AMEC CEO Warren Pearce:
"We know a bit more about [the Strategic Reserve] since before the election...
National offtake agreements with participating companies for the stockpile is voluntary, but the idea is the government enters into a minimum floor price arrangement with producers. That makes sense, and it matters to companies because when you're trying to secure investment in a space where the emerging market is small and really volatile, that doesn't look like a particularly desirable investment for investors. If you have a floor price, you know what the upside is from where your floor is. So that could work for us. What happens now is the pricing can go so far below your operating cost, you're out of business pretty quick...
it's a good concept as an investment, and one that we could utilize to help get some of these projects that are struggling to attract investment off the ground."
https://www.spglobal.com/commodity-insights/en/news-research/latest-news/metals/052325-interview-australias-critical-minerals-reserve-may-compete-with-miners-lobby-group-ceo-warns
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