Australian Strategic Materials Ltd (ASM) has signed an agreement with the Chungcheongbuk Province in South Korea and the Vietnam Rare Earth Company (VTRE) to co-operate to establish a long-term supply of rare earth oxides.
Under the terms of the agreement, VTRE and ASM subsidiary KSM Metals Co. Ltd (KSMM) will use reasonable endeavours to agree on the long-term supply of rare earth oxides from VTRE. VTRE will use reasonable endeavours to develop their mine to ensure they have the capacity to supply rare earth oxides to KSMM (with a value of approximately US$50 million in total) over five years, commencing in 2023, if commercial terms relating to supply can be agreed.
Further, the Chungcheongbuk Provincial Government agrees to provide administrative assistance to VTRE and KSM Metals to facilitate the supply of rare earth oxides from Vietnam to Korea. This long-term supply of rare earth oxides from VTRE to KSMM is intended to ensure certainty of the feedstock required for ASM’s Korean Metals Plant, before the Dubbo Project commences operation.
ASM’s Dubbo Project, a proposed long-term polymetallic resource development containing rare earths, zirconium, niobium, and hafnium, all critical metals essential for advanced and clean technologies.
“We are delighted for this opportunity to work together to secure the supply of rare earth oxides before our Dubbo Project comes online,” stated Rowena Smith, CEO, ASM. “This will support long-term sales agreements and production ramp-up at our Korean Metals Plant.”
She concluded, “We also greatly value this continued show of support for ASM by the Chungcheongbuk Provincial Government in Korea and look forward to growing our relationship with VTRE in Vietnam.”