Australian Strategic Materials Limited (ASX: ASM) has signed a non-binding business agreement with the Chungcheongbuk Province in Korea and the Vietnam Rare Earth Company (VTRE) to co-operate to build a global rare earths supply chain.
Under the terms of the Agreement:
- VTRE and KSM Metals Co., Ltd (ASM’s subsidiary) (KSMM) agree to use reasonable endeavours to agree on the long-term supply of rare earth oxides from VTRE to KSMM.
- 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 upon.
- 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.
The 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 remains committed to developing the Dubbo Project and processing Dubbo Project materials through the Korean Metals Plant.
We are delighted for this opportunity to work together to secure the supply of rare earth oxides before our Dubbo Project comes online. This will support long-term sales agreements and production ramp-up at our Korean Metals Plant,” ASM CEO Rowena Smith said.
“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.”
