By Maria Martinez
WASHINGTON, Jan 12 (Reuters) – Finance ministers from a group of advanced economies meeting in Washington on Monday discussed a possible price floor as well as partnerships to secure strategic rare-earth supplies, Germany’s Lars Klingbeil said, adding that many issues remained open.
“There are a whole series of questions that remain open and that are to be clarified in the coming weeks —not only among finance ministers, but also among foreign ministers and energy ministers,” Klingbeil said.
He said discussion had just started but the issue would be a central topic under the French presidency of the Group of Seven advanced economies this year.
The meeting in Washington brought finance ministers from the G7 as well as their counterparts from Australia, Mexico, South Korea and India. Klingbeil said a meeting of foreign ministers to address rare earths will take place soon.
PRICE FLOORS FOR RARE EARTHS ON THE TABLE
The finance ministers discussed price floors for rare earths, a minimum price ensuring producers outside of China receive at least that level even if market prices fall due to China’s dominance and ability to flood markets with supply.
“This is not about working against anyone, but about strengthening cooperation among partners,” Klingbeil said.
There has been no reaction from China to the meeting, he said, while stressing that Germany’s strategy towards China is de-risking, not decoupling.
“The advantage of minimum prices is indeed that the market then knows what prices it can expect, and that we can minimize the influence of countries that may then try to influence market prices,” Klingbeil said.
Nevertheless, he said countries need to weigh carefully the consequences that price floors could have in the coming years.
“The discussion has now begun and we want to bring it to a quick conclusion,” Klingbeil said.
(Reporting by Maria Martinez; writing by James Mackenzie; editing by Mark Heinrich and Diane Craft)
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