While China and the US fight for rare earths, a small paradise in the Pacific reaps the rewards

While China and the US fight for rare earths, a small paradise in the Pacific reaps the rewards

While China and the US fight for rare earths, a small paradise in the Pacific reaps the rewards

Cook Islands

Cook Islands are a new stage for disputes over rare earths and deep-sea mining. And he’s enjoying the gifts on both sides.

As Cook Islandsa small archipelago in the South Pacific with around 15 thousand inhabitants, are becoming a stage for eternal strategic competition between the United States and China.

Within a few weeks, reported this week, two research ships (the first, North American, the second, Chinese) arrived in the country to map and capture high-definition images of the seabed. The goal? Assess the exploration potential of , which is on the lips of world leaders in 2025.

One of the reasons for the attraction is the fact that that vast maritime territory is practically untouched. Rare earths are essential for manufacturing vehicles, from automobiles to fighter planes, and other strategic minerals fuel industrial chains such as batteries. At this moment, the China dominates about 90% of the global supply of refined rare earths, an advantage that gives it great room for maneuver over the United States and that has become even more sensitive after Beijing has restrictedthis year, access to certain minerals — the two countries formalized in July a commitment that included Beijing’s commitment to resume exports of rare earth minerals, which dictated the end of tariff restrictions.

For decades, the idea of ​​mining the seabed was more promise than reality. Like offshore oil exploration, deep-sea mining has been repeatedly proposed but held back by costs and environmental risks. But current geopolitical tension appears to be bringing underwater mining back to the table, and the Cook Islands appear to be trying to turn the superpowers’ interest into an economic opportunity to their advantage.

Play with an increasingly interested side

Cook Islands authorities are exploring the moment, notes the WSJ. At the beginning of the year, the country signed a controversial agreement with Chinawhich allowed the exploration and research of the seabed in exchange for investments in infrastructure and the fishing sector. Beijing took leaders from the archipelago to China to present mining technology and, in parallel, offered training and scholarships to Cook students. And the US reacted quickly.

Fearing to be left behind, Washington signed its own agreement with the archipelago in August to support scientific exploration and finance potential projects linked to seabed mining. The involvement was personally promoted by David Copley, a former US Navy officer and now responsible for minerals in the Trump administration, who traveled to the most populous island in the archipelago, Rarotonga, and participated in formal meetings in a relaxed atmosphere, characteristic of the place. North American representatives even suggested aid such as the construction of an airport, provision of oceanographic research ships and even the donation of a bus, highlights the North American newspaper.

Washington has tried to secure minerals vital to economic and military security. The Trump administration in July announced plans to acquire a 15% stake valued at several billion dollars in MP Materials, the largest rare earths company in the US. Before that, to sign an agreement that would facilitate North American access to Ukrainian minerals as a form of compensation for military support during the war.

Deep sea mining has also risen in priority. In April, Trump signed an executive order to accelerate the development of offshore mining and promised to begin approving licenses for exploration in international waters—although deep-sea areas outside national jurisdictions are governed by treaties under United Nations administration rather than unilateral decisions.

For countries like the Cook Islands, the legal framework appears “simpler” to the USbecause many deposits are within the archipelago’s exclusive economic zone, which, in theory, gives the government power to grant licenses.

But the sudden interest from foreign delegations will be creating fractures on those islands where many business meetings take place in shorts and flip-flops, as the Journal notes. Local environmental organizations warn of the risk of moving forward without technical and institutional capacity to control the process. Kelvin Passfield, technical director of the environmental association Te Ipukarea Society, questions whether the country can, in fact, negotiate on equal terms with “the big guys”. The question is not only economic, but also one of sovereignty: to what extent can the archipelago guarantee that exploration respects environmental rules and produces sustainable benefits for the population?

Beijing’s gifts

The Cook Islands, named after British explorer James Cook, include 15 islands spread across a maritime area comparable to the size of Saudi Arabia. The economy depends heavily on tourism and foreign aid. Emigration to countries like New Zealand has reduced the local population and left gaps in the workforce and public services. Apart from fish, coconuts and some tubers, almost all food has to be imported. On more remote islands, accessing medical care can involve days of boat travel. In this context, the promise of revenue from mining is more than seductive.

A China has been investing in the archipelago for yearsfinancing infrastructure such as the police station, a primary school and irrigation systems in Rarotonga. In the agreement signed in February, Beijing committed to around $2.3 million in aid and projects, in exchange for cooperation in deep mining research and exploration.

The understanding aggravated internal and regional tensions. There were protests in Rarotonga, and New Zealand, traditionally the largest partner and donor, even suspended funding, arguing that it was necessary to rebuild “trust” between the two countries.

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