Australia Steps Up Critical Minerals Strategy With New Stockpiling Initiative

Australia to Build Strategic Mineral Reserve to Bolster Global Supply Chains

Australia has announced plans to purchase and store key minerals from domestic producers, aiming to reinforce international supply networks vital for defense and advanced technology sectors.

According to a joint statement from Treasurer Jim Chalmers, Resources Minister Madeleine King, and Trade Minister Don Farrell, the government will dedicate A$1.2 billion (approximately $802 million) to create a stockpile focusing initially on rare earth elements, antimony, and gallium. As one of the leading rare earth suppliers outside of China, Australia seeks to reduce Beijing’s sway over these critical resources.

Highlights from Bloomberg

In recent years, critical minerals have become a focal point in global politics and trade, as nations compete to secure access to these essential materials. China, leveraging its dominance in the sector, has used its position strategically during trade disputes, prompting other countries to ramp up domestic production and build reserves.

“Establishing the Strategic Reserve marks a significant move for Australia in leading the global critical minerals sector,” Chalmers stated. He emphasized that the reserve will help position Australia at the heart of efforts to create dependable and resilient supply chains for international partners.

Following the announcement, shares of Lynas Rare Earths Ltd. surged by up to 6.5% in Sydney. Larvotto Resources Ltd., which is developing one of the world’s largest antimony mines in Australia, saw its stock jump 8.8%.

“The federal government is taking decisive action, and we’re thrilled that antimony is a priority,” said Ron Meeks, CEO of Larvotto Resources. “With our production set to account for 7% of global antimony output, we’re poised to become a major supplier when we commence operations in August.”

Larvotto has engaged in multiple discussions with both the Australian government and the US Trump administration to support international antimony supply chains from its Hillgrove project in New South Wales.

This initiative follows China’s recent move to limit rare earth exports to Japan amid escalating tensions over Taiwan. It also builds on a landmark agreement signed last year between Australia and President Trump, aimed at increasing US access to rare earths and other strategic minerals to counter China’s market dominance. The agreement is expected to support a pipeline of critical mineral projects worth around A$13 billion.

Additional Details on the Strategic Reserve

The government has indicated that one of the main goals for the reserve is to establish a price floor for critical minerals, helping to shield producers from market downturns caused by sudden influxes of low-cost Chinese supply.

Rare earth elements are crucial for manufacturing permanent magnets used in everything from military aircraft to medical devices. Antimony finds applications in flame retardants, electronics, and specialized alloys, while gallium is essential for advanced semiconductors in radar and telecommunications equipment.

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Reporting assistance by Martin Ritchie.

Updated to reflect recent share price movements and comments from Larvotto Resources.

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