Australian Strategic Materials Limited (ASM or the Company) (ASX:ASM) welcomes the announcement from Prime Minister Anthony Albanese and the Australian Labor Party, that a re-elected Australian Federal Government would establish a national critical minerals strategic reserve.
The announcement has outlined plans for a re-elected Australian Federal Government to establish a strategic reserve of critical minerals (including rare earths) with an initial investment of A$1.2 billion, consisting of national offtake agreements and stockpile. The Reserve has the potential to provide vital support for the critical minerals industry, helping to mitigate risks of disruption and market manipulation.
ASM Managing Director and CEO Rowena Smith, said: “These plans further highlight the global importance of Australia’s rich critical mineral endowment and processing capability. As a country, Australia can play a leading role in the development of secure, alternative rare earth and critical minerals supply chains and this initiative will add impetus to that objective.”
The Dubbo Project – positioned to respond
ASM is developing a unique rare earth and critical minerals mining and processing project in Dubbo, New South Wales. The Dubbo Project will produce a range of products that are in growing demand and facing increased global supply chain challenges. The project will extract light and heavy rare earths, zirconium, niobium and hafnium and, through its advanced process flowsheet, deliver a range of oxides and chlorides that will add value to Australia’s resources onshore.
A national critical minerals reserve aims to secure those materials that are a matter of national security and are impacted by price manipulation.
“The Dubbo Project’s broad basket of products are vital for a range of critical global industries including, advanced manufacturing, clean energy, defence and aerospace. All products currently appear on the Australian Critical Minerals List and the official lists of many other ally countries, these lists generally signifying that a mineral is essential for economic or national security and has a supply chain vulnerable to disruption.
“As one of the few relevant projects in Australia that is shovel ready and strategically positioned to address the needs of Australia and its allies, ASM looks forward to receiving further details of the strategic reserve and how the Dubbo Project can support Australia’s objectives,” said Ms Smith.
Dubbo Project products[1]
Commodities | Product | Production Quantity Metric Tonnes Per Annum |
Rare Earth Elements | Dysprosium Oxide | 142 tpa |
Neodymium Praseodymium Oxide | 1,342 tpa | |
Samarium Europium Gadolinium Chloride | 454 tpa | |
Terbium Oxide | 22 tpa | |
Yttrium + Heavy Rare Earth Chloride | 1,180 tpa | |
Zirconium | Zirconia | 16,000 tpa |
Niobium | Ferroniobium | 2,650 tpa |
Hafnium | Hafnium Oxide | 30 tpa |
View the Dubbo Project profile in the Australian Critical Minerals Prospectus.
A shifting geopolitical landscape
The rare earth and critical mineral sector has witnessed considerable volatility in recent months due to the escalating trade war between the US and China, with events continuing to unfold. ASM previously released a market update highlighting how the Company’s mine to metals strategy is uniquely placed to address the challenges and demands as a result of this geopolitical activity.[2]
A video interview with Rowena Smith discussing recent activity can be seen on the Company’s YouTube channel.
[1] Based on JORC reserves and resources. Refer to ASX Announcement: 7 December 2021, Dubbo Project Optimisation Delivers Strong Financials. All data and financial information in this announcement is taken from the Optimisation Study Work. The Company confirms that the material assumptions underpinning the estimates in the Optimisation Study Work announcement continue to apply and have not materially changed.
[2] Refer ASX Release 11 April 2025: China REE export restrictions underscore urgent need for secure alternative supply chain