The Association of Mining and Exploration Companies (AMEC) has provided the Australian Government with a framework to fulfill an election commitment and build on an agreement between Prime Minister Albanese and US President Trump.
In 2025, President Trump and Prime Minister Albanese signed a landmark bilateral framework on critical minerals and rare earths. The agreement aims to deliver a US-Australia secured supply chain for critical minerals and rare earths required for defence and other advanced technologies.
AMEC’s ‘Design Paper for Australia’s Critical Minerals Strategic Reserve’ – commissioned by Mandala Consulting – ensures commercial bankability, limited tax payer fiscal exposure, and consistency with the federal government’s policy objectives.
The Critical Minerals Strategic Reserve, designed to strengthen Australia’s economic resilience and national security, responds to growing global supply chain risks.
Since the election promise was made in April 2025, AMEC has been in discussions with the federal government to finalise the paper and provide it to the government in December 2025.
AMEC Chief Executive Warren Pearce says the association’s recommended model centres around rare earths and provides a mechanism that meets the objectives of government and helps support the growth of Australian rare earths projects.
“We understand the importance of rare earths in the production of permanent magnets, essential components in technologies like fighter jets, radar systems, wind turbines, and elective vehicles,” Pearce says.
The recommended model – the Rare Earths Production Scheme (REPS) – leverages a contract for difference with a price collar to provide targeted support to heavy and light rare earth projects while minimising downside risk for taxpayers.
The model is considered similar to the Capacity Investment Scheme, while also focusing on rare earths required for magnet production as the scale of funding sharpens the focus.
AMEC intends to conduct working closely with rare earths developers and government stakeholders as the Critical Minerals Strategic Reserve moves towards implementation.
Ongoing industry consultation will help refine delivery, government and eligibility settings to ensure the reserve supports commercially viable projects, strengthens sovereign capability and aligns with the government’s broader Future Made in Australia agenda.
AMEC is an industry association representing more than 575 member companies from around Australia. The association’s members are explorers, emerging miners, producers, and a wide range of businesses and service providers working in and for the industry.
Write to Aaliyah Rogan at Mining.com.au
Images: AMEC
