- Australian Strategic Materials (ASM) enters a binding agreement for feedstock supply at its Korean Metals Plant (KMP) with Vietnam Rare Earth Company (VTRE)
- Through this agreement, VTRE will deliver 100 tonnes of product to ASM for the remainder of the 2023 calendar year
- ASM CEO and MD Rowena Smith says it gives the company feedstock to ramp up production at KMP as anticipated sales contracts progress this year
- Both parties also agreed to good-faith negotiations for a longer-term supply agreement
- Shares in ASM are up 1.9 per cent to $1.08 at 10:47 am AEST
Australian Strategic Materials (ASM) has struck a deal with Vietnam Rare Earth Company (VTRE) for feedstock supply at the ASM Korean Metals Plant (KMP).
Through this agreement, VTRE will deliver 100 tonnes of product to ASM for the remainder of the 2023 calendar year.
ASM Managing Director and CEO Rowena Smith said the agreement was timely for the company.
“This agreement will ensure we have the feedstock needed to continue the ramp-up of production at KMP as anticipated sales contracts progress this year,” Ms Smith said.
“In sourcing the required oxides from Vietnam and building our relationship with VTRE, we are also ensuring greater oversight of our supply chain, which supports our sustainability and governance commitments to both our customers and our shareholders.”
VTRE Chair Mr Luu Anh Tuan shared similar sentiments.
“VTRE is very happy to be progressing this partnership with ASM,” he said.
“With the synergies between our two companies, together we can build a global rare earths supply chain that delivers our customers and partners with the highest quality products and service.“
ASM also confirmed that both parties had agreed to good-faith negotiations for a longer-term supply agreement.
Ms Smith said that while the company remained committed to developing its Dubbo project and processing Dubbo project materials through the KMP, a multi-source feedstock option would be made possible through a longer-term agreement with VTRE.
Shares in ASM were up 1.9 per cent to $1.08 at 10:47 am AEST.