What I learned from the ANU Rare Earth Conference (REECON)

Mention of ASM online at live wire markets

https://www.livewiremarkets.com/wires/what-i-learned-from-the-anu-rare-earth-conference-reecon

The Metallization Moon Shot
If this were not exciting enough, industry doyen Ian Chalmers, presented on the history of the Dubbo Toongi polymetallic deposit, once with Alkane, but since spun off to the pure play rare metals firm Australian Strategic Materials (ASM.AX). ASM has done a splendid job of acquiring and proving a new technology for rare earth metallization Earlier, I mentioned the word monopsony, and the manner in which China has chosen to consolidate its position in downstream value-added activity. Upwards of 75% of market value for the global rare earth industry is in the magnet supply chain, using the so-called magnet rare earths: Neodymium (Nd); Praseodymium (Pr); Dysprosium (Dy) and Terbium (Tb). As Ian explained, the economics of the Dubbo Toongi project is improved once the Zirconium and Hafnium metals component is monetized. This can be done through the Zirontech metal refining process that ASM acquired in South Korea. As the company ASX progress reports demonstrate, ASM has been able to refine pure metal at two nines purity (99%) or better at its pilot plant in South Korea. They have also made some commercial sales of such metal into downstream industrial customers. This plan struck me as the way forward to defeat Chinese monopsony market power.ASM has further proving work to do on scaling up their South Korean metals plant and making commercial sales in sufficient quantity to prove up the non-Chinese buyer appetite. There are risks involved in such a strategy, but South Korea is home to numerous automobile firms that need to find their own freedom from China-based supply chain concentration. Ideally, ASM would first prove up the depth of metal demand using oxide raw material that is bought on market, and then backfill that raw material from their Dubbo Toongi deposit. This is an audacious and visionary plan, which is why we like it.

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