【Ferro-alloys.com】：The Federal Government has revealed further details of its $1.2 billion Critical Minerals Strategic Reserve as Treasurer Jim Chalmers prepares to travel to Washington DC this week to brief Australia’s trading partners.

The planned reserve is designed to secure the supply of key minerals vital to Australia’s economy, national security and Future Made in Australia ambitions, while also supporting the global supply chains of partner nations such as the United States.

Ahead of Chalmers’ visit, the government confirmed the first minerals to be prioritised under the strategic reserve will be antimony, gallium and rare earth elements. These materials are critical inputs for clean energy technologies, high-technology manufacturing and advanced defence applications.

Under the model outlined by the government, the reserve will operate by securing rights to minerals produced in Australia and on-selling those rights to meet domestic and international demand. The approach is intended to provide an additional boost to Australia’s critical minerals sector while strengthening the reliability of supply chains for key trading partners.

Of the total funding commitment, $1 billion will be allocated for transactions through the expanded $5 billion Critical Minerals Facility, which provides government-backed loans and equity support to eligible projects. A further $185 million has been earmarked for selective stockpiling of minerals where required, along with other implementation costs.

The government has also confirmed enabling legislation will be introduced to provide Export Finance Australia with additional powers to support the operation of the reserve. The move is part of a broader push to deepen collaboration with international partners seeking to diversify critical minerals supply chains, including the United States, Japan, the Republic of Korea, Europe, Canada and the United Kingdom.

Federal Treasurer Jim Chalmers said the reserve was about safeguarding Australia’s future prosperity.

“Ensuring we have a reliable reserve of these critical resources will strengthen supply chains and help stabilise critical minerals markets,” Chalmers said.

“This means a more reliable supply of the resources we all need for the future. The world needs critical minerals, Australia has plenty of them, and our critical minerals reserve will help us weather global economic uncertainty while boosting trade and investment.”

Resources Minister Madeleine King said the reserve would provide important support for Australian critical minerals mining and processing projects.

“Developing the strategic reserve is another important step in Australia leading globally on critical minerals,” King said.

“The initial focus on antimony, gallium and rare earths will provide greater certainty for Australian projects, help attract further investment and assist the sector in managing potential future market disruptions.”

Industry has welcomed the announcement as a positive step toward positioning Australia as a reliable global supplier of critical minerals.

Association of Mining and Exploration Companies (AMEC) chief executive officer Warren Pearce said AMEC had been closely engaging with the government as it considered design options for the reserve.

“While today’s announcement is an important step, we are awaiting further detail on the remaining design options, including the financial mechanisms required to operationalise the Critical Minerals Strategic Reserve,” Pearce said.

“It is also vital that state and federal permitting processes are appropriate, efficient, streamlined and fit-for-purpose to enable rare earth, gallium and antimony projects to proceed and allow the reserve’s objectives to be met.”

AMEC last week released its own proposal for the operational framework of the reserve, centred on what it calls a Rare Earths Production Scheme.

“Our recommended model focuses on rare earths and provides a mechanism that meets government objectives, supports project development in Australia and minimises risks to taxpayers,” Pearce said.

• [Editor:Alakay]