Australian Strategic Materials (ASX:ASM) is the latest company to acknowledge the market volatility and speculation following US President Donald Trump’s global tariffs mandate.
Noting the response by China to impose increased export restrictions on a range of medium and heavy rare earth elements (REE), as well as their oxides, metals, alloys and magnets, Australian Strategic Materials says these developments highlight the risks of global over-reliance on a single jurisdiction for critical materials.
The company’s vertically integrated mine to metals strategy through its Dubbo Project in New South Wales, Australia, and its flagship Korean Metals Plant, Australian Strategic Materials says it is uniquely positioned to deliver a broad portfolio of rare earth products – from ore through to alloy – outside of China’s influence.
Many of the materials affected by China’s new export restrictions are already available or planned through the company’s alternative supply chain, offering partners a viable, de-risked solution.
Australian Strategic Materials’ ‘shovel ready’ Dubbo Project hosts neodymium, praseodymium, dysprosium, terbium, zirconium, niobium and hafnium, with the opportunity to be in production by 2028.
The company says its metallisation capability at its Korean Metals Plant is currently producing commercial quantities of neodymium praseodymium (NdPr) metal and neodymium iron boron (NdFeB) alloy, with well advanced plans to deliver dysprosium and terbium metals at commercial scale in 2025.
China is responsible for some 60% of global REE mining output and over 90% of refining and magnet production. As such, Australian Strategic Materials says these export restrictions are likely to directly and immediately impact the global supply chains of a wide range of industries – from clean energy technologies (such as electric vehicles) to advanced manufacturing, defence and aerospace.
Australian Strategic Materials CEO, Rowena Smith says the company’s vertically integrated mine to metals strategy, places it in a unique position to help mitigate the global impacts of China’s latest export restrictions.
“The covid pandemic made it clear that resilient, diversified supply chains are critical for global industry and national security. These new restrictions only heighten that urgency,” says Smith.
“Even in the absence of export restrictions, global demand for rare earth products is projected to far exceed supply. The world must act now to develop alternative sources.
“With our Korean Metals Plant – one of the few facilities outside China already producing rare earth metals and alloys – and the long-life Dubbo Project, ASM is well-positioned to support Australia and its global partners in securing a stable supply of these critical materials for the future.”
Write to Adam Orlando at Mining.com.au
Images: Australian Strategic
