US President Donald Trump has reportedly “forgiven” Australian ambassador Kevin Rudd for his disparaging remarks after Trump’s first term in office.

Rudd was present on Tuesday (AEDT) for Trump and Prime Minister Anthony Albanese’s first face-to-face talks at the White House, where they signed a rare earths and critical minerals deal.

During an awkward moment, Trump embarrassed Rudd when asked about the former Australian leader’s past criticism – posting in 2020 that Trump had been the “most destructive” president in US history.

“I don’t know anything about him. If he said bad, then maybe he’d like to apologise?” Trump said.

“Did an ambassador say something bad about me?” he asked Albanese before waving his hand and saying, “Don’t tell me. I don’t want to know”.

“Where is he? Is he still working for you?” Trump said.

Albanese pointed to Rudd on the opposite side of the table.

Rudd, previously a fierce Trump critic, had labelled him the most destructive president in US history and accused him of abusing Christianity for political gain.

On Monday (US time), he said it was before he became ambassador. When Trump was elected again last year, he deleted the comments.

“I don’t like you either, and I probably never will,” Trump said, to a smattering of laughter.

Afterward, Trump reportedly asked Albanese where his ambassador was. Rudd approached Trump and apologised in person, officials told Australian media.

Trump reportedly responded that all was forgiven.

Rudd was also there for the working lunch with Albanese and Trump, with the conversation reportedly dominated by the two leaders and focused on their alliance and deals.

Opposition Leader Sussan Ley said the interaction made Rudd’s position as ambassador no longer tenable.

“The Prime Minister now has to back him or sack him,” she said in Sydney.

Kevin Rudd leaves the White House after Monday’s meeting. Photo: AAP

Meanwhile, news of the multibillion-dollar minerals deal pushed the Australian share market to record highs.

The agreement involves the processing of minerals and includes joint investments between the US and Australia and other shared projects involving Japan.

Australia and the US will together invest about $US3 billion ($4.6 billion) in critical mineral projects within six months, and America would back a gallium refinery in Western Australia.

Iluka Resources jumped 1.9 per cent while companies set to enjoy direct investment from the deal, such as Gina Rinehart-backed Arafura Rare Earths, soared as much as 15.6 per cent.

Arafura Rare Earths’ share price was 19.5c at the start of the month and has more than doubled to 48c, while Lynas Rare Earths could be bought for $14.63 a month ago — now they are $20.51.

New resources boom

The WA town of Wagerup and central hub of Alice Springs will be the first sites to get jointly US-Australian funded critical minerals facilities.

Australia will step up production of the much-needed resources following the pact with the US.

Albanese said the deal would mean “an accelerated pipeline of priority projects” with a $1.5 billion investment from both countries to secure a supply chain.

It was possible, Trump said, after fast-tracked negotiations over the past four of five months.

“It was good timing, and we got it done just in time for the visit,” he said.

“In about a year from now, we’ll have so much critical mineral and rare earths, and you won’t know what to do with them.”

Lynas’ Mount Weld mine in WA is ‘one of the world’s most valuable rare earths deposits’. Photo: AAP

Minerals Council of Australia chief executive Tania Constable said the deal would “unlock” $13 billion worth of production.

“This is an acknowledgement of Australia’s strategically important role in the development of new technologies, defence capabilities and renewable energy infrastructure that stem from the nation’s array of critical minerals,” she said.

The value of rare earths companies listed on the stock exchange have boomed in recent months given their coveted status.

First up under the pact will be the provision of gallium through a new facility in WA’s Peel region alongside Alcoa’s Alumina Refinery.

Gallium, used for defence and semiconductor manufacturing, is a critical mineral produced while making alumina from bauxite, as Alcoa does there.

Alcoa said it would aim to bring production online next year, with expectations of 100 tonnes produced each year — or up to 10 per cent of total gallium supply — eating into a market dominated by China.

“Alcoa has been a strong contributor to both the American and Australian economies and welcomes the opportunity to support both nations in progressing a new source of gallium,” Alcoa president William F. Oplinger said.

Australia will invest an initial $306 million in the facility, which Japan is also co-funding.

In the Northern Territory, the US and Australia are backing the Arafura’s Nolans project, around 135 kilometres north of Alice Springs.

Arafura will mine for neodymium and praseodymium, with a goal of supplying 4440 tonnes a year, estimated at 5-10 per cent of global demand.

EY spokesman Luke Branson said the US-Australia investment was very welcome, given the sector had “struggled to gain traction due to volatile markets and high startup and ongoing costs”.

-with AAP