New Zealand has been holding closed-door discussions with the USA on the provision of vital minerals, as Donald Trump threatens to position new tariffs on nations who fail to signal a deal.
The admission comes on the again of a memorandum submitted to the Waitangi Tribunal, during which claimants famous a “secret” vital minerals deal struck between The US and Australia final 12 months. The submission says a equally non-public deal in Aotearoa would present “willful disregard” by the Crown for its obligations beneath Te Tiriti o Waitangi.
On Friday, the Ministry of Overseas Affairs and Commerce confirmed to Newsroom that New Zealand was in discussions with the US concerning a “non-binding vital minerals framework”.
It’s believed an announcement on the matter may very well be coming inside a matter of weeks.
The US has pressured allied nations to use vital mineral deposits, a key a part of the nation’s navy and computing race with China which presently produces 90 p.c of processed uncommon earth minerals worldwide.
Crucial and rare-earth minerals (together with nickel, antimony, cobalt and vanadium – the goal of the Taranaki seabed mine) are important for superior applied sciences, particularly specialised magnets, that are utilized in primarily all electronics and autos.
In October final 12 months, China demonstrated its maintain on the worldwide provide when it introduced international corporations would want approval from its authorities to export magnets that contained even hint quantities of rare-earth supplies of Chinese language origin or have been produced with Chinese language expertise.
Trump has sought to seek out another provide, a drive that impressed him to drift the thought of invading allied territory in Greenland and seizing it by power.
He discovered success late final 12 months, when Australian Prime Minister Anthony Albanese travelled to Washington to ink an $14 billion deal to use Australia’s wealthy uncommon earth deposits.
Shortly after the deal was made, Australian impartial senator Lidia Thorpe declared: “Albanese is buying and selling stolen items from stolen land with Trump on this minerals deal, a lot of it to gasoline the US conflict machine.”
Trump has made clear his need to bolster his nation’s navy and technological prowess, and his expectation that allied nations do the identical. Crucial minerals have been a limiting think about each of those aspirations, however the Australian deal excited him.
“In a few 12 months from now we’ll have a lot vital mineral and uncommon earth that you simply gained’t know what to do with them,” stated Trump. “They’ll be price $2.”
Intentional or not, devaluing the worth of vital minerals was exactly how China managed to nook a lot of the worldwide provide, an strategy outlined in an official proclamation from Trump on January 14.
Within the proclamation, Trump stated the US would difficulty retaliatory tariffs on any “international buying and selling companions” that didn’t ink a deal just like Australia’s, setting a 180-day deadline for motion.
It was not clear which international nations Trump had in thoughts, however the proclamation was primarily based on a report he acquired simply 4 days after Albanese paid a go to.
Coalition championing minerals sector
New Zealand has been actively growing its vital mineral sector, with Jones as its champion.
In January 2025, the Ministry of Enterprise, Innovation and Employment revealed the Crown’s minerals technique with an inventory of 37 “vital minerals” – 21 of which may very well be exploited right here (together with coal, which isn’t a mineral).
The technique’s aim was to double mineral exports to $3b by 2035 with an emphasis on strengthening worldwide partnerships.
Later that 12 months, in November, the Authorities introduced New Zealand had joined the Minerals Safety Partnership: a bunch of 15 nations plus the European Union, together with fellow 5 Eyes intelligence companions the US, United Kingdom, Canada and Australia.
Within the announcement, Overseas Affairs Minister Winston Peters stated the partnership was of “important significance for New Zealand’s worldwide relationships”.
Jones explicitly linked the deal to attracting international funding within the mining sector and fuelling worldwide demand for uncommon earths.
On the again of Trump’s 180-day deadline, if New Zealand has been recognized as a possible “international buying and selling companion” – and it did formally be part of a buying and selling partnership final 12 months – Trump may impose additional import tariffs if New Zealand didn’t permit his authorities to use its native deposits of uncommon earth minerals.
In early January, events engaged with an ongoing Waitangi Tribunal case filed an pressing memorandum to seek out out if Jones’s authorities has been negotiating with Trump’s regime behind closed doorways.
Within the memo, lodged as a part of the tribunal’s local weather change precedence inquiry (WAI 3325), the claimants argued: “There’s a threat that such a negotiation is already underway and may very well be finalised and signed with out Māori, or anybody else in Aotearoa, being made conscious.”
Jones’s personal vital minerals listing and wider technique was launched with the dedication to be “guided by overarching rules to honour Te Tiriti o Waitangi obligations”.
‘Donald Trump says “bounce” and Christopher Luxon asks “how excessive?”‘
Chlöe Swarbrick, Inexperienced Social gathering co-leader
If the Crown have been to enter right into a backroom cope with the Trump regime for minerals mined in Aotearoa, the memo argued it might breach the rules of rangatiratanga and kāwanatanga, a plan of action “antithetical to tikanga, mātauranga and kaitiakitanga”.
Whereas Jones refused to remark, a international ministry spokesperson instructed Newsroom: “New Zealand is in discussions with the USA concerning a non-binding vital minerals framework. Officers are going via a course of of study, focused session and offering recommendation to related ministers.”
Inexperienced Social gathering co-leader Chlöe Swarbrick instructed Newsroom stated the declare demonstrated that if these negotiations have been already happening, they have been prone to be primarily based on phrases dictated by the USA.
She didn’t assume the coalition Authorities beneath Prime Minister Christopher Luxon’s management was in a position to push again on such phrases.
“Luxon’s rolling over and refusing to take a principled stand on our pursuits didn’t cease Trump throwing tariffs on our exports earlier than, and there’s no cause to anticipate complying with Trump’s threats would by some means work now,” stated Swarbrick.
“Donald Trump says ‘bounce’ and Christopher Luxon asks ‘how excessive?’”
