Australia announced on Monday that it will prioritize antimony, gallium, and rare earth elements as part of its A$1.2 billion (approximately $802 million) critical minerals strategic stockpile. The announcement comes as Australian Treasurer Jim Chalmers prepares to attend a Group of Seven (G7) meeting to discuss critical minerals.
U.S. Treasury Secretary Janet Yellen stated over the weekend that Australia and several other nations would participate in the G7 finance ministers' meeting in Washington on Monday to address the issue.
As one of the world's leading producers of critical minerals, Australia has been developing a strategic stockpile to mitigate supply chain vulnerabilities.
"Global demand for critical mineral resources is high, and Australia is rich in these resources. Our critical minerals stockpile will help us navigate global economic uncertainties and foster trade and investment," Treasurer Chalmers said in a statement.
The Australian Treasury office indicated that the first batch of prioritized minerals is essential for clean energy, high-tech manufacturing, and advanced military equipment.
"The stockpile will further advance Australia's critical minerals sector by ensuring the availability of mining rights for minerals produced domestically and selling these rights to meet demand, thereby strengthening reliable supply chains for our trade partners," the statement noted.
At a press conference in Perth, Australian Resources Minister Madeleine King stated that the government plans to introduce legislation to expand the powers of its Export Finance Agency (EFA) and the Department of Industry, which will oversee transactions related to the stockpile.
She said the stockpile is scheduled to launch by mid-2026 and will be operational before the end of that year.
King added that the EFA will enable offtake agreements with fixed or floating prices to be traded as forward contracts, which are set for the future delivery of physical supplies.
She also mentioned that the agency will manage offtake agreements, intermediate demand and supply aggregation, as well as inventories and contracts for difference (CFDs).
A contract for difference is a financial instrument that helps manage price risk from the initiation of a contract until its settlement.
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