deposit of protecting the agricultural industry here in Australia." Beef imports from the US have been banned in Australia since 2003 after an outbreak of mad cow disease. The ban was overturned in 2019 for cattle raised and slaughtered in the US, but large amounts of beef sent to American abattoirs come from Mexico or Canada. Mr Littleproud said ensuring the origin of beef imported into Australia was critical. "This will decimate the agricultural sector if we blink and allow President Trump to be able to roll over us on biosecurity," he said. "Traceability is so important and this is why we shouldn't be playing with President Trump talking about biosecurity. "We should be talking about a rules-based order of trade." Demand for Australian beef has been strong due to the ongoing drought in the US and America's lower herd numbers. At the end of 2024, a much lower supply from the US was improving Australian prices and international market value. The prime minister is expected to meet with Mr Trump on the sidelines of the G7 conference or in the US in mid-June, after the US president exempted the UK from his supercharged tariffs. The UK deal offers hope to Australia, if the government plays its cards correctly, but Mr Albanese confirmed any tariff deal would not be at the expense of Australia's biosecurity. "We will not change or compromise any of the issues regarding biosecurity," he told ABC Radio on Friday. "If things can be sorted out in a way that protects our biosecurity, of course, we don't just say 'no, we don't want imports here' for the sake of it. "But our first priority is biosecurity." National Farmers Federation president David Jochinke welcomed the comments and said biosecurity assessment processes were crucial to ensuring imports were safe. The Department of Agriculture is reviewing Mexican and Canadian beef. Mr Albanese has had three conversations with Mr Trump but said he was looking forward to meeting him in person, calling him an "interesting character". Though US beef is up for discussion, Health Minister Mark Butler ruled out bargaining with Australia's Pharmaceutical Benefits Scheme. Government officials insist they seek a full exemption from all tariffs after Mr Trump imposed a 50 per cent steel and aluminium tariff on all trading partners except the UK, on top of his baseline 10 per cent "Liberation Day" levies.
West Australian
12 hours ago
- West Australian
China's rare-earth mineral squeeze puts defence giants in the crosshairs
The automotive and robotics industries have been hit particularly hard by China's rare earth export restrictions in recent weeks, but analysts warn Western defence giants will also feel the heat. Top US and Chinese officials are resuming trade talks in London for a second consecutive day on Tuesday, pushing to de-escalate tensions over rare-earth minerals and advanced technology. The White House has signalled a willingness to ease chip export controls if Beijing accelerates rare earth exports, boosting investor hopes of a breakthrough. Both sides have accused each other of reneging on a preliminary trade deal struck in Geneva last month. China's Ministry of Commerce in early April imposed export restrictions on several rare earth elements and magnets widely used in the automotive and defence sectors. The curbs were part of a response to US President Donald Trump's tariff increase on Beijing's exported products. National Economic Council Director Kevin Hassett on Monday told CNBC's 'Squawk Box' that he expected a deal on rare earths to be struck quickly. 'So, our expectation is that ... immediately after the handshake any export controls from the US will be eased, and the rare earths will be released in volume, and then we can go back to negotiating smaller matters,' Mr Hassett said. China is the undisputed leader of the critical minerals supply chain, producing roughly 60 per cent of the world's supply of rare earths and processing almost 90 per cent, which means it is importing these materials from other countries and processing them. US officials have previously warned that this dominance poses a strategic challenge amid the pivot to more sustainable energy sources. William Bain, head of trade policy at the British Chambers of Commerce, said it appeared some progress had been made on the first day of US-China trade talks, but it remains 'absolutely vital' to achieve a further breakthrough on rare earth policy. 'We've seen some relaxation over the weekend with licenses granted in sectors connected with robotics and electric vehicles, but if you take, for example, a critical mineral like samarium, within magnets, that's absolutely essential for F-35 fighter jet construction in the US,' Mr Bain told CNBC's 'Europe Early Edition' on Tuesday. 'They can't make them without that. And not having access to that is severely affecting both U.S. construction in that area, but also perhaps its national security if that remains in place,' he added. CNBC has contacted the U.S. Department of Defense and the European Commission, the European Union's executive arm, for comment. The restrictions imposed by China's Ministry of Commerce in early April require firms to apply for a license for the export of rare earths and magnets. Rare earth elements play an integral role in modern defence technologies, according to the SFA-Oxford consultancy, enabling advanced radar and sonar systems, laser guidance and propulsion technologies in combat environments. Automotive industry groups have complained about the cumbersome process of trying to get necessary approvals, warning of increasing production threats as inventories deplete. China nevertheless appeared to offer US and European auto giants something of a reprieve over the weekend. China's Ministry of Commerce on Saturday said it was willing to establish a so-called 'green channel' for eligible export license applications to expedite the approval process to European Union firms. Beijing also granted rare earth licenses to suppliers of US auto giants General Motors, Ford and Jeep-maker Stellantis, Reuters reported on Friday, citing unnamed sources. Gracelin Baskaran, director of the critical minerals security program at the Center for Strategic and International Studies (CSIS), a Washington-based think tank, said it was just a matter of time before the defence industry sounds the alarm over a rare earth shortage — noting that many of them have already done so behind closed doors. 'Defense companies are in the front line of impact, given we need thousands of pounds of rare earths in each submarine and fighter jet,' Ms Baskaran told CNBC by email. The US, European Union and Australia must coordinate supply- and demand-side interventions to boost rare earths production, CSIS' Baskaran said, adding that this need arises primarily because of prevailing price dynamics. 'If the price of praseodymium-neodymium (PrNd) oxide—a critical input for rare earth permanent magnets—remains below $60 per kilogram by 2030, nearly half of the projected non-Chinese supply would become financially unviable. On the supply side, this will necessitate measures such as production tax credits and subsidies,' Ms Baskaran said. 'On the demand side, implementing incentives to procure minerals from allied nations—similar to the provisions in the Inflation Reduction Act—will be essential,' she added. Last month, China temporarily paused export restrictions targeting 28 American companies following a trade truce reached between Washington and Beijing in Switzerland. China continued to block exports from that country of seven rare earth metals to the US, however. Many of the 28 American companies given a reprieve on dual-use export restrictions are common targets of Beijing's sanctions because of their activity in the defence sector. Henry Sanderson, associate fellow at the Royal United Services Institute (RUSI), a London-based defence and security think tank, said the defence industry hasn't been nearly as vocal as the automotive sector when it comes to concerns over the impact of a rare earth shortage. 'Defense is hard because its less transparent, but they definitely use rare earths and rare earth magnets and especially what's called samarium cobalt magnets, but it's a much smaller demand than EVs or robots or anything like that,' Mr Sanderson told CNBC by phone. 'I'm less clear whether defence is as worried as the civilian industries, but saying that, looking at the level of magnet production in the West, it is very small,' he added.
