King reveals details of critical minerals stockpile, vows it...

King reveals details of critical minerals stockpile, vows it will pay
AFR
May 21, 2025 – 5.00am

Resources Minister Madeleine King is confident her government’s critical minerals stockpile will generate revenue for Australia and dismissed industry fears it will distort prices, saying China’s existing stranglehold on the market is doing that anyway.King will reveal first details of the stockpile plan at The Australian Financial Review Mining Summit on Wednesday, saying it will only house “small” and “temporary” volumes of critical minerals.

Miners will not be compelled to sell into the stockpile, with King promising there will be no obligations for industry.King will say Australia has an obligation to take a lead in the critical minerals space as China seeks to restrict the export of certain commodities.“To be taken seriously on critical minerals globally, we need to do more than simply rely on the great gift that is Australia’s geology,” King is expected to say on Wednesday.

“The rules-based global order that we have enjoyed and prospered from is being tested.

“I am determined that Australia will step up, and we will lead on critical minerals and rare earths globally.”

Some leaders in the mining sector have criticised the mineral stockpile plan. Lynas chief executive Amanda Lacaze has warned it could undercut her company on pricing.

King is expected on Wednesday to push back at industry criticism by pointing out that many critical mineral companies in Australia got a leg up from government support.

“It has been interesting, to say the least, to see some commentators claim the government will distort market prices when these markets aren’t functioning properly in the first place,” King said.

“Our most successful critical minerals and rare earths producers got off the ground through a combination of hard work, innovation, commitment, and helped along from time to time with targeted support from government – both ours and those of our partners.”

Lynas has received funding from the US government for a rare earths processing plant in Texas, while also attracting support from Japan for exploration in Western Australia.

China has spent decades establishing its dominance of the rare earths market, especially the refining and processing of these minerals into the crucial metals and high-performance magnets that underpin much of modern industry.

King said the strategic reserve of minerals was first and foremost an Australian asset, but said it could also be employed as part of future discussions with the US, Japan and European economies.

In confirming companies would not be forced to sell into the government’s stockpile, King revealed the minerals included in the plan would be set aside only when it was required, or deemed “advantageous”.

“It is anticipated in most cases these will be small and or temporary,” she said.

“Offtake agreements are intended to secure offtake of priority minerals for strategic reasons – rather than to support commerciality of projects. But naturally, certainty of offtake may also help in some cases.”

Answering industry criticism about a lack of consultation on the plan, King said the government will soon establish a taskforce made up of private and public sector members to finalise the design of the reserve.

The government will liaise with industry on price setting and the future locations for mineral reserves.

King’s revelations on the stockpile come as WA Energy Minister Amber-Jade Sanderson prepares for the World Hydrogen Summit in Rotterdam.

Sanderson is expected to push back against negative sentiment towards green hydrogen and warn international companies that the technology will not become a reality in Australia without their investment.

“Less hydrogen hype isn’t a problem; it’s just the next phase. Our ambition to develop a world-class hydrogen industry remains stronger than ever,” she is expected to say.


“Our financial and human capital, natural resources, and political will is now more concentrated on high-impact, strategic projects with a greater chance of success.”