G-7 Ministers Discuss Increasing Aid to Resource-Rich Nations

Washington, April 17 (Jiji Press)–Finance ministers from the Group of Seven major industrialized countries on Friday discussed plans to increase financial aid to resource-rich nations through the World Bank and other entities as part of efforts to build supply chains for rare earths and other critical minerals that do not rely on China. The talks aimed at ensuring stable supplies of important minerals were held in Washington. The G-7 groups Britain, Canada, France, Germany, Italy, Japan and the United States plus the European Union. The gathering, also attended by representatives from countries producing important minerals, including Australia, Brazil and Zambia, was chaired jointly by Japanese Finance Minister Satsuki Katayama, economy and finance minister Roland Lescure of France, which holds this year’s G-7 presidency, and World Bank President Ajay Banga. Participants discussed the efforts to support industrial development in resource-rich nations by multilateral development banks, such as the World Bank, the Asian Development Bank and the Inter-American Development Bank, in order to diversify supply chains for critical minerals. Katayama told reporters after the meeting that these efforts will help increase employment in aid recipient countries and contribute to their economic growth. Rare earths are used in a wide range of products, such as automobiles and precision equipment. China accounts for 70 pct of rare earth mining in the world and 90 pct of refining. The country has used economic coercion on nations that take a confrontational stance against it, taking advantage of its dominant position in the rare earth market. An idea has been floated among the G-7 nations to set minimum prices for rare earths to protect their own markets from cheap Chinese rare earths produced at low labor costs and under lax environmental regulations. END [Copyright The Jiji Press, Ltd.]