Australian Strategic Materials to buy rare earth feedstock from Vietnam (updated)

Australian Strategic Materials

01/05/2023 03:18

(Adds details on purchase deal)
       May 1 (Reuters) - Australian Strategic Materials Ltd
 ASM.AX  will buy rare earth oxides from Vietnam to be used as
feedstock for its Korean processing plant, the critical minerals
developer said on Monday.
    The company will buy 100 tonnes of rare earch oxides over
the rest of 2023 from Vietnam Rare Earth Company, which is
ultimately owned by China's government, according to Refinitiv
Eikon data. 
    ASM did not disclose how much it would pay, but said the
deal value would be determined based on published market prices
for neodymium-praseodymium oxide. 
    Rare earths are a group of elements that have applications
in electronics manufacturing and batteries, making them
important for the global transition towards cleaner sources of
energy and in defence.
    "This additional security of feedstock supply for the KMP,
will, in turn, allow us to broaden our options for oxide sales
from Dubbo once the project is up and running," said CEO and
Managing Director Rowena Smith. 
     The purchased material will be used as feedstock for its
Korean Metals Plant (KMP), located in the Ochang province of
South Korea. ASM is also developing its own rare earths mine
Dubbo in New South Wales, Australia. 

 (Reporting by Himanshi Akhand and Harshita Swaminathan in
Bengaluru; Editing by Rashmi Aich)
 ((Harshita.Swaminathan@thomsonreuters.com;
Himanshi.Akhand@thomsonreuters.com))