Before the age of high-tech exploration, geologists spent hours simply looking out the window of a plane. Watching and hoping.
Observing the ground below and staring at the vast open landscape for any sign of a ‘geological anomaly.’
That might have been a change in colour or a weird pattern in the soil that signalled something different from the monotonous red dusty landscape below.
These rocks, millions, sometimes billions, of years old, all looked the same from the air. So, it took a trained eye to spot something unique in this red-stained landscape.
That’s how major discoveries were made back then. Australia is too big and too vast to explore on foot.
So it was…
Anything that appeared ‘different’ held potential for these early ore hunters. And that’s precisely how one prominent Australian struck it rich in the early 1950s.
Lang Hancock, the father of Gina Rinehart, spotted a geological anomaly that would make him an inductee into Australia’s most iconic hall of fame.
As the tale goes, Hancock pitched his single-engine Auster aircraft lower as the clouds rolled in during an unsettling Pilbara storm.
As Hancock drew nearer to the ground, he noticed a sequence of richly coloured rocks—an anomaly distinguishing them from everything else.
This would set off the world’s most significant iron ore discovery. And place Hancock on Australia’s most elite rich list.
A Decade Later, Something Similar Would Occur in WA’s Goldfields Region
In 1966, a couple of geologists flew over the Laverton area in Western Australia’s iconic Goldfields region.
A region that would go on to become one of the most famous mining districts ever, playing host to the infamous Poseidon Nickel boom of the late 1960s.
Except this group of airborne geologists didn’t chance upon gold, nickel, or anything of seemingly great value.
This was a phosphate discovery!
A useful and somewhat valuable commodity, but not worthy of the Hancock tale. But the true riches sitting within this ore body lay hidden for decades.
You see, in addition to phosphate, it contained a group of metals that (at the time) held little market value.
The airborne ‘ore hunters’ had no idea of the true value of their Laverton discovery, and they did not realise that it would take over half a century for that potential to be revealed.
In 2011, mining finally began here, 45 years after the initial discovery.
And now, 60 years later, the metals in this discovery are embroiled in a geopolitical showdown between the world’s two largest economies.
So, what am I talking about?
And how does it relate to our latest Diggers & Drillers recommendation?
Rare Earth Elements [REEs]
If you’re a long-term reader, you’ll know I’ve had plenty to say about this group of metals—the kink in America’s ability to push favourable trade terms against China.
The West gave up mining and processing of these elements decades ago. Meanwhile, China has steadily built up its supply chain, dominating around 70-90% of global processing.
For readers at my paid advisory service, we jumped into this theme early…
My advisory, Diggers & Drillers, was born from a single recommendation: Arafura Rare Earths [ASX: ARU].
In the years that followed, that looked like a bad call. Rare Earth stocks slumped, forcing us to cut losses and move on to more immediate opportunities.
But if you’ve followed events in 2025, you’ll realise we were spot on with what we stated back in 2022…
That rare earths would become the frontline battlefield in geopolitical trade tensions.
From Greenland to Ukraine to a potential mineral deal with long-term rival, Russia, Trump has been on a global rare earth tirade this year as he attempts to restore America’s supply chain for this vital resource.
Meanwhile, for the first time in almost 15 years, China deployed its most effective trade weapon… Cutting rare earth exports to the US in response to Trump’s Liberation Day tariffs.
Everything we laid out in our first edition of Diggers & Drillers is NOW coming to fruition.
In response, rare earth stocks are finally recovering, but have yet to enter a new bull market. The price trend remains unclear.
Earlier this month, it seemed a resolution was being made in Geneva, as leaders from both countries worked toward a trade deal.
That caused rare earth stocks to sell off. But last week, those negotiations hit another roadblock. I outlined the details here.
So, what could the future hold for Rare Earths?
As I pointed out, I’ve covered the rare earth story ever since I began with Fat Tail in 2022. Throughout that time, global trade has continued to erode.
But here, the geopolitical trend is far more visible: fragmentation, broken supply chains, and potentially higher inflation. Mining Memo has broadcast this to you in numerous editions.
And it’s a trend that won’t be reversed easily or quickly.
Two superpowers with vastly different ideologies seeking agendas that often conflict.
This geopolitical showdown has been a long time in the making, and I don’t expect ‘deals’ to swiftly reverse tensions anytime soon.
Critical mineral stocks remain a crucial hedge against this geopolitical friction.
Click here to learn how to hedge your portfolio against this risk using strategic resource stocks.
Regards,
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James Cooper,
Editor, Mining: Phase One and Diggers and Drillers
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