** Shares in Australian rare earth miners tank as investors take profits

** Rare-earth miners have been surging this week following news that Australia was formulating a plan for its critical minerals stockpile

** The plan would focus on sales of future production as leaders from the U.S. and Australia meet next week

** Australia is mulling mandated floor prices for critical minerals and funding for new rare earths as part of a proposed deal with the U.S. — per reports

** Shares in Lynas Rare Earths LYC.AX fall 5.1%, Australian Strategic Metals ASM.AX and Iluka Resources ILU.AX drag 14.9% and 7.2%, respectively

** Iluka and Lynas were among the top losers on the benchmark index .AXJO

** Australian Rare Earths AR3.AX down 12.5%; Arafura Rare Earths ARU.AX also inched lower

** LYC set to gain 9.2% this week, while ILU and ASM remain on track to add 23.6% and over 100%, respectively

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com))